Large enterprises would intuitively tend towards a data warehouse, knowing that every single bit and byte can be stored, recalled, analyzed and translated into meaningful decision-based actionable tactics and strategies. But what about smaller enterprises? Wouldn’t a reasonable sized database be just as good? What’s the difference?
It’s really quite simple: the biggest benefit of a data warehouse is that it can pull data from different sources and use it to formulate detailed reports which can be analyzed on demand. Essentially, a data warehouse cuts down the time required to find and analyze important data and translate it into business action.
A database designed to handle transactions isn’t designed to handle analytics. By contrast, a data warehouse is structured to make analytics fast and easy.
When do I need a Data Warehouse?
Simple answer – right now. And how would you know? Here are five indicators that you really need to start considering implementing a data warehouse solution, no matter the size of your enterprise:
1. Does your company takes digital data seriously?
If so, then you should start looking at the available options. Business success demands good decisions. And good decisions can only be made if all relevant data can be taken into account and analyzed effectively. The best way to achieve this is with a well-designed data warehouse.
2. Getting mixed numbers?
A well-designed data warehouse gives you a single view of your customers across the wide range of sectors and the channels they use. By integrating data from those different channels into a single data set you can develop a cohesive view of who your customers are and make intelligent business decisions about how best serve them.
3. Are time-related decisions critical for success?
A data warehouse saves time: using one resource, you will be able to quickly access critical data gathered from multiple origins. Because of the powerful analytic capabilities of a data warehouse, you will be able – not having to rely on IT support – to make quick, well-informed decisions on key initiatives without having to waste precious time searching for and retrieving data from many different sources, saving time and money.
4. Would high quality business intelligence help you make more effective tactical and strategic decisions?
You will be able to perform analysis that matters. Such as identifying potentially high value consumers quickly – almost as soon as they begin their customer journey. You will gain an accurate and strategically important view of which products and brands to prioritize, which markets to tackle, staff performance, and more.
Analyzing data will indicate which marketing channels interact with one another to drive signup, and why. You will be able to use the analytics provided through a data warehouse to understand more about the different types of users engaged with your service or products. You will be able to classify users, and tailor products or service to each market sector or segment.
Such analysis can help you understand the way that updates and changes to your app, product or service change the way that users interact with it and show the commercial impact of different customer behavior.
5. Is a high ROI important to your business?
Of courses it is. Companies that have implemented data warehouses and complementary BI systems have generated more revenue and saved more money than companies that haven’t invested in BI systems and data warehouses. This alone, is probably the best reason to move to a data warehouse.
If you can answer positively to any one of these five indicators, then it’s time to start exploring the opportunities and benefits.