Sunday 31 August 2014

What is a Data Warehouse, how is it different from a traditional database

What is a Data Warehouse ?

To keep it simple, let us take Bill Immon’s definition of the Data Warehouse (one of earliest authors on DWH):

A Data Warehouse is a central repository for the Entire Enterprise”.

As we know, the end product of Business Intelligence are the reports/dashboards that assist the stakeholders in analyzing the trends and help them take decisions. But it is important that these reports are projected on data that is accumulated over a period of time (historical data) and not just recent data or data from a single system. In other words, these reports would make sense only when they are created on top of integrated and historical data. Considering the fact that Organizations these days have their data scattered across multiple systems, platforms and formats, DWH’s role becomes all the more crucial as it acts as a one stop destination.
  
How is it different from a traditional database?

Following are the differences between Operational/Transactional systems and a DWH:
    
Operational/Transactional database
Data Warehouse

It deals with operational data i.e. data involved in the operation of a particular system and it is characterized by a large number of short on-line transactions

Features
§ Designed Primarily for fast INSERTs, UPDATEs and DELETEs.
§ Quick Singular Transactions.
§ Operational/transactional Data
§ Application specific DBs

It is a collection of Historical and integrated Data accumulated from various operational systems. 


Features
§ Designed Primarily for : SELECTs
§ Fast Reading of Large Data Sets
§ Historical Data or Archival Data
§ Integrated data set with a global relevance

Now that we got to know that a Data Warehouse is the most important Cog in the BI (Business Intelligence) wheel, it is time to get our hands dirty and scan deeper into the Data Warehouse (DWH).

In next posts, we shall begin with the core concept that drives the functionality and architecture of a Data Warehouse.