Summary:In simple terms, a database is an integrated collection of information that is logically organized so that it can be easily accessed, managed and updated. On the basis of content, a database can be classified into different types such as bibliographic, full-text, numeric and images. On the other hand, data warehousing refers to an electronically stored data that is meant for facilitating reporting and analysis. It serves to retrieve, analyze, extract, transform and manage the data dictionary. In data warehousing, many types of tools are used to extract, transform and load data into the repository.

Many people are confused between a database and data warehouse. Not many know as to why Business Intelligence systems are using Data Warehouse rather than Database to pull historical data? What is the difference between a Database and Data Warehouse?

Here are some valuable points that differentiate them from each other:

Database:

1- Database is commonly used for Online Transactional Processing (OLTP). This serves as a historical record.

2- To design the database, rational modeling techniques is used.

3- It is optimized for writing operation.

4- For analysis queries, performance is low.

Data Warehouse:

1- This is used for Online Analytical Processing (OLAP). It is meant for reading the data for users involved in business decisions.

2- It is an especially setup database used for reporting and analysis purposes.

3-It is meant to typically keep a very long history from several years to the entire life of the company so that all the old records can be viewed.

4-In order to save space and reduce redundant data, the tables and joins are normalized.

5- Ensures high performance for analytical queries.

6- In this, modeling techniques are used for database design.

General Data Flow- (Considering an example of An Online Insurance Registration)

1- First of all, it allows customers to enter the details in an online registration form.

2- To save the details, a customer needs to enter the ‘ Submit button’ in the form.

3- To retrieve the data from the database tables to the data warehouse tables, a businesses Intelligence Team of Insurance Company uses an ETL tool.

4- Finally, Businesses Management uses Business Reporting Tools to retrieve a Data Warehouse table for preparing business reports. For example, to see the customer details entered into an Online Registration Form by the customer.

Hence, there are many points that differentiate a database from a data warehouse, however both are used for several types of information, which is used for business and non-business purposes. They are integral parts of almost each and every business now to maintain valuable records. Online transactional activities cannot happen without the facility of database and data warehousing facilities. Useful information for businesses cannot be availed without tools for storing and retrieving data. Data is useful for everyone including researchers, businessmen, students, customers and many more. It is therefore that the significance of data tools have gained much more value now. There are various types of tools for extracting, storing and retrieving data in the market. They have different configurations and performance results.

This article has been written by a data warehouse expert.

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