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Uses of Data Warehouses
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Data Warehouses are the subject-oriented, integrated, time-variant, non-volatile collections of data of
enterprises used to support analytical decision-making. The data stored in a warehouse comes from
different operational systems inside an enterprise as well as from external sources. Data Warehouses are
separated from operational systems; however they are fed by operational systems with varied source data.
Data warehouses are created to support company executives, managers and business analysts in making
complex business decisions. To be very precise, data warehouses are used for the following purposes:
Validation: It is found that most companies use data warehouses for validation. This is where a
company validates with data what they already believe to be true. Studies show that about 45 percent of
the usage of a data warehouse is validation. For example: consumers from different places buy products
differently. Let's say New York consumers purchase a candy bar on a whim (city population buying
patterns), while Denver consumers are less likely to do so (rural population buying patterns). According
to a study report about 45% of the usage of the data warehouse is validation.
Tactical Reporting: Tactical reporting is where a company or the user community uses the data
for a tactical reason. For example: the salesperson of a corporation is going to visit customer X in an
intention to know what the latter bought during last year. There is no comparison of customer X and
customer Y to see if there is anything that might suggest new products to sell. About 40 percent of the
usage of a data warehouse is for tactical reporting.
Exploration: Exploration is where a company searches for ideas or knowledge that it did not
know before. At this point data mining techniques such as association, classification, genetic algorithms
and applications, including market basket analysis, fraud detection come across as important tools.
Studies say about 15 percent of data warehouse usage accounts for exploration.
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