Data Warehouse Technology

A data warehouse, as its name suggests, is a computer-based storage system of data that can be drawn from, based upon the user's needs. "Data warehouses contain a wide variety of data that present a coherent picture of business conditions at a single point in time," (What is data warehousing, 2009, Webopedia). However, unlike a file cabinet in the 'real world,' data warehousing through computer technology provides a number of uniquely useful features for a user. Managers can extract different varieties of data from different operating systems and engage in multifaceted cross-comparison of the results. For example, a manager could examine sales data from a particular quarter, and compare that with advertising revenue or sales from previous years. This type of flexible access to the data enabled by the "combination of many different databases across an entire enterprise" enables more accurate and creative approaches to decision-making (What is data warehousing, 2009, Webopedia).

Privacy issues may arise in terms of obtaining the data -- customers may be directly solicited for feedback on their satisfaction with a product but data might also be kept was not directly and knowingly given to the company by the purchaser. Additionally, there are concerns about selling such technology to third parties, and as a result more companies are promising to keep such information confidential. Oracle and MSQL are two of the most notable vendors of data warehouse technology, and have vastly improved the size and also the variety and 'scalability' of available data. Effective data warehouses have data mining models that enable "clustering, associations, classification, and prediction" of available data yet also allow for the collection of unstructured data, so new models can be created that are suitable to changing situations (InfoSphere Warehouse, 2009, IBM). A good data warehouse enables the user to "exact structured information out of previously untapped business text" (InfoSphere Warehouse, 2009, IBM). The business value is immense," of an effective data warehouse, and should enable "fraud detection, product defect analysis, better customer profiling, and early warning on customer attrition" (InfoSphere Warehouse, 2009, IBM).

Works Cited

InfoSphere Warehouse. (2009). IBM. Retrieved August 16, 2009 at http://www-01.ibm.com/software/data/infosphere/warehouse/features.html?S_CMP=rnav

What is data warehousing? (2009). Webopedia. Retrieved August 16, 2009 at http://www.webopedia.com/TERM/D/data_warehouse.html