Topic > Modern Business Tools: Data Mining and Data Warehousing

Data mining and data warehousing are used daily in a wide variety of contexts. In today's business world, decisions must be made quickly and with maximum knowledge. Data warehousing is the process in which data from multiple sources is combined and stored in a common database (Gutierrez). The fundamental concept of data warehousing is the distinction between data and information. Data are observable and recordable facts, but they only gain value when they are presented as information. Data warehousing begins with information captured from source databases such as transactional and operational systems. This information is then transformed, further organized and uploaded to a central repository. Some data warehousing techniques and tools including data warehousing devices, platforms, architectures, data stores (Data Warehousing, n.d.). A data warehousing device is a combined hardware and software product designed for analytical processing. Data warehousing includes data retrieval, analysis, extraction, loading, transformation and data management. In Figure 1.1, the data mining and data warehousing process is shown. Figure 1.1 The structure of a data warehouse can consist of simple data sources that enter directly into a warehouse, which is therefore directly visible to users, to data sources stored in a staging area before entering the warehouse and then classified for viewing of users through the use of data marts. A staging area is the area where component data must pass through before being collected in the warehouse. In the staging area, data is simplified before being deposited in the warehouse. Because there may be so much data stored in a warehouse… in the middle of paper… at the distribution stage, insightful, actionable insights can be gleaned from the data. Deployment may involve integrating data mining models into applications, data warehouse infrastructures, or query and reporting tools. There is so much digital data stored in the world today, but we are hungry for knowledge. The process of data warehousing and data mining brings numerous benefits to businesses, society, governments and individuals. There are many everyday business uses of data warehousing and data mining, and there are particular tools available. Going forward, companies will need to weigh the costs associated with data warehousing and data mining and the resources needed alongside any other considerations. For now, data warehousing and data mining technology will continue to bring profits to companies that choose to use the technology.