Data Warehouse and Mining

Business intelligence derived from data warehousing and data mining has become one of the most strategic management tools today, providing organizations with long-term competitive advantages in today’s online business environment. According to Edgar F. Codd, the father of the relational database models "Today's markets are much more competitive and dynamic than those in the past. Business enterprises prosper or fail according to the sophistication and speed of their information systems, and their ability to analyze and synthesize information using those systems. The numbers of individuals within an enterprise who have a need to perform more sophisticated analysis is growing." (Codd, Codd, & Salley, 1998). In today’s technologically charged society, there’s no question that information derived from data mining and warehousing not only play a role in making timely business decisions but also allows managers to respond to changes in the business environment.

Data warehousing and data mining are two powerful ideas that make use of technology to transform data into usable information. A data warehouse stores large quantities of data by specific categories. Warehouses enable executives and managers to work with vast stores of data and make more informed business decisions. Business analysts predict that every business will have a data warehouse within ten years however; merely storing data in a data warehouse does a company little good. Acme Global Consulting Services will want to learn more about the data they store in order to improve their knowledge of their customers and markets. The business benefits by extracting meaningful trends and patterns data (Alexander, n.d.).

Data mining converts data into high-quality information to meet all enterprise reporting requirements for all levels of users (Lam, 2014). Although data mining is still a new concept, companies in a variety of industries - including retail, finance, health care, manufacturing transportation, and...