A data warehouse is a key component of business intelligence, and is the core of data reporting and analysis. Data is uploaded from systems such as marketing and sales, and is stored with recent data alongside historical. This allows for comparisons to be made, and trends to be observed in terms of a business’ success. A typical data warehouse uses an ‘ETL’ model, meaning that the data goes through a process of extraction, transforming and loading. The end result is an organized, retrievable set of data, often with extraneous data removed during the process through ‘data cleansing’.

Data is organized into hierarchical groups, and categorized as either facts or aggregate facts. Managers and business professionals are then able to use the data for market research and decision support.

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