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Data Warehousing is a Game Changer for SMBs

Data Warehousing is a Game Changer for SMBs

July 3, 2023

Most businesses create and hold a lot of data, much of which goes underutilized. Thanks to improved developments in data analytics and business intelligence, more businesses can take advantage of their data to make better decisions and improve operations, thereby increasing profits in the process. At the heart of these developments is data warehousing.

Explaining Data Warehousing

Data warehousing is the process of collecting data from all parts of your business to provide analysts and business owners with more opportunities to learn more about how the business operates. You need a lot of data to make this happen, and it needs to come from all parts of your business, meaning that the system you use to manage it all must be fairly sophisticated.

The data warehouse must be the center of a business intelligence platform, making it crucial to any successful BI and data warehousing strategy. The more you think about your data warehousing strategy, the better insights you’ll be able to glean from the initiatives.

Data warehousing is much more than just copying your data, though. It needs to provide the most up-to-date information on your business’ systems at a moment’s notice. With a continuous stream of data flowing into your business intelligence system, you’ll be able to make the best decisions at any time.

What Does Data Warehousing Look Like?

The best way to think about a data warehouse is to think of it like a village water system. Just like clean water is pumped in, stored, and distributed, so too is your business’ data. The warehouse is essentially a repository for it all, and it can be called upon at will. There are four main components of a data warehouse, including the following:

  • Load manager: This is the part of the warehouse responsible for getting the data into the warehouse. Your data won’t be compatible by default with your BI and analytics systems, so the load manager will have some work to do to convert the non-compatible information into a format you can actually use.
  • Warehouse manager: The warehouse manager is responsible for managing data stored in the warehouse. This entails making sure the data remains consistent, redundant, archived, and backed up.
  • Query manager: The query manager is responsible for executing commands provided by the end user.
  • User interface: This is where the various tools used by your organization will access the data warehouse.

Insights Will Always Be Valuable for Businesses

Whether you are a big or small business, regardless of industry, your business will always benefit from having greater insights into what is performing well and what is performing poorly. If you want to get the most out of your business, improve processes, and maximize profits, then understanding trends in your data via insights will be crucial.

How Your Business Can Benefit from a Data Warehouse

Once you have your data warehouse ready to go, your analysts can start working with your BI or BA platforms to help you better understand how your business operates. This might include getting a closer look at your processes, learning how your customers interact with marketing initiatives, or developing strategies to help your business perform better. Ultimately, data warehousing isn’t just recommended for businesses—it’s essential if you want to compete in an ever-changing marketplace.

First Column IT can equip your business with the tools it needs to leverage business intelligence and analytics. To learn more, call us today at (571) 470-5594.

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