Quite simply, a data warehouse stores all current and historical information from internal and external sources so that companies can better use and analyze the data quickly. A data warehouse is different than a simple database because it aggregates information from all different sources, saving you time from having to collect data from multiple databases.
Data warehousing allows you to make faster and better decisions. By combining multiple sources of data in one location, you can not only reduce processing time but increase the amount of data you analyze, thus allowing you to get better insights at a faster rate. Quite simply, data warehousing can lower your costs, provide you with more sales generating opportunities and increase revenues.
Data warehouses are built to be more secure because all of your data now sits in one location, allowing you to better manage who has access to the data. Furthermore, data warehouses are highly scalable and customizable to your organization’s needs. As your company grows, so can your data warehouse.
Data warehouse is the core of business intelligence. All facts from marketing, sales, customer behavior, operational databases, supply chain and other departments can be stored in one secure place. Data warehouse is a single source of truth for all stakeholders. It has scalability features to accommodate Big Data and scales to thousands of nodes. After data is stored, data warehouses allow business stakeholders to execute data analyses and find answers to their questions. Such answers would require a human to process terabytes of data, an impossible task for people, but a doable for computers. Typical data warehouses can store business data from several years of operation and allow you to consider all facts in decision making. Decisions that have fully considered all facts are better and drive revenues.
Independent case studies of data warehousing conclude the ROI of data is high and is the primary reason for building a data warehouse.