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In today’s world, Data is everything. Have you ever wondered what the teams at your company are doing? To watch out for and assess the performance of a company periodically, we need data. But what if there is not enough proper data to analyze? This is when Data Warehousing acts as a lifeline for organizations. 

What is Data Warehousing?

Before delving deeper into Data Warehousing, first let’s understand what is a Data Warehouse, what are its components, and what characteristics it possesses. Similar to a warehouse which is used for storing raw materials and goods, a Data Warehouse is nothing but a centralized location where all your enterprise data like your desperate database system and file system get stored for further analysis. 

Data Warehousing is the process of collecting and managing data from multiple sources and storing it in a single, centralized repository. It is used to store large amounts of historical data, which can then be used for business analysis and decision-making. It allows companies to have a unified view of their data which can help them understand current trends and make better decisions.

How can Data Warehousing enhance Businesses?

The company's workflow is maintained by several teams, including HR, Development, Testing, Designing, Marketing, and Sales. If anything goes wrong such as a poorly performing marketing campaign or a slow sales month, then how can a company identify where they are lagging? To resolve this issue, it may be necessary to have a better understanding of each stage of the process by identifying steps that need to be modified and by figuring out which ones are working well. 

Data Warehousing facilitates the gathering, analyzing, tracking, and evaluating of data from business processes. As opposed to Database, which is intended to record data, Data Warehousing is intended to analyze data. One can access data from different sources in a single place called a Data Warehouse which saves time in retrieving data. Identifying the places where they are falling behind, helps them to predict future trends in advance.

How does Data Warehousing Work?

By collecting data from multiple sources such as customer surveys, web analytics, point-of-sale transactions, and social media, Data Warehousing works around various sectors. The whole data Warehousing process can be divided into three different stages. The following processes make up the normal workflow of a data warehouse.


At this stage, data which is in its raw form is collected from the source system and stored in a layer called a staging layer. And this process is done by the ETL method which involves extraction, transformation, and loading of the data. There are various tools to enable ETL for a Data Warehouse but it is done by following the steps listed below.


Extracting data from various source systems such as relational databases, transaction systems, and flat files.


Transforming the data into a consistent format that can be stored in the data warehouse. This may involve cleansing the data, combining data from various sources, and aggregating data. 


Data loading involves the process of packing up all the data and moving it to a specific Data Warehouse.


Data that has been transformed to a warehouse format is put through steps like consolidation and summarizing to make it simpler and more organized to utilize. More data is uploaded to the warehouse over time when sources are updated.


The final step is to analyze the kind of data we want which has come from the disparate systems in their raw form. Transformations can be done at this state to shape the data in a form in which businesses can draw some useful insights from it. 

Components of Data Warehouse

Along with ETL tools, metadata, and access tools, still other components comprise a typical Data Warehouse. These parts are all designed to work rapidly so you may examine data as it goes and receive results quickly.

Warehouse Database

The structure of the Data Warehouse is built on a database that is used to help manage warehouse operations and ensure efficient workflow. Warehouse Database is specifically designed to store and track data that can be used for future analysis. Some of them include Cloud-based, Typical, and Analytics Database.

ETL Tools

ETL tools remain the core elements of the Data Warehouse. They aid in extracting data from multiple sources and transforming and loading it into the Data Warehouse. Other functions like filling and distributing data from the central repository to Business Intelligence apps are also possible.


Metadata describes a set of data and can include information such as the name of the data set, its size, its format when it was developed, who developed it, and any other relevant information. It helps to ensure that data is used correctly and is accessible to people who need it.

Access Tools

Using access tools, users can interact with the data in your data warehouse. Access tools include data mining, Online Analytical Processing, query, and reporting tools, and application development tools. Companies that employ data warehouses typically can't deal with databases without the aid of tools unless they also have access to database administrators.

Reporting Layer

The BI interface or BI database architecture can be accessed by end users through the reporting layer in the data warehouse. The data warehouse's reporting layer serves as a dashboard for data visualization, generates reports, and extracts any necessary data.

Data Warehouse Bus

It is one of the essential elements of a data warehouse. The warehouse bus, which has a data mart, depicts the data flow in a data warehousing bus system. It is a level that facilitates data transmission and is also used to separate data created for a certain group.

Types of Data Warehouse

Data warehousing can be used for many things, including reporting, analytics, and decision-making. Although there are many different types of data warehouses, each type has distinctive characteristics and uses. Here are a few of the most common forms of data warehouses.

