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Data Warehouse Applications, Advantages & Disadvantages

In this article, we are going to learn about the Applications of Data Warehouse with the Advantages & Disadvantages of Data Warehouse.
Submitted by IncludeHelp, on January 06, 2021

Applications of Data Warehouse

The most important industries in which data warehouses are used -

• Supply Chain - Data warehouses are commonly used for the distribution and marketing of supermarket chains. It also helps monitor products, consumer shopping trends, and promotions and also helps to establish pricing strategies.
• Investment - The warehouses are mainly used to analyze patterns of knowledge, consumer trends, and to monitor market movements.
• Public Sector - Data warehouses are used in the public sector for collecting intelligence. It allows government agencies to retain and evaluate tax records, health policy records, for every person.
• Health - Data warehouse is also used by the healthcare industry to strategize and forecast performance, produce condition reports for patients, exchange data with tie-in insurance providers, medical assistance programs, etc.
• Banking - Identify the possible risk of default and collections are handled and monitored. The performance analysis of each commodity, service, interchange, and exchange rates can be easily calculated. Monitor the productivity of accounts and user details. It facilitates bankers with suggestions about consumer relationships and profitability.
• Government - Tax records, health policy records, and their respective providers are kept and evaluated. It can forecast the patterns and trends of criminal activities. This supports the hunt for terrorist profiles. It is possible to conduct threat evaluation and fraud detection.

Advantages of Data Warehouse (DWH)

• To alleviate the burden on the manufacturing system, the Data Warehouse helps to combine multiple data sources.
• The data warehouse helps to decrease the overall research and reporting turnaround time.
• Restructuring and convergence make documentation and review simpler for the customer.
• The data warehouse allows users to access confidential data from a single location from several sources. It also saves time for users to access data from various sources.
• A large amount of historical information is stored in a data center. This helps users to compare different times and trends to construct possible predictions.

Disadvantages of Data Warehouse (DWH)

• Data centers are high-quality maintenance systems. The data warehouse could be impacted by any reorganization of the business processes and the source systems, resulting in high maintenance costs.
• The data warehouse may sound basic, but it's just too complex for average people.
• Despite the best intentions of project management, the scope of the data storage project will begin to grow.
• At this point, warehouse customers can have various business rules in place.