What are the advantage and disadvantage of Data Warehousing?

Answer 1

1. The number one reason why you should implement a data warehouse is that employees or end users can access the data warehouse and use the data for reports, analysis and decision making. Using the data in a warehouse can help you locate trends, focus on relationships and help you understand more about the environment that your business operates in.
2. Data warehouses also increase the consistency of the data and allow it to be checked over and over to determine how relevant it is. Because most data warehouses are integrated, you can pull data from many different areas of your business, for instance human resources, finance, IT, accounting, etc.
3. While there are plenty of reasons why you should have a data warehouse, it should be noted that there are a few negatives of having a data warehouse including the fact that it is time consuming to create and to keep operating.
4. You might also have a problem with current systems being incompatible with your data. It is also important to consider future equipment and software upgrades; these may also need to be compatible with you data.
5. Finally, security might be a huge concern, especially if your data is accessible over an open network such as the internet. You do not want your data to be viewed by your competitor or worse hacked and destroyed.