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Corporate Data Warehouse, Functions, Types and Advantages of Data Warehouse

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corporate data warehouseAdvantages and types of Data Warehouse, Organizational
needs of Data Warehouse, Functions of Data Warehouse,
Fundamentals of E-commerce Notes | Sixth Semester,
BSc.CSIT | Tribhuvan University (TU)

Corporate Data Warehouse
Data warehouse is used store information of the organization, leverage existing business and generate new growth opportunities. It is needed to handle increasing data in volume and complexity. It is considered as a repository of an organization’s electronically stored data and are designed to facilitate reporting, analysis, extraction and transformation to manage a data dictionary.

In contrast to data, warehouses are operational systems that perform day-to-day transaction processing. It provides a tool to satisfy the information needs of the employee’s at all organizational levels-not just for complex data queries but as a general facility for getting quick, accurate and often insightful information. One of the principal reasons for developing a Data Warehouse is to integrate operational data from various sources into a single and consistent architecture that supports analysis and decision making with the enterprise.

Organizational Needs of data warehouse

  • An information-based approach to decision making.
  • Involvement in highly competitive & rapidly changing markets with a large, diverse customer base for a
    variety of products.
  • Data stored in many systems and represented differently.
  • Data stored in complex, technical, difficult to decipher formats, making conversion for analysis difficult


  • Allow existing transactions and legacy systems to continue in operation.
  • Consolidates data from various transaction systems into a coherent set.
  • Allows analysis of virtual information about current operations of decision support.


  • Physical data warehouse
    It is the actual physical database into which all the corporate data for the data warehouse are gathered along with the schemas and the processing logics.
  • Logical data warehouse
    It contains all the metadata, business rules and processing logics required to scrub, organize, package and pre-process the data. It also contains information required to find and access the actual data, wherever it actually resides.
  • Data library
    This is sub set of the enterprise wide data warehouse and performs the role of a departmental, regional or functional data warehouse. As part of the data warehouse process, the organization builds a series of data libraries over time and eventually links them via an enterprise wide logical data warehouse.


  • More cost effective decision making: A data warehouse allows reduction of staff and computer resources required to support queries and reports against operational and production database. This typically offers significant savings.
  • Better enterprise intelligence: Increased quality and flexibility of enterprise analysis arises from the multi-level data structure which guarantees data accuracy and reliability ensuring that a Data Warehouse contains only “trusted” data.
  • Enhanced customer service: An enterprise can maintain better customer relationships by correlating all customer data via a single Data Warehouse Architecture.
  • Business re-engineering: Allowing unlimited analysis of enterprise information often provides insights to enterprise processes that may yield breakthrough ideas for engineering those processes. Knowing what information is important to an enterprise will provide direction and priority for re-engineering efforts.
  • It provides a common data model for all data of interest regardless of the data’s source. This makes it easier to report and analyze information than it would be if multiple data models were used to retrieve information such as sales invoices, order receipts, general ledger charges, etc.
  • Prior to loading data into the data warehouse, inconsistencies are identified and resolved. This greatly simplifies reporting and analysis.
  • Information in the data warehouse is under the control of data warehouse users so that, even if the source system data is purged (washed out) over time, the information in the warehouse can be stored safely for extended periods of time.
  • Because they are separate from operational systems, data warehouses provide retrieval of data without slowing down operational systems.
  • It can work in conjunction with and, hence, enhance the value of operational business applications, notably customer relationship management (CRM) systems.
  • It facilitate decision support system applications such as trend reports (e.g., the items with the most sales in a particular area within the last two years), exception reports, and reports that show actual performance versus goals.
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