IMPORTANCE OF DATA WAREHOUSING

Activity 1:
Discuss the importance of data warehousing on the following services or aspects. Give or cite an example. Put
your answer in a word document.

Data warehouses have deeply rooted applications in every industry which uses structured and unstructured data
from disparate sources for forecasting, analytical reporting, and business intelligence, allowing for robust
decision-making. 

1.  Financial services
Data warehouses can help improve the quality of data, which means the data your financial organization will
use is more accurate and consistent. And once your information is of a higher quality, your decisions based off
of that data will be more accurate as well. At a time when financial predictions need to be precise, an enterprise
data warehouse gives you that much needed advantage.

 Evaluation of customer expenses trends

 Maintain transparency in transactions
 Predict/spot defaulters and act accordingly
 Analyze and forecast different aspects of business, stock, and bond performance
 Tracking investment managers

2.  Banking services
Data warehousing is important for the banking sector because it helps in the following ways:

 Identify the potential risk of default and manage and control collections
 Performance analysis of each product, service, interchange, and exchange rates
 Track performance of accounts and user data
 Provide feedback to bankers regarding customer relationships and profitability

3. Consumer goods
Data warehousing is important for the Consumer goods because it helps in the following ways:

 Forecasting
 Inventory replenishment
 Effects of marketing campaigns, advertising, coupons and store displays
 Market research
 Sales and marketing analysis
 Sharing information with distribution sites, business partners and product managers
 Identify required product features

4. Retail sectors
Data warehousing is important for the Retail sector because it helps in the following ways:

 Maintain records of producers and consumers

  Track items, their promotion strategies, and consumer buying trends (trend analysis)
 Analyze sales to determine shelf space
 Understanding the patterns of complaints, claims, and returns

5. Controlled manufacturing
Data warehousing is important for the Controlled manufacturing because it helps in the following ways:

 Predict market changes and analyze current business trends

 Analyze previous and current market data
 Track customer feedback and identify opportunities for improvement
 Gather, standardize, and store data from various internal and external sources
 Identify profitable product lines and required product features