Data warehouse is a database that is designed to store, manage and analyze data about one or more operational areas. Most information systems offer database-oriented features so that users can create a database for their needs. These databases are used in many different industries today, and the ability to create a massively scaled data warehouse is a requirement for many companies both large and small. There are data warehouse solutions already in use today, and you can use the same principles that are used for building these solutions today for building your data warehouse.
There are two types of data warehouse systems: operational and analytical data warehouse system. Operational warehouses tend to focus on collecting raw, structured data throughout the business so that it is readily available for analysis. Analytical warehouses are designed to process large amounts of data and deliver it in a simple format, usually in a data mart. In this piece, we will discuss how to build a data warehouse in 2022.
Why Should I Build a Data Warehouse?
There are many reasons why you should build a data warehouse. Some of the most important reasons include:
Provide insight for decision making – A data warehouse allows for all business processes to be correlated, giving managers a clearer picture of all the relevant information. A data warehouse allows managers to make informed decisions that will ultimately provide business results.
Improve profitability – When using a data warehouse, companies can create sustainable cost savings by consolidating multiple processes into one system and analyzing large volumes of data in ways that were not previously possible.
Improve operations – A data warehouse is especially valuable to businesses that have a huge amount of data with many business processes and information coming together in complex relationships. The more data that is stored and analyzed, the easier it will be to identify patterns, trends, and causal relationships, which can help improve operations.
Structure of a Data Warehouse
A data warehouse has several parts, including data marts and a management information system (MIS). A data mart is a collection of data that is stored in its own database. These databases hold information specific to a business area such as sales, marketing, or finance. Each database only contains information that pertains to that one business area and cannot be shared across business areas.
The MIS is the database in which managers can look at all the different business areas from one central point. The MIS allows managers to see all the different data marts together in one place. The data flows from the individual data marts into a central repository, or a shared database that is located at a single point in the network. Data warehouse platforms often include the functionality of a data warehouse, data marts, and a MIS.
Building a Data Warehouse Platform From Scratch
Below are the steps to build data warehouse:
1. Determine Goals
The first step is to make sure that the organization has a clear understanding of why it needs a data warehouse. This will help you decide the most appropriate way while building a data warehouse.
2. Analyze the Information Needs
The next step is to break down the information needs and determine what type of data should be collected. This is critical because it will help determine the number of data marts and will also help with building the MIS.
3. Business Case and Project Roadmap
Once the information gathering process has been completed, you will need to document the business case and project roadmap. This documentation should include a business case that discusses what metrics, concepts, data, and processes are going to be collected. It should also include a project roadmap from start to finish.
4. System Analysis and Data Warehouse Architecture Design
Once all the information is gathered and organized, it is time to build a data warehouse. The system analysis will help you determine what type of information should be stored, and the data warehouse architecture design will help you decide what technologies are going to be used for building data warehouse.
5. Development Process
In order to build the data warehouse, you will need to create a development process that one or more teams can manage. It is important to make sure that each team understands what their role is in the process and what changes are going to be made as the data warehouse is built.
6. Launch the Data Warehouse
Before you can launch the data warehouse, you will need to complete the full implementation of each process and make sure that all of the components are functioning together. At this point, you should also make sure that data quality is consistent so that it is ready for use once it’s live.
7. Testing and Training
Once the system is ready to be used, you will need to test the data warehouse to make sure that everything works. Testing is a very important part of this process because it will make sure that there are no problems with the data warehouse. It will also ensure that everyone who uses the data warehouse understands how to access and use it in an optimal manner.
Cost of Data Warehouse Development
Estimates for what it costs to build a data warehouse vary. Some estimates are as high as $30 million, but the average cost tends to be between $6 million and $10 million. The specific cost of building the data warehouse will vary depending on :
1. The amount of storage required- Typically, the more data that is being stored, the more it will cost.
2. Technical skills required- The more skills that are required to build the data warehouse, the more it will cost.
3. Location of the data warehouse- It will cost more to build a data warehouse in a central location versus an off-site location. You can also increase the cost if you are building in a remote area.
In conclusion, the data warehouse is a very important IT system to any organization. It gives you valuable insight into your company and helps make important business decisions. Building the best data warehouse requires careful planning, as well as significant time and financial resources. If your company decides that there is a need for a data warehouse, then it should be built with the right technology and trained professionals to get the most out of it.