Data Warehouse emerged around the 1980s as a concept to establish a database model. Over the years, this tool has been used in business management systems, precisely because it is able to store and organize a large amount of data.

In this text, we’ll explain a bit more about how the Data Warehouse works and how it can help a business. Learn about it!

What is Data Warehouse?

Curiously, this tool does exactly what it says in its name: a database in which you store and organize information. Besides being stored, they are also cataloged according to subject and integrated into a single system.

How can companies use it?

In general, companies can use the Data Warehouse as a raw data filter. That is, when using this database, it is important to understand that the information collected by it will undergo a modification process before being stored.

Raw data (which may belong to other databases) is collected, assessed and standardized in order to be located in one place. That way, the company has access only to relevant information, since all data has already been analyzed.

What are the advantages of using Data Warehouse?

Now that we understand what Data Warehouse is and how it can be used in a company, we’ll learn about its main advantages.

Stability

It is not uncommon to find data systems in which the information contained in it undergo some kind of modification. This can happen for several reasons: errors of the tool itself or because someone had to carry out some procedure.

However, in a Data Warehouse, by default, the data is filtered and presented with no possibility of change before being used. As such, there is stability to what is presented.

High integration capacity

The Data Warehouse system has as one of its main characteristics the integration capacity. Here, the tool is able to incorporate data from multiple systems so that they become standardized. Therefore, it is possible to analyze them in a single report without any difficulties.

Overview

Another benefit is offering an overview of the information collected. As the data is filtered, they become simpler and error-free. Management gains the possibility of making better projections and planning for the company’s activities.

Decision-making

This is one of the greater advantages of using Data Warehouse: its ability to assist in the decision-making. As it will present accurate and filtered data organized according to the sector, at the time of important choices, such as defining a new strategy or cutting costs, the manager will only have to access them to decide.

The tool will bring strategic information and decisions may be made based on the truth – not just intuition.

In this text, we saw how Data Warehouse is a crucial tool for any company that needs to store and manage its information in order to extract what is needed for its decision-making.

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