Why Businesses Turn To Data Warehousing For Better Decision Making
Today, data warehouses are integral to every company’s business strategy. Using them effectively would enable organizations to make smarter business decisions. And for that to happen, the company must have access to reliable data in an organized manner. Data warehousing typically refers to leveraging technology, including reporting systems and analytics, to gather, store, and manage data. It would offer companies with quality access to data and, with it, a world of other benefits, such as the ones listed below:
- Cost-effectiveness: Gathering and maintaining data in silos is not only a cumbersome task but also a costly undertaking. This problem is further intensified if the on-premises infrastructure is used for storing said data since the company is also responsible for the upkeep of the said infrastructure and updates — this is, of course, a cost-heavy endeavor. Cloud data warehouses eliminate all these costs and responsibilities, thus ensuring high levels of cost-effectiveness.
- Informed decisions: For a business to run effectively and efficiently, countless decisions must be made daily. Imagine if these decisions had to be made without any insights about the most crucial aspects of the operations — bound to result in catastrophe. Thankfully, this does not have to be a problem that businesses have to fret about when they have a data warehouse in their arsenal. It is because the DWH can collate and analyze extensive amounts of data to glean insights about the target market, customers, and other relevant factors such as trends.
- Competitive advantage: Yet another crucial way data warehouses have proven to businesses in this day and age is by providing extensive insights. You see, insights are the foundation of success for any company, no matter the industry in which it may operate. So, how do data warehouses help with empowering businesses with insights? Well, with all of a business’s data, i.e., encompassing data sourced from various sources, stored in a data warehouse, it becomes that much for the company to understand its competition among other things, better. Such information facilitates informed decisions in the business’s best interest, including strategies that may give it an edge over its rivals in the market.
- Scalability: In this day and age, the need for scalability is decidedly not news, especially not for businesses that intend to stay ahead of the curve. It holds in the context of data as well; i.e., just as a business’s operations can experience changes, so can its data and related requirements. So, say, a company’s operations necessitate that more data be gathered and analyzed. A cloud data warehouse would come in very handy.
Unless you have been living under a rock, you know that technology has evolved considerably over the past few decades. It has ushered in various changes, demands, expectations, and tools to help companies cope with the former. Data warehousing is now comfortably among the leading technology-driven solutions, and the above discussion shows precisely why. What also makes data warehouses so popular today is that it is not relevant for just one or maybe even a handful of types of businesses: data warehouses can be and are being used by everyone, starting from brick-and-mortar retailers to hotels and casinos. So, if you too are ready to put this handy tool to work for you or are simply wondering about how to build a data warehouse, we recommend that you engage the services of a trusted service provider and get started ASAP.