ABTSRACT managers, directors, managers, and analysts – to

ABTSRACT

 

Business
Intelligence has become an indispensable element of most modern corporations in
order to increase profits and enable stakeholders to make better decisions.
Data Warehousing, also called Enterprise Data Warehousing, is an integral part
of business intelligence. A Warehouse in simple terms is a collection of data
gathered from
diverse sources that makes analysis
of data much easier. Most organizations these days are investing large amounts
of time and funds into Data Warehousing and Business Intelligence. This
paper attempts to explore the impact of Business Data Warehousing on companies
and how it has revolutionized daily functioning of businesses.

 

Keywords: Business Data Warehousing, Business Intelligence,
Data Analysis

 

 

 

 

 

 

 

 

 

 

1.     
Introduction

 

Business Intelligence and Data
Warehousing have become the buzzwords in recent times for firms trying to
escalate their profits and maintain useful data in an organized fashion. Business
Intelligence is a process that companies use to facilitate better decision
making and enhance business performance (Introduction to BI & DW, n.d.). “Data warehousing is a collection of
methods, techniques, and tools used to support knowledge workers – senior managers, directors, managers, and
analysts – to conduct data analyses that help with performing decision-making
processes and improving information resources.” (Golfarelli & Rizzi, 2009,
p.3).

 

2.     
Why
Business Data Warehousing

 

Business Data
Warehousing is being adopted by a growing number of businesses due to its manifold
benefits. Most data analysts find by experience that contrary to popular
belief, data and information are not synonymous. Data usually refers to raw,
unprocessed data. When data from various sources are collected and analyzed to
give meaningful insights, it is known as information. Data warehouses attempt
to gather data from relevant departments and process it to enable the
management to arrive at a well-informed and data backed conclusion.

 

A major advantage of Business
Data Warehousing is that it helps retain data history and consequently prevents
loss of useful data. Thus, in case a problem arises, data can always be dug
into to trace the cause of the issue. Additionally, it improves understanding of
business trends, helping one comprehend which products are more popular amongst
customers and which sectors of the company need to be worked on upon. Accumulation
of data in this manner also ensures a high degree of data quality as foul records
or bugs can be spotted and fixed easily. This reduces redundancy and errors in the
stored data to a large extent. Another benefit of Business Data Warehousing is
that it leads to refinement of query structures, which in turn increases
performance of the system by minimizing the time a query takes to give an
output.

 

 

 

 

 

 

 

 

 

 

3.     
Limitations
of Business Data Warehousing

 

Despite its benefits, Business
Data Warehousing is often not embraced due to various shortcomings. For
instance, it could lead to significant maintenance costs which can often exceed
the increase in profits and savings it entails (Thakur, 2016). Moreover, the ETL process involved can also
prove to be time consuming causing delays in the overall task of data analysis (Thakur, 2016). Adding to this is the issue of data
security, i.e., while gathering data from various departments, there is a possibility
of information leakage which is considered a serious threat in most firms (Thakur, 2016).

 

4.     
Business
Impact

 

As we can see, Business
Data Warehousing has several plus points as well a handful of disadvantages.
However, it can help anticipate future trends of a company’s sales and hence target
the right crowd accordingly. It can also make locating mistakes in the data
easier and therefore prevent major blunders from occurring. ETL processes which
are an integral part of Business Data Warehousing perform data cleansing and transformation,
which increases the consistency in data substantially. Thus we can conclude
that Business Data Warehousing is an incredible tool which, when used to its utmost
potential, can be of tremendous value to a company.