Importance of Data Warehousing In BI Software Development

Posted By : Anirudh Bhardwaj | April 20, 2021

data warehousing in BI software development services

As of today, an increasing number of businesses rely on data warehouses and business intelligence (BI) tools to manage their operations and services. BI and data warehousing have become important components of a business strategy that is critical to achieving success in today’s competitive market. The main purpose of using BI tools is to capitalize on your customer data and make smarter decisions to achieve business goals. In doing so, you can significantly improve business performance and boost the level of productivity. However, making intelligent decisions requires agile access to business data and dedicated tools for processing and analyzing it. That’s why we have data warehousing solutions that facilitate the storage and analysis of large amounts of data. 

In this post, we shed light on the importance of data warehousing in BI software development services while trying to draw a correlation between the two. But before we jump into the subject matter, let’s begin with the basic definitions. 


Also, Read Selecting The Right Tools For BI Application Development


What Is Data Warehousing?

According to Gartner, a data warehouse management software  is a storage architecture that holds data extracted from multiple sources including operational databases and transaction systems. In other words, it can be termed as a data management system that stores and provides data in the required format for large-scale reporting and analysis. Data warehousing is an important component of the ETL (extract-transform-load) process that extracts data from multiple sources and stores it in an organized manner. In addition to storing data, it automatically aggregates and organizes data in a presentable format for further processing and analysis. 

A data warehouse is capable of handling complex data queries and different storage schemas to facilitate a frictionless cleaning process. It also provides a tamper-proof storage facility with advanced security, backup, and disaster recovery features. Therefore, it is a crucial component of the BI architecture and plays a vital role in BI software development services


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The Business Intelligence Architecture 

Now that you are familiar with data warehousing, let’s delve into the basics of the BI software architecture. 

According to Gartner, business intelligence is an umbrella term that combines several applications, infrastructure, tools, and methodologies that focus on improving business performance. That said, the BI architecture refers to the software infrastructure that enables enterprises to intelligently run their routine administration tasks. It incorporates advanced data processing algorithms, technology standards, data analytics tools, and ETL systems to support an organization’s business intelligence efforts. 

In other words, the BI architecture serves as a technology blueprint for collecting and managing business data while making it available for large-scale processing and analysis. Besides, the architecture is also critical to define technology standards for business intelligence and monitor the use of software components. In the following section, we’ll discuss the importance of data warehousing in BI software development services


Also, Read ERP And Business Intelligence: Why They Are Connected?


The Correlation Between BI and Data Warehousing

Business intelligence and data warehousing are two processes that go hand-in-hand i.e one wouldn’t function without the other. Nevertheless, it is not difficult to comprehend the importance of data warehousing in BI software development services. It is quite clear from the above discussion that the BI architecture requires effective means for storing and retrieving a company’s data. Therefore, the data must be safely extracted from the given sources and stored in internal/external databases. Furthermore, this data must be easily accessible to BI tools for incessant analysis that aids in generating actionable insights. 

Below is a flow chart representation of the software architecture that clearly highlights the importance of data warehousing in business intelligence. 

data warehousing in BI software development services


The flow chart depicts different components of a business intelligence system as well as the processes taking place in parallel.  The first step is to collect data from different sources like ERP/CRM systems, APIs, databases, and IoT devices. When data is successfully collected, we move on with the integration step that mainly involves three different stages i.e extract, transform and load. 

During extraction, we pull data from external sources whereas, transformation involves conforming data to the required standards. Eventually, we load data into data warehouse management solutions for easy access throughout the analysis process. Furthermore, analyzing this data using advanced BI tools is conducive to making intelligent, data-driven decisions with sheer accuracy. 


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Avail Our BI Software Development Services To Boost Your Business Productivity

We, at Oodles ERP, provide end-to-end BI software development services to drive digital transformation through intelligent decision making. Our development team specializes in using avant-garde data visualization techniques and advanced analytics tools to build scalable enterprise software solutions. We use open-source tools like Apache Hive and AWS Redshift for data warehousing and BIRT, Apache Superset for data visualization. Our 360-degree BI software development services enable organizations to successfully achieve their business goals, enabling them to grow and expand to new horizons. For more detail, visit our website or write to us at [email protected]

About Author

Anirudh Bhardwaj

He is a technology enthusiast with 3+ years of experience in producing insightful content on projects related to next-gen technologies like AI, Blockchain, ERP, OTT, Cloud, Big Data, AR/VR, IoT, and more.

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