What is a Data Warehouse and its key benefits?

A data warehouse is a central repository for storing and managing data that is generated by an organization's various business systems and applications.

Data warehouses are designed to provide a single, consistent view of data across an organization, and they are typically used for reporting and data analysis. Data warehouses are built on relational database management systems, and they are optimized for fast querying and data retrieval. Data is typically extracted from various source systems, transformed to fit the data warehouse schema, and then loaded into the data warehouse for analysis.

Data warehouses are an important tool for businesses that want to make data-driven decisions and gain insights from their data.

The main objective of a data warehouse is:

To be a collection point for the storage of data
Enable the relevant systems to access and use the information
Merge data from different sources, systems, and business units
Optimize and prepare data for analysis
Traceability and access to historical data
Reduce load on production table and hence increase performance for end-users
Scalability

As seen above there are many benefits of using a data warehouse and performing transform in SQL rather than in Power BI.

Common components of a data warehouse include:

ETL - Extract, Transform, and Load
Data Vault
Data Mart

ETL is the process of extracting, transforming, and loading data from the source system to the data warehouse. Data Vault is where the data is actually stored in the data warehouse and can in turn be divided into different categories or niches. For example Financial, Operational, Key Metrics, and Master Data. Data mart consists of views created from tables in the Data vault. These views are then used to build the data model.

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