Difference between Data Warehouse and Data Mining

Difference between Data Warehouse and Data Mining

Even though they both talk about data management systems, data warehouse and data mining are two different things. Both can be used in companies to manage data. But of course, data warehouse and data mining have different features, advantages, and work patterns.

Therefore, in order to better understand the data warehouse and data mining, we have prepared some important information for you to understand more about the concept of data storage and processing in the IT world. Thus, you can choose which data management system is needed for your company.

Data Warehouse

The data warehouse is a data management system that collects data and information. The data and information that has been collected will be analyzed and then used for certain purposes according to the company’s needs. The collected data in the data warehouse is from the internal database, external database, and even from several sources that still have a correlation with the target data to be collected.

The data warehouse ensures that all data and information collected has the same quality so that the system can perform an accurate analysis.

Features in Data Warehouse

The following are some of the features that you can find in a data warehouse, namely:

  • The data warehouse is oriented to subject data that encourages the movement of companies, such as consumers and products. Then, it will be processed into data analysis forms that can help companies make important decisions.
  • A data warehouse has an information collecting period, so it can be analyzed by comparing data and information at a certain period accurately.
  • The data warehouse collects data from various sources and then compiled it in an integrated manner so that you can read all the data in a complete and structured document.
  • The quality of data and information that has been entered into the data warehouse will be maintained and can never be changed again.

Advantages of Data Warehouse

A data warehouse has advantages for a company such as:

  • Cost savings because all data and information are stored in software or the cloud internet, so you don’t need the hardware.
  • Performance productivity within the company can increase thanks to accurate data access and regular data collection from various sources.
  • The data collected by the data warehouse is always consistent and high quality.

Read also: Definition of Data Warehouse, Characteristics, and Examples

Data Mining

Data mining is a data management system that focuses on patterns and correlations between various data. You can use data mining to predict customer behavior by its work pattern. Data mining work pattern is formed to be able to analyze data and then build a risk model from the data that has been collected.

Data mining utilizes AI, statistical data, databases, and other machine learning systems to see business behavior and trends related to the business run by a company.

Features Included in Data Mining

If you want to use data mining to get the results of analyzing market behavior patterns, then you can get the following features:

  • Data mining can collect data automatically based on predefined patterns
  • Data mining can help you predict the market risk so that the company can achieve the results according to the expected target.
  • Data mining focuses on collecting data from large-scale databases.
  • All data and information collected by data mining can be followed up according to company decisions.

Advantages of Data Mining

Data mining has advantages that are useful for your business as follows:

  • Can detect fraud found from phone calls, insurance claims to bank fraud.
  • You can utilize data mining analysis results based on the latest trend data in the market. So, it can provide benefits for your company in terms of arranging the right sales strategy.
  • Data mining can collect data and information that can be used to create a financial market model so that you can take into account the costs to be incurred in one production.

Read also: Understanding the Difference between Database and Data Warehouse

Consult Your Database Needs with AdIns

That’s the difference between data warehouse and data mining you need to know. Consult your data management system to improve your business with AdIns now, and we are ready to provide the best IT solutions just for you.

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Author :

Ad Ins

Published date :

26 July 2021