DATA BASE AND DATA WAREHOUSE

A database is an organized collection of data that is structured and stored in

a way that allows for efficient retrieval, manipulation, and management.

USES OF DATABASES

 Can be stored large volumes of data in one place.

 Can be used to read and modify data at the same time by multiple users.

 Database are used to search and sorted data, so that the data you need
can be found quick and easily.

 Improve business processes. Companies collect data about business

processes, such sales, and order processing and customer service. They
analyze that data to improve these processes, expand their business and
grow revenue.

 Keep track of customers. Databases often store information about people,

such as customers or users. For example, social media platforms use
databases to store user information, such as names, email addresses and
user behavior. The data is used to recommend content to users and
improve the user experience.

 Secure personal health information. Healthcare providers use databases

to securely store personal health data to inform and improve patient care.

 Store personal data. Databases can also be used to store personal

information. For example, personal cloud storage is available for
individual users to store media, such as photos, in a managed cloud.

ADVANTAGES OF DATABASE

 Support multiple users: DBMS allows multiple users to access the

same database at a time without any conflicts.

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 Shared data: Data can be shared between authorized users of the
database in DBMS. All the users have their own right to access the
database. Admin has complete access to the database. He has a right to
assign users to access the database.

 Increased data security: DBMS provides the ability to control users and
enforce policies for security and compliance management. This controlled
user access increases the database security and makes the data less
vulnerable to security breaches.

 Data integration: DBMS allows users to gain a centralized view of

databases spread across multiple locations and manage them using a
single interface rather than operating them as separate entities.

 Streamlined backup & recovery mechanism: Most databases have

built-in backup and recovery tools. Yet, DBMS offers centralized tools to
facilitate backup and recovery functionality more conveniently and
thereby provide a better user experience.

 Increased end-user productivity: The availability of data, combined

with the tools that transform data into usable information, empowers end
users to make quick, informed decisions that can make the difference
between success and failure in the global economy.

 Reduced Redundancy: Data redundancy is a condition created within a

database or data storage technology in which the same piece of data is
held in two separate places. In DBMS, all the files are integrated in a
single database. So, there is no chance of duplicate data.

 Improved decision making: Better-managed data and improved data

access make it possible to generate better-quality information, on which
better decisions are based. The quality of the information generated
depends on the quality of the underlying data.

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 Minimized data inconsistency: Data inconsistency exists when
different versions of the same data appear in different places. In DBMS,
data is stored in a single database so data becomes more consistent in
comparison to file processing systems.

Data warehousing: The process of data collection from various sources

and managing it to provide valuable business insights.

BENEFITS OF A DATA WAREHOUSE

Organizations have a common goal to make better business decisions. A

data warehouse, once implemented into your business intelligence
framework, can benefit your company in numerous ways. A data warehouse:

1. Centralized Data Storage: A data warehouse integrates data from

various sources across the organization into a single repository. This
centralized storage makes it easier to access and analyze data from
different departments and systems.

2. Improved Data Quality: Data warehouses often include data cleaning

and transformation processes. This enhances data quality by removing
inconsistencies, errors, and duplicates, ensuring that users work with
accurate and reliable information.

3. Enhanced Data Analysis: Data warehouses provide tools for advanced

analytics and data mining. Analysts can explore historical and current
data to identify trends, patterns, and insights that can inform strategic
decisions.

4. Historical Data Preservation: Data warehouses store historical data

over time, allowing organizations to track changes, observe trends, and
conduct long-term analyses. This is particularly useful for identifying shifts
in customer behavior or market trends.

5. Business Intelligence: A data warehouse serves as a foundation for

business intelligence (BI) initiatives. It empowers users to create

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 dashboards, reports, and visualizations that help in monitoring
performance, evaluating strategies, and making data-driven decisions.

6. Faster Query Performance: Data warehouses are designed for efficient

querying and reporting. They employ techniques like indexing and pre-
aggregation, which result in faster response times compared to
transactional databases.

7. Scalability: Data warehouses can handle large volumes of data, making

them suitable for organizations with massive datasets and growing data
needs.

8. Support for Decision-Making: A data warehouse facilitates strategic

decision-making by providing a comprehensive view of business
operations. Decision-makers can access relevant data across
departments, enabling well-informed choices.

9. Time Savings: With data consolidated and pre-processed, users spend

less time searching for and transforming data, allowing more time for
analysis and strategic planning.

10. Regulatory Compliance: Organizations can ensure compliance with

data governance and privacy regulations more effectively by managing
and securing data in a controlled environment.

11. User-Friendly Interface: Many data warehouse systems offer user-

friendly interfaces and tools that allow non-technical users to create
reports, queries, and visualizations without requiring deep technical skills.

12. Competitive Advantage: Utilizing a data warehouse to gain insights

from historical and current data can lead to a competitive edge in terms
of better understanding customer preferences, identifying market
opportunities, and making agile decisions.

13. Delivers enhanced business intelligence: By having access to

information from various sources from a single platform, decision makers

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 will no longer need to rely on limited data or their instinct. Additionally,
data warehouses can effortlessly be applied to a business’s processes, for
instance, market segmentation, sales, risk, inventory, and financial
management.

14. Saves times: A data warehouse standardizes, preserves, and stores

data from distinct sources, aiding the consolidation and integration of all
the data. Since critical data is available to all users, it allows them to
make informed decisions on key aspects. In addition, executives can
query the data themselves with little to no IT support, saving more time
and money.

15. Enhances data quality and consistency: A data warehouse

converts data from multiple sources into a consistent format. Since the
data from across the organization is standardized, each department will
produce results that are consistent. This will lead to more accurate data,
which will become the basis for solid decisions.

16. Provides competitive advantage: Data warehouses help get a

holistic view of their current standing and evaluate opportunities and
risks, thus providing companies with a competitive advantage.

17. Improves the decision-making process: Data warehousing

provides better insights to decision makers by maintaining a cohesive
database of current and historical data. By transforming data into
purposeful information, decision makers can perform more functional,
precise, and reliable analysis and create more useful reports with ease.

18. Enables organizations to forecast with confidence: Data

professionals can analyze business data to make market forecasts,
identify potential KPIs, and gauge predicated results, allowing key
personnel to plan accordingly.

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19. Streamlines the flow of information: Data warehousing facilitates
the flow of information through a network connecting all related or non-
related parties.

Data Warehouse Database

Designed to analyze data Designed to record data

Stores summarized data Stores detailed data

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Uses Online Analytical Processing . Uses Online Transactional Processing
OLAP OLTP

Allows users to analyze business Performs fundamental business operations

data and transactions

Data must be refreshed when

Data is available in real-time
needed

Subject-oriented data collection Application-oriented data collection

Draws data from a range of other

Limited to a single application
applications