Why Organizations Need Data Warehouses

So where can you store, harness and collect findings in your data - in one place? What is the right tool for this? Data Warehouses

Why Organizations Need Data Warehouses
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Regardless of what you are trying to build, you need the right tools. You can put a wardrobe up without a screwdriver or drill right? You can’t apply your makeup without brushes right? The same applies for when working with data. Something that is considered the new oil - so you can imagine the kind of tools you will need for something of high value

Many companies over the years have seen the value of data and said right, let’s start building machine learning models, use analytical skills and more to help us find deeper insights on this data. But many forget about how storing and harnessing your data is an important aspect to your strategy. 

So where can you store, harness and collect findings in your data - in one place? What is the right tool for this? Data Warehouses


What is a Data Warehouse?


Data warehouse which can also be referred to as an enterprise data warehouse is a central repository which contains data, information, and more which can be analyzed to make more informed decisions. 

It is considered a core component of business intelligence and the success of any organization in this day and age. 

Business and Data Analysts on the team can make use of Data Warehouses by:

  1. Measuring performance – using the data to see how different activities are performing, such as a particular Sales tool
  2. Acquire validations – when working with different tools and methods, you will want to get a better insight on how these tools/methods are improving your organization's goals. 

The data stored can either be from a company’s operational databases or external sources.


Why Data Warehouse’s differ from operational databases


An Operational Database is a database that is used to manage and store data in real time - meaning that the only data that it deals with is current data.

However, Data Warehouses’ work involves maintaining historical data and helps knowledge workers and other parties of an organization to further analyze to help in their decision-making process. 

Decision makers, analysts and data experts need to have quick access to Data Warehouses to help them live up to their job roles. 


What Data Warehouses Consist of?


In order to understand the benefits a Data Warehouse has on a business, we need to understand how a Data Warehouse actually works. 

The data stored in Data Warehouse needs to consist of reports, dashboards, analytic applications, and ad-hoc queries.

Data warehouses are made up of original raw copies of data or source data which can then:

  • Have more data than just real-time data to work with
  • Gather data from multiple sources which maximizes the quality 
  • Continuously be able to improve the quality of the data through coding and descriptions
  • Being able to correct errors in data, such as duplicated data 
  • Format data so that it can be easily used and improve query performance
  • Have a consistent data history that can be easily maintained
  • Improve other areas of the business such as CRM’s, sales, etc
  • Provide executives and stakeholders with a centralized view of the different type of data gathered and how it all relates


Why do you Need Data Warehouses?


Organizations come to a point where they realize that all their data is scattered in different places, they are unable to see how they correlate with one another and it becomes a timely process for analysts and others to figure it out to show executives and stakeholders. 

What you want is to have all your data in one place so that it can:


Serves as a Single Source of Truth


When all your data is stored and harnessed in one single centralized repository, with the correct maintenance and management it eliminates data quality issues, inconsistent data, inaccurate data reports and low query performance.




When data is programmed in a uniform format, not only does it make it consistent throughout but it also makes it easier for executives to make accurate decisions based on the shared data insights. Once data is in a standardized format regardless of the source, it drastically reduces risk and improves overall accuracy.


Make better decisions, faster!


Having all your data, reports and analysis located in one place you can easily run analysis on huge volumes of datasets. Not only do Data Warehouses improve the efficiency in access to datasets, but it makes it easier for people on the team to come to quicker decisions based on the insights derived. 


As your company grows, complexity grows


This is natural for any company that becomes more innovative and successful. This will lead to an increase in complexity of queries which analysts, executives and other users will require faster query processing. 




Data Warehouses is the tool an organization needs in order for them to have reliable and accurate stored data. Not only does it improve cross-organizational data access, but also for an organization to be able to monitor their performance, improve their decision-making process - all because they know their data is trustworthy.

Nisha Arya is a Data Scientist and Freelance Technical Writer. She is particularly interested in providing Data Science career advice or tutorials and theory based knowledge around Data Science. She also wishes to explore the different ways Artificial Intelligence is/can benefit the longevity of human life. A keen learner, seeking to broaden her tech knowledge and writing skills, whilst helping guide others.