Data warehousing refers to the process of collecting, storing, and managing large volumes of data from various sources in a centralized repository, known as a data warehouse. This system is designed to support business intelligence (BI) activities, such as data analysis, reporting, and decision-making.
Key characteristics of a data warehouse include:
Subject-Oriented: Focuses on specific areas of interest, like sales or finance.
Integrated: Combines data from multiple sources, ensuring consistency and uniformity.
Time-Variant: Tracks and stores historical data over time.
Non-Volatile: Once data is entered into the warehouse, it is not altered or deleted, allowing for consistent analysis.
Data warehouses allow businesses to analyze historical data, uncover trends, and make data-driven decisions. They are optimized for querying and reporting rather than transactional tasks.