Data warehousing creates a data repository, while business intelligence tools analyze and interpret data. Data warehousing includes databases and hardware, while business intelligence includes analytical software. Both require IT skills and are used to make informed business decisions.
Data warehousing and business intelligence are two terms that are a common source of confusion, both inside and outside the information technology (IT) industry. Generally, data warehousing refers to the technology used to actually create a data repository. Business intelligence refers to the tools and applications used in analyzing and interpreting data. These two elements have grown substantially and anticipate continued growth in the future.
Data warehousing is made up of two main tools: databases and hardware. In a data warehouse, there are several databases and data tables used to store information. These tables are related to each other by using common information or keys. The size of a data warehouse is limited by the storage capacity of the hardware.
The hardware needed for a data warehouse includes a server, hard disks and processors. In most organizations, data is accessible via shared network or intranet. A data architect is usually responsible for setting up the database structure and managing the process for updating data from original sources.
Business intelligence is a term used to describe analytical software. Data warehousing and business intelligence solutions can work together to provide and support a user dashboard that delivers personalized information to the user. The software provided in a business intelligence solution often includes the ability to manage large data sets, create queries and generate reports. An important aspect of any business intelligence solution is usability.
The main distinction between these solutions is their purpose. A data warehouse is designed to maintain and support the transactional data, while the business intelligence solution is used to access and review the data. These terms are often used interchangeably but mean very different things.
Employees working with data warehousing and business intelligence tools are often required to have a combination of information technology skills. They must be able to manage and support the technology from both a hardware and software perspective. Additional skills for the data warehousing team often include relational database management and creating database structures. Business intelligence staff should generally have training in statistics and mathematics in addition to programming logic.
The growth of these two solutions is due to the maturity of commercial technology. As organizations accumulated more transactional data, they needed a way to access that data in a meaningful way. These tools are used to create reports that can identify trends and help inform good business decisions.
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