Data warehousing Advantages
The successful implementation of a data warehouse can bring major, benefits to an organization including:
- Potential high returns on investment
Implementation of data warehousing by an organization requires a huge investment typically from Rs 10 lack to 50 lacks. However, a study by the International Data Corporation (IDC) in 1996 reported that average three-year returns on investment (RO I) in data warehousing reached 401%.
- Competitive advantage
The huge returns on investment for those companies that have successfully implemented a data warehouse is evidence of the enormous competitive advantage that accompanies this technology. The competitive advantage is gained by allowing decision-makers access to data that can reveal previously unavailable, unknown, and untapped information on, for example, customers, trends, and demands.
- Increased productivity of corporate decision-makers
Data warehousing improves the productivity of corporate decision-makers by creating an integrated database of consistent, subject-oriented, historical data. It integrates data from multiple incompatible systems into a form that provides one consistent view of the organization. By transforming data into meaningful information, a data warehouse allows business managers to perform more substantive, accurate, and consistent analysis.
- More cost-effective decision-making
Data warehousing helps to reduce the overall cost of the· product· by reducing the number of channels.
- Better enterprise intelligence.
It helps to provide better enterprise intelligence.
- Enhanced customer service.
- It is used to enhance customer” service.