Enterprise Data Warehouse

Enterprise Data Warehouse is designed to support the entire organization and is typically used for strategic decision-making. It is usually centralized and allows data from multiple sources to be accessed and analyzed. It is often used for reporting, analysis, and integration with other systems. No matter where the data comes from or which team or department will use it, an enterprise data warehouse is used to store and report all of a company's data.

Operational Data Warehouse

An Operational Data Warehouse helps to support specific business operations, usually on a daily or weekly basis. It connects to numerous data sources and collects information at one location. In most cases, a real-time operational data store stores and processes data. It is used for transaction processing and the integration of data from multiple sources. 

Data Mart

Data Mart is a specialized type of Data Warehouse that concentrates on one topic or area of business. It is used to store and analyze data related to a specific business sector. Users can access data and discover insights more quickly when using a data mart since they don't have to spend time manually combining data from several sources or searching inside a more complicated data warehouse.

Use Cases of Data Warehousing  

The following use cases show how technology like Data Warehousing might benefit your company.

Business Intelligence

Data Warehousing is used to obtain insights into business performance. Data Warehouses enable businesses to analyze customer behavior and trends, making it easier to identify opportunities and risks.

Data Integration

Data Warehouses are used to store data from different sources and integrate it into a single repository. This allows businesses to access and analyze data from multiple sources in one place.

Data Mining 

Data Warehouses enable businesses to mine data to identify patterns and relationships. This helps them to better understand customer behavior and trends, as well as identify potential opportunities and risks.

Customer Segmentation

Data Warehouses allow businesses to segment customers based on their attributes or behaviors. This helps them to better understand the needs of their customers and target them with tailored products or services.

Personalized Marketing

Data Warehouses can be used to create personalized marketing campaigns. By analyzing customer data, businesses can identify the most effective messages and tailor them to individual customers.

Industries that use Data Warehousing

Every sector regardless of the industry it operates in or how big or small it is needs a data warehouse to connect its different sources for predicting, analysis, reporting, business intelligence, and aiding sound decision-making. A few of the following industries have already begun to adopt data warehousing.


By providing real-time insights into customer satisfaction and a better understanding of customer preferences, data warehousing helps airlines identify opportunities for revenue growth. 


Banks use a variety of technologies and run a variety of applications. It would be significantly quicker to collect and evaluate data if all financial information was housed in a single system which is done by Data Warehousing.


In the Healthcare sector, Data Warehouses are used to plan and forecast results, provide patient treatment reports and communicate data with affiliated insurance firms and medical aid services.

Public Sector

Data warehouses are utilized for intelligence collection in the public sector. It aids in the upkeep and analysis of each person's tax data and health insurance records by government authorities.

Investment and Insurance Sector

Data Warehouse can be an invaluable tool for any Investment and Instrument firm. It helps firms manage and monitor their portfolios by making more informed decisions on investments, trading strategies, and risk management.

Retail Chain

Data warehouses are frequently used in retail chains for distribution and marketing. It also aids in keeping track of products, consumer purchasing trends, promotions, and pricing policies.


In telecommunications, Data Warehouses help to foresee potential issues and take preventive measures in numerous ways like promoting products and making sales and distribution decisions.


Based on customer feedback and travel habits, this industry uses warehouse services to plan and predict the locations for its advertising and promotion efforts.

Why should you do Data Warehousing?

There are so many reasons why you should consider Data Warehousing. To name a few, it uses its analysis to help organizations find areas for improvement, better their operations, and stay abreast of the most recent trends and technologies. The following are some of the main traits that set it apart from other forms of databases.


Data Warehousing helps to combine data coming from various systems in a common format which offers better analysis. This makes it easier for query tools and analytics to access the data to generate meaningful insights.


Data Warehouses are designed to store data that is specific to a particular subject. This makes it possible to analyze the data in relation to a particular business process or line of business.

Time Variant 

Data Warehouses are designed to store data over time which allows users to analyze data across different time periods. If we want to analyze employees’ performance of a company for the past ten years, then it can be done with the data accumulated in a Data Warehouse.


Data Warehouses can store data in a way that prevents it from being changed or updated. It ensures that the data remains consistent over time and is not affected by changes in the source systems.

Collaborate With Us For Data Warehousing

Data warehouses are becoming more and more crucial as businesses look for ways to use their data most effectively. There are many options available, but choosing the ideal data warehouse for your purposes can be challenging which is why Maticz, the leading Software development company is there to help you. Get in touch with our experts to talk about your challenges and take your business to the next level by integrating the Data Warehouse of your choice.

Related Article: Data Migration

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