The Benefits of Data Modeling in Data Warehousing

November 2008

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Most organizations have vast quantities of data. Data is constantly collected as every transaction is made, every employee review is completed, and every sales lead is chased. This data is at the core of the systems that run an organization, and the databases that power these systems have been designed in a way to make an organization’s business processes as efficient as possible. The problem arises when business users need to report on this information, to determine how many transactions were made this year, for example. There are several challenges to using transactional systems for business reporting:

  • The database design that is required for reporting is very different from the design that is required to optimize the performance of transactional systems.
  • Running reports against mission-critical transactional systems slows their performance, negatively affecting the systems that run the organization.
  • Data that is stored in a transactional database system is not centralized; there is no single source of information against which reports can be generated.

To solve these challenges, we should create a data warehouse that is designed specifically with business reporting in mind, and contains all of the relevant information for reporting. The data warehouse is an important supplier of information to the business, so it is essential that we model both its physical and logical designs. The physical design determines the performance and functionality of the data warehouse, and the logical design is the view that we present to developers and users to capture business requirements.

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