What Is a Data Warehouse?

What Is a Data Warehouse?

Data Warehousing is one of the hottest topics both in business and in data science but if you’re new to the field you’re probably wondering what a data warehouse? why we need it and how it works?

Data Warehouse

Don’t worry because in four minutes you’ll know the answers to all these questions alright first let’s start with the definition what is the meaning of the phrase single source of truth in Information Systems Theory the single source of truth is the practice of structuring all the best quality data in one place let’s look at a very simple example surely it has happened to you to work on a file and to create many different versions of it how do you name such a file well once you are done you often place the word final at the end this results in having a bunch of files with extensions final or my favorite really final final if this is you you are not alone it seems that even corporations never know where the most recent or most appropriate file is but what if you knew that there is one single place where you would always have the single source of information that would be quite helpful wouldn’t it well a data warehouse exists to fill that need so what is a data warehouse exactly it is the place where companies store their valuable data assets including customer data sales data employee data and so on in short a data warehouse is the de-facto single source of data truth for an organization.

It is usually created and used primarily for data reporting and analysis purposes there are several defining features of a data warehouse it is subject oriented integrated time variant non-volatile summarized let’s quickly go through these one-by-one subject oriented means that the information in the data warehouse revolves around some subject therefore it does not contain all company data ever but only the subject matters of interest for instance data on your competitors need not appear in a data warehouse however your own sales data will most certainly be there integrated corresponds to the example from the beginning of the video each database or each team or even each person has their own preferences when it comes to naming conventions that is why common standards are developed to make sure that the data warehouse picks the best quality data from everywhere this relates to master data governance but that is a topic for another time time variant relates to the fact that a data warehouse contains historical data too as said before we mainly use a data warehouse for analysis and reporting which implies we need to know what happened five or ten years ago non-volatile implies that the data only flows in the data warehouse as is once there it cannot be changed or deleted summarized once again touches upon the fact that the data is used for data analytics often it is aggregated or segmented in some ways in order to facilitate analysis and reporting all right so that’s what a data warehouse is a very well structured and non-volatile de facto single source of truth for a company if you enjoyed this video don’t forget to hit the like button and share it with your friends and if you’d like to become an expert in all things data science ,thanks and good luck.

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July 1, 2020 at 3:07 PM ×

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