Notes for A.4.4 Advantages of Data Warehousing - IB | RevisionDojo
A.4.4 Advantages of Data Warehousing Notes
Centralized Data Management
In traditional systems, data is often scattered across various departments and databases, making it difficult to access and analyze.
A data warehouse consolidates this data into a single, manageable structure, ensuring that all relevant information is readily available for analysis.
Example
A retail company might have sales data in one system, inventory data in another, and customer data in a third.
By integrating these datasets into a data warehouse, the company can easily analyze relationships between sales trends, inventory levels, and customer preferences.
Enhanced Query Performance
In transactional databases, running large-scale queries can slow down day-to-day operations.
However, data warehouses are optimized for read-heavy workloads, allowing users to perform detailed analyses without impacting operational systems.
This separation of analytical and transactional processes ensures that businesses can gain insights without compromising performance.
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What is a key advantage of centralized data management in data warehousing?
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Note
Centralized Data Management
In traditional systems, data is often scattered across various departments and databases, making it difficult to access and analyze.
A data warehouse consolidates this data into a single, manageable structure, ensuring that all relevant information is readily available for analysis.
AnalogyThink of a data warehouse like a library where all books (data) are organized and cataloged in one place, unlike having books scattered across different rooms in a house.ExampleA retail company might have sales data in one system, inventory data in another, and customer data in a third. By integrating these datasets into a data warehouse, the company can easily analyze relationships between sales trends, inventory levels, and customer preferences.
