Data Warehouse: The Foundation of Business Intelligence

Business intelligence (BI) will not function without a data warehouse. In the absence of such, BI tools will have nowhere to pull data from. If there is no data, there can be no analysis; which in turn leads to very risky business decisions because of lack of analytical basis.

If money is the fuel of business, data is the fuel of business intelligence. Just like fuel, data is a precious commodity; hence, it must be kept in secure containers for when it is time to use them. That’s where data warehousing comes in. However, securing data is not just its sole purpose.

Business intelligence, as a whole, is a huge digital machinery with several parts vital to its completion. Let us dive deeper into the backbone that supports everything related to business intelligence – its foundation, the data warehouse.

What is a Data Warehouse and what is it used for?

Business intelligence (BI) is the ability to analyze data (using tools) to make logical and beneficial business decisions. However, for these tools to their job, they must work together with a data warehouse.

A data warehouse is a “warehouse” intended to store large quantities of valuable information from regular activities of a business. These information also include historical data from the past years of business operations. Furthermore, this warehouse acts as a central repository of data from multiple sources such as CRMs, ERPs, files, APIs, and more.

Data that are stored in a warehouse must be accurate, error-free, and structured. To do this, they pass through an ETL (extract-transform-load) tool.

Why is Data Warehouse important?

Large companies do not make decisions out of guesswork. They always need data-driven and concrete basis. Business intelligence is the guiding light of businesses in making these crucial decisions.

BI tools use structured historical data pulled out from data warehouses to perform ad hoc analysis. The results of these analysis provide invaluable insights to business analysts and decision makers.

Purpose and Benefits of a Data Warehouse:

  • Integrates all data from multiple sources.
  • Provide answers to important business questions through data analytics.
  • Maintains historical data of all business activities for future use.
  • Helps businesses make informed decisions through data.
  • Improves overall accuracy of data and promotes data consistency.
  • Allows decision-makers to examine the efficacy or deficiencies of past actions and adjust the strategies accordingly.

Final Words

Are you ready to take your business management to a whole new level? Taking advantage of business intelligence is the key to the growth that you have always wanted for your business.

Do you have questions about this? Talk to one of our CyberLife agents and discover how this technology can open up worlds of opportunities for your business.

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