What is a Data Warehouse? A Comprehensive Guide For 2021


A data centre is a wide array of company records used to help make choices for an enterprise. In this article we will learn about what is a data warehouse, What is the concept of data warehousing, warehouse types, data warehouse implementation, and the advantages of the data warehouse.

  1. What is a data warehouse?
  2. How Data Warehouse Works?
  3. Data Warehouse components
  4. Warehouse types
  5. Stages
  6. What is a Warehouse of Data used for?
  7. Advantages and disadvantages of data warehouse

1) What is a data warehouse?

Data warehousing is a corporation or organization’s automated collection of a vast volume of material. Data warehousing is a critical component of market intelligence that uses business data analytical techniques.

IBM researchers Barry Devlin and Paul Murphy developed the idea of data warehousing in 1988. When computing networks grew more sophisticated and processed growing volumes of data, the need for warehousing data grew. A main data warehousing book is W. Building the Data Warehouse” Building the Data Warehouse,”

2) How Data Warehouse Works?

Through comparing data consolidated from several heterogeneous sources, data warehousing is used to offer greater insight into a company’s results. A data warehouse aims to query and analyze historical data obtained from transaction sources.

If the data has been integrated into the warehouse, as a data warehouse performs analytics on incidents that have already existed when reflecting on data updates over time, it does not change and will not be modified. It is important to store storage data in a way that is secure, accurate, easy to retrieve, and easy to handle.

3) Data Warehouse components

Data Warehouses have four components:

  • Load manager: The front part is sometimes called the load manager. It handles all the tasks related to the retrieval and processing of data into the warehouse. These tasks include improvements in the processing of data for integration into the Data Warehouse.
  • Warehouse Manager: The warehouse manager works out activities related to warehouse data processing. It performs operations such as data analysis to ensure accuracy, index and view construction, denormalization and aggregation generation, source data transformation and merging, and data archiving and baking-up.
  • Query Manager: The backend portion is also known as the Query Manager. It handles all the operations related to user query control. The functions of the elements of this Data Warehouse are direct queries to the necessary tables for scheduling query execution.
  • End-user control tools: These are grouped into five categories, such as

1. Reporting Data 

2. Tools for Question

3. Tools of Application Creation 

4. Tools from EIS, 

5. OLAP tools and tools for data mining.

4) Warehouse types

There are three major types of Data Warehouses (DWH):

1. Enterprise Warehouse for Data (EDW): A centralized warehouse is the Enterprise Data Warehouse (EDW). It offers enterprise-wide decision support services. It provides a cohesive plan for data organization and representation. It also offers the opportunity to identify and provide access to data by topic according to certain divisions.

2. Store for Operational Data: Operational Data Store, also known as ODS, includes nothing but data storage when neither Data Warehouse nor OLTP systems support the reporting needs of organizations. The data warehouse in ODS is updated in real-time. It is also commonly preferred for routine tasks, such as the preservation of employee information.

3. Mart of Data: A data mart is a subset of a warehouse of data. It has been developed specifically for a specific line of operation, such as sales, insurance, sales, or finance. Data can be obtained directly from sources in an independent data sector.

5) Stages

The following are stages of data warehouse (DWH) use:

  • Offline Database for Operations: Data is only copied from an operating system to another server at this point. In this way, the loading, processing, and reporting of the copied data does not affect the performance of the operating system.
  • Data Warehouse Offline: The data in the Datawarehouse is modified from the operational database regularly. To fulfil the objectives of Datawarehouse, the data in Datawarehouse is mapped and transformed.
  • Data Warehouse for real-time: Data warehouses are modified at this point if any transaction happens in the operational database. The airline or train booking system, for instance.
  • Data Warehouse Integrated: Data warehouses are regularly modified at this point when a transaction is carried out by the operating system. The Datawarehouse then creates transactions that are returned to the operating system.

6) What is a Warehouse of Data used for?

  • Airline: It is used for operational purposes in the airline system, such as crew assignment, route profitability review, frequent flyer program promotions, etc.
  • Banking: In the banking industry, it is generally used to efficiently control the resources available at the desk. Few banks have been used for market research, product performance measurement, and operations as well.
  • Healthcare: The healthcare industry has also used data warehouses to strategize and forecast performance, produce condition reports for patients, exchange data with tie-in insurance providers, medical assistance programs, etc.

7) Advantages and disadvantages of data warehouse

Benefits of data warehousing: A variety of major advantages are seen by companies that use a data warehouse to support their analytics and business intelligence:

  • Better data: Incorporating data sources into a data repository helps companies to ensure that consistent and appropriate information from that source is obtained. For sound decision making, this guarantees better data quality and data integrity.
  • Faster decisions: Data in a warehouse can be processed in such consistent formats. It also offers the analytical capacity and a more complete dataset to base hard facts on decisions. Decision-makers therefore no longer need to respond to hunches, incomplete data, or data of poor quality and risk slow and unreliable performance.

Disadvantages of data warehouse

  • Not an ideal choice for unstructured content.
  • Data Warehouse development and deployment is definitely a time-confusing affair.
  • Data Warehouse can be relatively easily deprecated
  • Changes in data types and ranges, data source schema, indexes, and queries are difficult to develop.
  • The data warehouse may seem simple, but for average users, it is actually too complex.
  • Despite the best project management efforts, the project reach of data warehousing will still increase.


In essence, a data centre incorporates data from many sources into one robust database. For example, a data warehouse in the business world might integrate customer information from the point-of-sale systems (cash registers) of a company, its website, its mailing lists, and its comment cards. Alternatively, it may include all employee information, including time cards, demographic information, wage information, etc.

A business can evaluate its customers more comprehensively by integrating all of this information in one location, ensuring that it has considered all the available information. Data warehousing also allows data mining, which is the process of searching for data trends that could contribute to greater revenues and profits.

If you are interested in making a career in the Data Science domain, our 11-month in-person Postgraduate Certificate Diploma in Data Science course can help you immensely in becoming a successful Data Science professional. 



Related Articles

Please wait while your application is being created.
Request Callback