A data warehouse is a technique for collecting and managing data from varied sources to provide meaningful business insights. It is a blend of technologies and components which allows the strategic use of data.

Data Warehouse is electronic storage of a large amount of information by a business which is designed for query and analysis instead of transaction processing. It is a process of transforming data into information and making it available to users.

Data warehouses use a different design from standard operational databases. The latter are optimized to maintain strict accuracy of data in the moment by rapidly updating real-time data. Data warehouses, by contrast, are designed to give a long-range view of data over time. They trade off transaction volume and instead specialize in data aggregation.

Many types of business data are analyzed via data warehouses. The need for a data warehouse often becomes evident when analytic requirements run afoul of the ongoing performance of operational databases. Running a complex query on a database requires the database to enter a temporary fixed state. This is often untenable for transactional databases. A data warehouse is employed to do the analytic work, leaving the transactional database free to focus on transactions.The other benefits of a data warehouse are the ability to analyze data from multiple sources and to negotiate differences in storage schema using the ETL process.

Data warehouses are expensive to scale, and do not excel at handling raw, unstructured, or complex data. However, data warehouses are still an important tool in the big data era.

Data mining is looking for hidden, valid, and potentially useful patterns in huge data sets. Data Mining is all about discovering unsuspected/ previously unknown relationships amongst the data.It is a multi-disciplinary skill that uses machine learning, statistics, AI and database technology.The insights extracted via Data mining can be used for marketing, fraud detection, and scientific discovery, etc.

Some most Important reasons for using Data warehouse are:

  • Integrates many sources of data and helps to decrease stress on a production system.
  • Optimized Data for reading access and consecutive disk scans. Data Warehouse helps to protect Data from the source system upgrades.
  • Allows users to perform master Data Management.
  • Improve data quality in source systems.

Some most important reasons for using Data mining are:

  • Establish relevance and relationships amongst data. Use this information to generate profitable insights
  • Business can mark informed decisions quickly Helps to find out unusual shopping patterns in grocery stores.
  • Optimize website business by providing customize offers to each visitor.
  • Helps to measure customer’s response rates in business marketing.
  • Creating and maintaining new customer groups for marketing purposes.
  • Predict customer defections, like which customers are more likely to switch to another supplier in the nearest future.
  • Differentiate between profitable and unprofitable customers. Identify all kind of suspicious behavior, as part of a fraud detection process.


  • https://www.youtube.com/watch?v=KNV8U2vGz48
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