Definition
Data warehousing or electronic storage involves the collection and storage of data for further use that can allow business management to get valuable insights. As part of this process, businesses gather and store large amounts of important data and information. It acts as an important input for business intelligence systems that work on further data analysis.
Example
The main steps involved in data warehousing are:a. Data extraction, in which large amounts of data is gathered from multiple sources.b. Data clean-up, where data has to go through a cleaning process to check and correct any errors.c. Data conversion then happens, and the data format is modified for better usage.d. After the data is converted, it is stored in a warehouse and consolidated for further usage.
Why it matters
Data warehousing can offer multiple benefits to companies. Companies that can successfully carry out data warehousing can gain a competitive edge over their competitors. This is because data warehousing enables easier decision-making to tap onto new customers, new demands, and new trends.It also can allow more efficiency in business decision-making by providing interconnected, historical, and granular data. It allows management to get a clear view of the overall business. Finally, data warehousing can be cost-effective as it does not require substantial IT support.