A data warehouse is a central repository for data created or collected in a company. A data warehouse typically receives data from various sources, such as an ERP system or a customer service department where customer data is stored. The purpose of a data warehouse is to create a clean database that can be used to facilitate business decision making.
Why Do We Need A Data Warehouse?
Businesses typically use a variety of applications, tools and systems to collect data. Software creates data and stores it in different formats in different databases. But when data needs to be evaluated, it must first be normalized and harmonized into a single database. A data warehouse solves this problem by combining disparate and dispersed data, for example from a CRM sales system, into a single database. This transparent data structure enables strategic decision-making and effective knowledge management.
Data Warehouse Functionality
Raw data is extracted from different sources using an extraction and transformation process (ETL), cleaned and merged by transformation, and then transferred to the data warehouse. This process is performed at regular intervals to keep the data up-to-date. The data in the data warehouse is not only managed for content, but also archived for the long term, enabling benchmarking and providing a clear basis for planning.
Data Warehouse In CRM
The success of customer relationship management (CRM) is based on a well-functioning data warehouse system, which is a prerequisite for certain analyses to be carried out in order to develop and maintain customer relationships. A data warehouse system is therefore useful for a dialogue-oriented marketing strategy.
Marketing, service and sales planning concepts can be derived from these results. The resulting market information can increase the efficiency of sales staff and improve the analysis of the market situation, leading for example to a selective approach to target groups, which reduces waste and encourages innovative ways of approaching customers. In addition, a clear analytical basis allows you to respond quickly and effectively to customer needs and trends. The easy-to-use functionality of the data warehouse allows even non-technical users to find the data they need at any time and use it flexibly.
By integrating historical data, the data warehouse can also be used optimally to forecast the future.
Risks Related To Data Warehouse
When implementing data warehouse systems, there are a number of issues that can arise that can jeopardize the success of a CRM system, but many of these can be avoided with expert interpretation and planning. The following issues should be considered:
Careful planning should be a priority when implementing a data warehouse. This includes:
- Developing a realistic schedule and budget.
- Proper identification of all resources needed for implementation.
- Accounting for maintenance costs and scheduling.
Failure to address these issues can result in significant financial losses.
Proper Database Planning
The selection of the right data sources for the data warehouse is essential to establish a sound basis for decision making. It is important to use only good quality data and to ensure that the data is always up to date. Linking to the wrong data sources or using out-of-date data can lead to incorrect decisions on maintenance procedures.
Even with the best archiving systems, misinterpretation of data can occur. This can overload customers with information that is not relevant to them. If this happens, the error should be identified as soon as possible and the data manually corrected in the CRM system to avoid further damage.
Good User Input
When implementing new systems, it is an important requirement to train employees properly so that they can use them effectively. Lack of knowledge on how to use the software can quickly lead to frustration, reduced productivity and poor decision making.
A well-configured data warehouse is beneficial for any company that wants to take advantage of data flows and provide a basis for strategic decision-making. However, a data warehouse can only reach its full potential when combined with CRM and ERP systems. Ideally, corporate data should be combined with individual customer data stored in the data warehouse in an extended format to create an optimal data set. Modern ERP systems have an integrated CRM and data warehouse and allow for a meaningful evaluation of enterprise data.