Database is the collection of information stored in systematic manner. It is the repository of information that is used as a backing data storage for some specific application or a set of applications. Database is often used for online transaction processing that includes accessing and updating data online in near real time with multiple concurrent accesses. According to Wallace (2015), "database is an integrated collection of information that is logically related and stored in a way to minimize duplication and facilitate rapid retrieval.”
The use of database helps an organization to reduce redundancy and inconsistency, improve information integrity and accuracy, enhance ability to adapt to changes, improve performance and scalability and increase security. In order to create and manage database, organizations use Database Management System (DBMS). It simplifies the process of data recording and retrieval that helps in efficient operation.
Data warehouse, on the other hand, is a system that pulls data from various sources within an organization together for the purpose of analysis and reporting. Data warehouse is generally used for online analytical processing that assist in decision making process. Data warehouse can be defined as a central source of the data that have been cleaned, transformed, and cataloged so that they can be used by managers and other business professionals for data mining, online analytical processing, business analysis, and decision support. Thus database is a component of data warehouse.
For example, in a hospital the general information of patients like name, age, address, diagnosis, referred doctor, date of appointment etc. are the recorded in the database on daily basis. The database contains only the current data ignoring the historical ones. The database can be accessed by multiple users simultaneously without affecting the system’s performance. The data warehouse is used to analyze the age of the people visiting hospitals, the hospital admission rate of people, the medicines that are highly demanded, number of patients with similar diagnosis that supports in decision making.
To conclude, database focuses on systematic recording of the information while data warehouse provides historical information that support in decision making. However integrating the database and data warehouse together to form a system that can support recording of transaction and analytics can eliminate data latency and avoid delay in business insights.
References
Wallace, P. (2015). Introduction to Information Systems (2nd ed.). New Jersey: Pearson Education, Inc.
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Database is the collection of information stored in systematic manner. It is the repository of information that is used as a backing data storage for some specific application or a set of applications. Database is often used for online transaction processing that includes accessing and updating data online in near real time with multiple concurrent accesses. According to Wallace (2015), "database is an integrated collection of information that is logically related and stored in a way to minimize duplication and facilitate rapid retrieval.”
The use of database helps an organization to reduce redundancy and inconsistency, improve information integrity and accuracy, enhance ability to adapt to changes, improve performance and scalability and increase security. In order to create and manage database, organizations use Database Management System (DBMS). It simplifies the process of data recording and retrieval that helps in efficient operation.
Data warehouse, on the other hand, is a system that pulls data from various sources within an organization together for the purpose of analysis and reporting. Data warehouse is generally used for online analytical processing that assist in decision making process. Data warehouse can be defined as a central source of the data that have been cleaned, transformed, and cataloged so that they can be used by managers and other business professionals for data mining, online analytical processing, business analysis, and decision support. Thus database is a component of data warehouse.
For example, in a hospital the general information of patients like name, age, address, diagnosis, referred doctor, date of appointment etc. are the recorded in the database on daily basis. The database contains only the current data ignoring the historical ones. The database can be accessed by multiple users simultaneously without affecting the system’s performance. The data warehouse is used to analyze the age of the people visiting hospitals, the hospital admission rate of people, the medicines that are highly demanded, number of patients with similar diagnosis that supports in decision making.
To conclude, database focuses on systematic recording of the information while data warehouse provides historical information that support in decision making. However integrating the database and data warehouse together to form a system that can support recording of transaction and analytics can eliminate data latency and avoid delay in business insights.
References
Wallace, P. (2015). Introduction to Information Systems (2nd ed.). New Jersey: Pearson Education, Inc.