Business analytics get more and more sophisticated as time goes on. The development of custom software allows all sorts of businesses to track all sorts of metrics.
But where does a big data warehouse fit into all this? And can your company facilitate its development with it? Well, that’s the question I’m looking to answer.
Is It Just Big Data?
The short answer is: no. A big data warehouse has elements of big data but the digital architecture also functions similarly to a standard data warehouse. This kind of software is really fascinating because of its ability to consolidate data as well as analyze information from any data repositories you work with.
So summing up, big data refers to unprocessed data from various sources. And a data warehouse, stores data with the aim of analysis and organization. When we combine these technologies, we get a big data warehouse.
How Does It Impact A Firm?
As with all aspects of life, there are definitely pros and cons to a big data warehouse. The effects of either category are largely dependant on the nature of your company. Some factors to consider:
- Current extent of digitization
- How necessary large amounts of data are to your business
- Whether you’re running a large firm or an SMB
Once you’re clear on that let’s look into the benefits and drawbacks of working with this kind of software development.
- Informed decision making
- Quick response times to changes in the market
- Research and identify trends more easily
- Connect and integrate data compiled from heterogeneous sources
- Increased accessibility of data due to better organization of information
As much as custom software development companies may try, big data warehouses still have a few problems associated with them.
- Converting your current processes from scratch can actually incur a loss
- The high cost of installation, maintenance and staff training
- Data analysis can be slowed down by high volumes of queries and requests
So Who Really Needs It?
Keeping all this information in mind, what kind of company is in need of such software?
Realistically, if you run an SMB odds are you won’t require a big data warehouse. There’s no need to combine them into custom software unless you’re a large business that’s looking for a quick data analysis solution.
The nature of your firm also plays a role. Some industries rely on these kinds of digital architecture to provide customers with the best experience. So, a company involved with mobile app development will have a lot to gain from a big data warehouse regardless of its size. This is similarly applicable to e-commerce platforms.
Which brings me to my conclusion. A lot of articles talk about how irreplaceable big data warehouses are, and there is merit to those claims.
However, it still warrants mentioning that it’s just not practical or feasible for every business. Lacking resources, outdated technologies, and many other reasons can contribute to this.
So, if the benefits outweigh the costs then go for it. But try to go about this process strategically.