IT Management

Data Warehousing and Data Mining

Data warehousing is a useful tool for many companies because it creates an easily accessible permanent central storage space that supports data analysis, retrieval, and reporting (Rosencrance, 2011). Five benefits of using data warehousing include delivery of enhanced business intelligence, saving time, heightened and consistent data quality, ability to access previous information, and a high return of investment. Ultimately, data warehousing is ideal for businesses that make important decisions without consulting data. Creation of a data warehouse makes it simple for business professionals to consult various aspects of their business’s history, ranging from marketing information to profits and inventory needs. Since all of this information is located on a single system, it saves time compared to digging through paper files; in addition, this centralization will allow the IT department to focus on their other responsibilities which will increase the overall efficiency of the company. The data retrieved from a database can be made to appear in a consistent format, which will allow businesses to compare new data to data previously collected in a way that will give them a better understanding of their business’s progress. Lastly, practice has determined that data warehouse implementation allows businesses to generate more revenue than those who use other formats of data storage. Although the initial monetary investment necessary for data warehouses creation is expensive, many business owners believe that they are worth it. Databases are useful for data storage practices that support both enterprise and web-based applications. The use of this system allows company owners to collect data from the internet and convert this information into usable models that predict trends. Eventually, the company will be able to use this information to understand patterns that will help their business succeed.