Data is playing an increasingly important role in providing vital services such as market analysis, strategic decision-making and swift customer service. However, having data alone is not enough to demonstrate its effectiveness – it is how companies utilize it that makes a difference.
Data mining can be a powerful tool for business, but it is only so if the data has been properly extracted, processed and loaded (ETL). Once this step has been completed, the data can be mined for useful insights that may contribute to the company’s financial success.
It is important to consider whether ETL is necessary for your business. In this article, we will explore the techniques involved, the benefits it offers, and the resources available to enable you to make an informed decision.
The ETL Procedures
Data is extracted from a variety of sources, such as databases, CRMs or Excel spreadsheets, as part of the Extract, Transform, Load (ETL) process. All of this information is gathered and replicated in preparation for transformation.
Data must be transformed in order to be stored in the desired repository. According to TechRepublic, this transformation is based on data conversion rules outlined by IT to an ETL program. These rules may specify which fields must be included or excluded, which are then implemented through automated operations, as opposed to being carried out manually by IT staff.
In the final step of the process, known as ‘loading’, the ETL tool deposits the transformed data into a repository such as a data warehouse. This is where the ETL tool plays a vital role, as it creates new records for each individual piece of data.
Electronic Data Interchange (EDI) technologies can be implemented either in a local or an online environment. Extraction, Transformation and Loading (ETL) operations guarantee data quality, consistency and accessibility. Data warehousing is one of the applications of ETL and involves the storage of acquired and converted data. This data can then be used for Machine Learning, Business Intelligence and cloud migration purposes.
Gains from ETL Systems
ETL can be used to consolidate various data sets from multiple sources into one unified database, allowing organizations to eliminate discrepancies between sources and provide consistent data to all stakeholders. For example, sales managers may benefit from insights into the production process that they would not have had prior access to.
Furthermore, many ETL systems provide the necessary tools for a wide array of personnel to make important decisions. Due to time constraints, data engineers may not have the capacity to generate reports or carry out complex analyses. Nevertheless, newer technologies have enabled those with limited technical skills to achieve their objectives. Drag-and-drop features may be integrated to simplify the process, enabling managers and other personnel to access the data they require more quickly.
It is evident to all business users where the information originates from. If the central repository is not trusted, experts may need to utilize alternative sources. This is an important piece of knowledge, as the outcomes from these sources may not be compatible with other departments. With this understanding, experts can offer suggestions for incorporating pertinent data sources.
The Use of Data Warehousing and Transfer Software
When looking to purchase an ETL product, companies should consider the three different types of ETL tools available: cloud-based, on-premises, and hybrid. Depending on the individual needs of a business, any of these options could be beneficial. It is important to take the following factors into consideration when making a decision.
- Typical applications. Before settling on an ETL technology, decision-makers should have a firm grasp of the ETL’s intended purpose inside the company.
- Scalability. Consider not just the company’s immediate requirements, but also its possible demands in the next three to five years.
- Flexibility. Flexibility in handling more or less data is a must for any trustworthy ETL solution.
- Fixing things. Error processing and data verification capabilities are two essential features of any reliable ETL solution.
- Cost. It is important to assess whether the cost of the tool is appropriate for the business. Furthermore, having a good understanding of how the tool operates can be advantageous. Tools which can perform both ETL and ELT (Extract, Transform and Load) in one step may help to reduce costs.
To optimize the performance of a tool, it is beneficial to only collect the data that is required. The tools can be configured to only gather data that has been added or modified since the last process. Utilizing clean data and implementing Artificial Intelligence (AI) to automate the process are further effective measures.
An Increased Need for Information
Organizations that are successful in their field understand the necessity of gathering data from various sources to enable informed decisions on matters such as the establishment of new shop locations, the identification of products which will be popular with consumers and the assessment of how they stack up against their competition. In order to have a full understanding of the organization, its customers and the industry as a whole, decision makers require all relevant information in one place in order to make rapid, accurate decisions. To this end, ETL technologies provide invaluable support in consolidating essential data in one place.
The following characteristics are common among successful businesses that use ETL solutions.
- Businesses of all sizes that rely on vast amounts of collected and analysed data
- Businesses that need information from several sources
- Businesses that possess existing staff with expertise in Extract, Transform, Load (ETL) methodologies and technologies, or who are willing to invest in training staff in these areas, are strongly advised.
- Businesses that need deeper insights beyond what traditional business intelligence systems can supply
- Businesses that put a premium on using data to inform decisions
So, should you consider ETL for your business? The answer is most certainly “yes” if it fits any of the aforementioned categories.
