By providing centralized storage for large amounts of data, businesses and organizations can gain valuable insights and make well-informed business and marketing decisions based on their data. However, managing a data warehouse can be complex and resource-intensive, so many companies are turning to managed data warehousing solutions.
By: Kelly Paul
Managed Data Warehousing
Managed data warehousing involves outsourcing the management of a company’s data warehousing needs to a third-party service provider, providing businesses and organizations with cost-effective, scalable, expert, and flexible solutions to help them get the most out of their data and drive business growth.
The provider is responsible for data extraction, transformation, loading, database administration, and maintenance — and you still own your data. They are ultimately saving businesses from making significant investments in the personnel, hardware, and software required for in-house data warehousing solutions.
Key Features of Data Warehousing
Data warehousing is a powerful technology that allows businesses to better manage, store, and analyze their data. Several key features include:
Centralized Data Storage
Data warehousing centralizes data from multiple sources into a single storehouse, making it easier for businesses and organizations to access and manage their data.
The data is integrated from multiple sources into a single format, allowing business analysts to see a comprehensive view of their data.
Data Cleansing and Transformation
Data warehousing cleans and transforms data to ensure it is accurate, consistent, and usable for strategic analysis and reporting.
Query and Analysis-Focused
Data warehousing is designed to support querying and analysis, enabling businesses and organizations to quickly and easily extract insights from their data, often in real-time.
Large Data Capacity
Data warehousing can handle large amounts of data, making it suitable for organizations with high volumes of data regardless of business or organization size.
Historical Data Storage
Data warehousing stores historical data, allowing organizations to track changes and trends over time.
Data warehousing is scalable, allowing businesses and organizations to add more data as their needs grow.
Components of Data Warehousing
Data warehousing comprises multiple components that work together to ensure businesses and organizations can effectively extract value from their stored data to make data-informed decisions related to their operations and marketing activities. These components include:
The sources of the data from which data is extracted. These include traditional data sources such as customer databases, transactional databases, advertising platform databases, and other external data sources.
Extraction, Transformation, and Loading (ETL) Processes
The ETL processes extract data from the data sources, transform it into the required formats with harmonized schemas (naming conventions), and load it into the data warehouse.
These define the structure of the data stored in the data warehouse, ensuring that the data is consistent and usable for data analysis.
Metadata is the data that describes the data stored in the data warehouse. This includes data definitions and relationships between data elements.
Query and Analysis Tools
These tools allow data scientists to access and analyze stored data. These tools may include SQL-based tools, Online Analytical Processing (OLAP) cubes, and business intelligence software.
Data Security and Privacy
These measures protect the data stored in the warehouse and ensure it is used in accordance with regulations and polices, including data protected by the General Data Protection Regulation (GDPR).
Benefits of Data Warehousing
Several benefits of a managed data warehouse for small-to-mid-sized businesses make it an invaluable asset to any organization looking to maximize efficiency while staying competitive. These include:
By outsourcing the management of data warehousing needs, businesses and organizations can reduce the costs associated with personnel, hardware, and software expenses.
Providers of managed data warehousing have the in-house expertise and experience to manage the complexities of data warehousing, allowing businesses and organizations to focus on their core business activities.
Access to Technology
Managed data warehousing providers have access to technology and tools for data warehousing that often aren’t available directly to small-to-medium-sized businesses and organizations. These businesses and organizations benefit from the latest investments without large financial investments.
Managed data warehousing providers ensure that data warehousing solutions comply with regulations and industry standards, reducing the risk of non-compliance and protecting organizations from potential legal and financial liabilities.
How Managed Data Warehousing Benefits Digital Advertising
Managed data warehousing provides several benefits to businesses and organizations implementing multi-channel integrated digital marketing campaigns. These benefits include:
Campaign Performance Analysis
Clean, organized, and aggregated data from all digital advertising channels makes it easier to track the effectiveness of campaigns and quickly make data-driven decisions.
Centralized and clean data allows for optimized audience segmentation allowing marketers to target audiences based on their behavior, demographics, and interests.
Customer Data Management
Storing customer data such as purchase history and browsing behavior can inform personalized advertising strategies.
With managed data warehousing, businesses can better track the impact of different advertising channels on customer conversion and optimize advertising spend.
Data-Driven Creative Optimization
Businesses can use data warehousing data to inform creative decisions and optimize advertising creative for better performance.
Common Uses for Data Warehousing
In addition to providing essential marketing intelligence for businesses and organizations, data warehousing is commonly used for general business insight, including:
Business Intelligence (BI)
To store, process, and analyze large amounts of data to support strategic decision making.
To centralize and consolidate data from multiple sources for a more unified view of the data and the insights it can reveal.
To train and use machine learning models with large amounts of data.
Supply Chain Management
To optimize and track supply chain processes using key business data.
The Future of Data Management
With the increasing volume of data being generated by and for businesses and organizations, managing this data effectively will become increasingly crucial for business decision makers to reach their target audiences and grow their businesses strategically. This is because of the following:
Growing Volume of Data
Businesses are generating data at an increasing volume, and managing this data will become even more critical, making managed data warehousing an attractive option for those seeking data-informed business intelligence (BI).
Complexity of Data Management
As data management becomes more complex, it will become difficult for many small-to-medium-sized businesses to ensure high data quality and manage their data needs in-house.
The increasing adoption of cloud computing is driving growth of managed data warehousing as it enables businesses and organizations to access data warehousing solutions anywhere at any time.
Compliance and Regulations
As data privacy and security regulations become more stringent, many businesses and organizations will look to managed data warehousing providers for help ensuring their data solutions are compliant.
A Powerful Business Tool
Managed data warehousing is a powerful tool for businesses and organizations looking to leverage their data to gain insights and make informed decisions. It provides cost-effective, scalable, expert, and flexible solutions to help your business grow.
Explore New Path’s Managed Data Solutions
Our team is experienced in managing and analyzing data to drive meaningful insights and results for our clients. Our managed data warehousing solutions help you gain valuable insights to inform and improve your marketing efforts.
Whether you’re looking to streamline your data management processes, gain a competitive edge, or need a trusted partner to handle your data, our team is here to help. Schedule a free consultation to learn how.
Blog Last Updated on 3 months by New Path Digital