The amount of data both available to, and generated by, a company is increasing exponentially. While some smaller to medium businesses are coping fine with the growth, many are struggling with managing their data, let alone leveraging it to help make better decisions. If you find that your business isn't coping with data, one solution may be to implement a data warehouse.
What is a data warehouse?A data warehouse is a system used by companies for data analysis and reporting. The main purpose of the data warehouse is to integrate, or bring together, data from a number of different sources into one centralized location. The vast majority of the data they store is current or historical data that is used to create reports or reveal trends.
Possibly the biggest benefit of a data warehouse is that it can pull data from different sources e.g., marketing, sales, finance, etc. and use this different data to formulate detailed reports on demand. Essentially, a data warehouse cuts down the time required to find and analyze important data.
While not every business will need one right this minute, a solid data warehouse could help make operations easier and more efficient, especially when compared with other data storage solutions. That being said, it can be tough to figure out if you actually need one. In order to help, we have come up with five signs that show your business is ready to implement a data warehouse.
1. Heavy reliance on spreadsheetsRegardless of business size, the spreadsheet is among the most important business tools out there. Used by pretty much every department in a company, they can be a great way of tracking data. The problem many business owners run across however is that spreadsheets can grow to immense sizes and can become unwieldy.
Combine this with the fact that each department has spreadsheets that you will likely need to pull data from in order to generate a report. If this is the case, you are creating manual reports, which can take a lot of your time.
If you are struggling to find the data you need because it is spread out across different sheets, in different departments, then it may be time to implement a data warehouse.
2. Data is overwhelming your spreadsheetsSpreadsheets are designed to operate with a set amount of data (rows and columns). Reach, or exceed this limit, and you will find that the file becomes sluggish or will downright prevent you adding more data.
While it can take a while to get to this point, companies will reach it if they keep adding to their data. At this point you will see a drop in productivity and overall effectiveness in how you use your data. Therefore, a data warehouse that can combine data from different sheets may be a great solution.
3. You spend too much time waitingIf you set out to develop a report, only to find out that you need to wait for colleagues to provide the information on their spreadsheets, or to analyze their data, you could find yourself waiting for a longer than expected time.
This makes you highly ineffective and can be downright frustrating, especially if employees are too busy or just can't provide the information needed. Implementing a data warehouse can help centralize data and make it available to all team members more effectively. This cuts down the time spent actually having to track it down and communicating with colleagues.
4. Discrepancies in data and reportsHave you noticed that when team leaders or members in different departments create reports that the data or findings are different from yours, or other reports? Not only is this frustrating, it is also time consuming to sort out and could lead to costly mistakes.
This can be amplified if some departments have data sources that they don't share with other teams, as this can throw doubt into the solidity of your data and other reports. If you have reached this point, and realize that there are discrepancies in your data, it may be time to look into a data warehouse which can help sort out problems while ensuring mistakes like duplicate data are eliminated.
5. Too much time spent generating reportsIdeally, we should be able to generate a report using existing data almost instantly, or with as few clicks as possible. If you find that when generating a report you have to keep going to different sources to check if the data is updated, or to keep manually updating other sources, you could quickly see the amount of time needed to develop a report grow.
Because data warehouses consolidate data, you only have to turn to one source for data. Combine with the fact that many data warehouses can be set up to automatically update if source data is updated or changed, and you can guarantee that the data you are using is always correct.
Looking to learn more about data warehouses, or about the different data solutions we offer? Contact us today.