Technatic | Databases and data warehouses are two popular choices in data management. Of course, you have to choose one of the two to store and manage a lot of business data. Sometimes you feel confused when choosing a suitable data storage system because you don't understand the difference between a database and a data warehouse.
What is a Database
A database is a collection of data and information that is stored in an organized manner and connected to each other. The data stored in the database has been arranged as automatically as possible so that it will not be difficult for you when you want to access the information contained in it.
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A database can also be interpreted as a system that is useful for collecting archives, tables and files. This system is connected in various electronic media which are used to access all this data.
What is a Data Warehouse
A data warehouse is actually a type of database. The difference is, a data warehouse is a system that can analyze and store historical data to improve a company's information needs. Examples of historical data can vary, such as sales data, profit and loss data, consumer data, and so on.
Data warehouse can also be combined with Business Intelligence technology. Its function is to create reports and visual analysis using historical data. Data sources that are neatly arranged in a data warehouse will produce more structured information. You can also make crucial decisions for business progress.
What are the Functions of a Database
Databases have quite an important function in storing company data. These functions include:
1. Improve Data Security
Almost all database products are equipped with a security system to protect the data stored in them. There are database products that have an encryption system so that only certain users can access the data. The database is also equipped with backup and recovery features which are useful for recovering data if damage occurs due to viruses.
2. Increase User Productivity
Using a database can also increase user productivity. The data search process runs more efficiently and does not take a long time because the data is stored in a structured manner. Users can also make business decisions based on information from the database.
3. Keep Data Clean
Databases are also useful for filtering data. You can delete data that is no longer needed, validate it, and install protection against the data. As a result, you will get better data quality.
What are the Functions of a Data Warehouse
A data warehouse has a different function than a database. The following is an explanation of its function.
- Provides insight into historical data: Historical data is a track record of information over a certain period or time. The data warehouse serves as the main source of historical data so that you can make accurate business calculations and predictions for the future.
- Helps users in making decisions: Historical data stored in the data warehouse can be the main reference for making business decisions. Any information contained in it must be prepared credibly and according to field facts so that it can be trusted.
- Increase Return of Investment (ROI): Return on Investment (ROI) is a comparison between net profit and investment costs incurred. You can perform data analysis and integrate data into several different sources. Business ROI also increases thanks to optimal use of the data warehouse.
Differences Between a Database and a Data Warehouse
The difference between a database and a data warehouse does not only lie in their function. There are still a number of other components that are indicators that differentiate these two data systems. Anything?
1. Data Processing System
The database uses OLTP (Online Transaction Processing), which is a data processing system that focuses on transactions. Employees need the latest and most accurate information, so a database is more ideal because it uses an OLTP system which contains short-term information such as daily.
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The data warehouse applies OLAP (Online Analytical Processing) which focuses on analysis and decision making. OLAP systems can collect historical and current data that is useful for data scientists, BI tools, and large-scale analysis.
2. Scale of Use
The database can accommodate up to thousands of users at the same time without reducing its performance because it uses an OLTP system. An example of the ideal use of a database is entering customer data that makes transactions in one day.
Meanwhile, the data warehouse can only be accessed by a limited number of users. The reason is, data warehouses require a lot of resources and do not have high scalability. An example of its use is digging up information from several accounting databases to find out irregularities in the calculation process.
3. Structure
Databases have efficient information structures so they can fulfill user requests more quickly. Information in the database is not duplicated in many tables, thereby speeding up the data processing process and increasing storage capacity.
As reported by bacaberita, the data warehouse has an information structure that is less efficient because it uses a read operating system. You can find the same or repeated information in one data warehouse because this system prioritizes read operations over write operations.