Advantages and Disadvantages to Using a Data Warehouse
There are a large number of obvious advantages involved with using a data warehouse. As the name suggests, a data warehouse is a computerized warehouse in which information is stored.
The organization that owns this information can analyze it in order to find historical patterns or connections that can allow them to make important business decisions. In this article I will go over some of the advantages and disadvantages that are connected to data warehouses.
One of the best advantages to using a data warehouse is that users will be able to access a large amount of information. This information can be used to solve a large number of problems, and it can also be used to increase the profits of a company. Not only are users able to have access to a large amount of information, but this data is also consistent. It is relevant and organized in an efficient manner. While it will assist a company in increasing its profits, the cost of computing will greatly be reduced. One powerful feature of data warehouses is that data from different locations can be combined in one location.
There are a number of reasons why this is important. When data is taken from multiple sources and placed in a centralized location, an organization can analyze it in a way that may allow them to come up with different solutions than they would if they looked at the data separately. Data mining is connected to data warehouses, and neural networks or computer algorithms are responsible. When data is analyzed from multiple sources, patterns and connections can be discovered which would not be found otherwise. Another advantage of data warehouses is that they can create a structure which will allow changes within the stored data to be transferred back to operational systems.
However there are a number of disadvantages that need to be mentioned as well. Before data can be stored within the warehouse, it must be cleaned, loaded, or extracted. This is a process that can take a long period of time. There may also be issues with compatibility. For example, a new transaction system may not work with systems that are already being used. Users who will be working with the data warehouse must be trained to use it. If they are not trained properly, they may choose not to work within the data warehouse. If the data warehouse can be accessed via the internet, this could lead to a large number of security problems.
Another problem with the data warehouse is that it is difficult to maintain. Any organization that is considering using a data warehouse must decide if the benefits outweigh the costs. Once you have paid for the data warehouse, you will still need to pay for the cost of maintenance over time. The costs involved with this must always be taken into consideration. When it comes to storing information, there are two techniques which are used. The first is called the dimensional technique. When the dimensional technique is used, information will be stored within the data warehouse as facts. These facts will take the form of either text or numerical information.
Data which is stored with the dimensional technique will contain information which is specific to one event. The dimensional technique is useful for workers who have a limited amount of information technology skills. It makes the data easy for them to study and understand. In addition to this, data warehouses that use the dimensional technique tend to operate quickly. The biggest problem with the dimensional technique is if the company decides to change the way it conducts business, it will be difficult to change the data warehouse to support it. The second technique that is used storing data is called database normalisation. With this technique, the data is store in a third normal form. While adding data is easy, producing reports can be tedious.
Data warehouses are an important tool today, and more companies will begin using them in the future. Companies that use data warehouses need to have detailed information that is related to the transactions that take place within the group. When a company is able to analyze detailed information that is related to its own operations, the company can make strategic decisions.
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