A Data Warehouse (DWH) is a central repository that stores integrated data from multiple
sources and is used primarily for reporting, analysis, and decision-making.
Here are the core functions of a Data Warehouse (DWH):
📦 1. Data Integration
Collects and consolidates data from different sources:
o ERP systems
o CRM systems
o Flat files (CSV, Excel)
o Databases (SQL, NoSQL)
o APIs, logs, etc.
Transforms raw data into a consistent format.
🧼 2. Data Cleaning & Transformation (ETL/ELT)
ETL (Extract, Transform, Load) or ELT process:
o Extracts data from source systems.
o Transforms data (cleaning, deduplication, formatting, business logic).
o Loads data into the DWH.
Ensures high data quality and consistency.
🗃️3. Data Storage & Organization
Stores historical data in a structured format.
Uses dimensional models (star, snowflake schema) for optimized querying.
Supports both summary-level and transaction-level data.
🧠 4. Analytical Processing (OLAP)
Enables Online Analytical Processing (OLAP):
o Slice & dice data
o Drill-down, roll-up
o Pivot and filter across dimensions (e.g., region, time, product)
Supports complex aggregations and trend analysis.
📊 5. Reporting & Business Intelligence (BI)
Acts as the backend for BI tools (e.g., Power BI, Tableau, Qlik).
Supports dashboards, KPI reports, and ad-hoc queries.
Enables trend forecasting, anomaly detection, performance tracking.
⏳ 6. Historical Data Management
Keeps historical snapshots for year-over-year or quarter-on-quarter comparisons.
Useful for regulatory, audit, and long-term trend analysis.
🔐 7. Data Governance & Security
Role-based access control.
Data lineage and audit trails.
Compliance support (GDPR, HIPAA, etc.).
Metadata management (data definitions, source tracking).
🚀 8. Performance Optimization
Indexing, partitioning, materialized views for fast query execution.
Batch and incremental data loading support.
🌐 9. Support for Multiple Users & Queries
Allows multiple analysts or systems to query data simultaneously without impacting
operational systems.
Ensures high availability and concurrency.
📌 Typical Users of a DWH:
Business Analysts – for strategic insights and KPIs.
Data Scientists – for modeling and experimentation.
Executives – for decision dashboards.
IT/Data Engineers – for maintaining pipelines and quality.
🏗️Common Technologies
Type Examples
Traditional DWH Oracle, Teradata, Microsoft SQL Server
Cloud-based DWH Amazon Redshift, Google BigQuery, Snowflake, Azure Synapse
ETL Tools Apache Nifi, Talend, Informatica, dbt, Apache Airflow
BI Tools Tableau, Power BI, Looker, Qlik