The purpose of data warehousing is to provide a centralized and integrated repository of data that is designed to support business intelligence and decision-making activities. Data warehousing involves the process of collecting, storing, and managing data from a variety of sources in a way that makes it easy to analyze and extract insights.
Data warehouses are typically designed to support analytical queries and reporting, rather than transaction processing. They often include data from multiple sources, such as transactional systems, external data sources, and other operational databases.
The main benefits of data warehousing include:
Centralization: Data warehousing provides a single, centralized source of data that can be accessed by multiple users and applications. This can help to improve data consistency and reduce data redundancy.
Integration: Data warehousing allows data from multiple sources to be integrated into a single repository, providing a holistic view of the organization's data.
Historical analysis: Data warehouses typically store historical data, allowing analysts to analyze trends and patterns over time.
Performance: Data warehouses are designed to support complex analytical queries, which can be executed quickly and efficiently.
Business intelligence: Data warehouses are often used as a foundation for business intelligence and reporting, providing decision-makers with the insights they need to make informed decisions.
In summary, data warehousing provides a centralized, integrated, and historical view of an organization's data, making it easier to analyze and extract insights that can support business intelligence and decision-making activities.