What is Data Aggregation and how is it used in a data warehouse?
Tharunkumar Magudeeswaran
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Data aggregation is critical in data warehouses because it improves query speed and allows for more in-depth analysis. Data warehouses frequently hold vast amounts of data. Aggregation allows you to generate summary tables for faster querying rather than needing to calculate from comprehensive data every time. Aggregation can help offer crucial indicators such as monthly revenue, client count by region, best-selling products, and so forth. This is critical information for BI reports and dashboards.
Use of Data Aggregation in a Data Warehouse:Performance Improvement: Aggregated data reduces the amount of detail that needs to be processed for queries, which speeds up response times for reports and analytics.Simplified Analysis: Users can perform analysis on summarized data without needing to navigate through large datasets, making it easier to derive insights.Support for Business Intelligence (BI): Aggregated data is crucial for BI tools that generate dashboards, reports, and visualizations, helping stakeholders make informed decisions.Historical Analysis: Data warehouses often maintain historical aggregated data, allowing organizations to analyze trends over time and make forecasts based on historical performance.