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What Are The Advantages Of A Data Warehouse & Why Is It Worthwhile?

Simply put, a data warehouse is a system for storing data and producing reports. Input data is usually taken from different systems and then stored in the data warehouse for long-term storage and data analysis. The repository is structured in such a way that users in different parts of the company can access, analyze and evaluate content as required.

The data warehouse solution is used for analytical purposes, i.e. to extract data as an analytical application that supports and simplifies decision making and reporting for users in a wide variety of areas. Data warehouses also act as databases and archives, providing historical data that is no longer managed in enterprise systems. DWH is also a repository for data mining techniques, among other things.

Advantages Of A Data Warehouse

Below are some of the advantages of a data warehouse:

The Data Warehouse Provides Better Business Information

The data warehouse allows you to access, analyze and evaluate data from different sources. This way, data is not limited to a specific area, enabling business owners to make better and smarter business decisions.

The data warehouse and associated business intelligence processes can be directly applied to inventory management, financial management, sales and marketing.

The Data Warehouse Ensures Data Quality And Consistency

The data warehouse enables the transformation of data into a common, standardized format. Standardization of data and output formats ensures that different departments in the company get the same results without differences. This enables companies to work more accurately and consistently and make sustainable and reliable decisions.

The Data Warehouse Solution Saves Time And Money

When a company stores all of its data in one place, rather than in multiple databases, it saves time when accessing individual data sets. Key decisions can be made faster and more efficiently, and employees no longer have to spend time analyzing unstructured business data from different sources.

No specific data skills are required to query data from the data warehouse. It also eliminates the need to manage multiple channels, which is cost-effective. The data warehouse allows the business to move forward at any time, without delay and without relying on external sources.

The Data Warehouse Allows You To Check Historical Data

As the company’s historical data is stored in the data warehouse, users can always have an overview of the company’s processes and developments. This allows companies to track key data at different points in time and make informed predictions for the future based on the data warehouse. This can give companies a competitive advantage.

Data Warehouses Provide A Better Return On Investment

Statistics show that companies that invest in the implementation of a data warehouse and associated business intelligence systems generate higher income and save money in every business process.

Why Is A Data Warehouse Worthwhile?

Building a data warehouse is expensive and time-consuming to maintain. But it is worth the investment. The advantages of a data warehouse are:

  • A single central access point to the entire data warehouse, instead of individual users having to access dozens or even hundreds of systems and databases.
  • Data quality is guaranteed.
  • Transparent history of content stored in the data warehouse.
  • For security reasons, everyday operating systems should be separated from analytical systems.
  • Common semantics for all content and data, e.g. common nomenclature, codes for different product types, languages and currencies.

By storing the entire data set in structured reports, a data warehouse solution can answer a number of complex economic questions, such as

  • What was the monthly turnover of each product line over the last ten years, broken down by city and state?
  • What is the average cost of a transaction at one of our ATMs, broken down by time period and total customer capital?
  • What is the turnover rate among branch employees who have worked at least three years in the past year?
  • How many hours did these employees work per week?


Whether you’re looking to implement a new on-premises or cloud-based data warehouse solution, or improve the performance of an existing solution, investing in a data warehouse consulting team can be worthwhile. They can help you leverage your data and turn it into reliable and actionable information that drives business success!


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