Technology Blogs by SAP
Learn how to extend and personalize SAP applications. Follow the SAP technology blog for insights into SAP BTP, ABAP, SAP Analytics Cloud, SAP HANA, and more.
cancel
Showing results for 
Search instead for 
Did you mean: 
jessica_tse
Explorer
0 Kudos
71
The world’s most valuable asset is data. Think about that for just one second. Organizations run on data – whether it’s restructuring financial data for profit maximization, utilizing marketing data to listen and empathize with customers, or optimizing IT data to ensure data quality is intact. However, the best companies utilize data to confidently make decisions. If data is at the backbone of every strategic business, how can organizations leverage data to its fullest? The key is with data optimization.

 

What is Data Optimization?


Data streams into an organization from different sources in a variety of structured and unstructured formats. This leads to increased risks of data inaccuracy, inconsistency, and redundancy that deteriorates the quality of data. These anomalies make it difficult to access critical information when decision-making. The phrase “garbage-in-garbage-out” represents the importance of data quality. Good data used in analysis leads to decisions you can count on.

Data optimization is a process that transforms the data into a logical schema format, where it unifies the structure into a single, consolidated way. Here, the data is organized and cleansed to maximize the speed of how information can be extracted, analyzed, and utilized in the cloud data warehouse. Once the consolidated data sources are merged into one, it can then be used in applications for statistic reporting, business intelligence analysis, and more. In cloud data warehouses, there are extraordinary amounts of information stored, as it retrieves and manages large bulks of data, hence slowing down the process. Data optimization reduces this complexity, allowing for agile data and flexible decision making.

 

The Importance of Data Optimization


Making effective use of data leads to a differentiating competitive advantage for a data-driven tech company. The speed and agility gained from data optimization allow organizations to respond to opportunities, while deflecting threats in the constantly evolving market. Data optimization is one of many benefits gained from implementing a cloud data warehouse.