Identify the correct statement(s) about Data Warehousing (DW):

A. DW system must be acceptable to regulators and business community.
B. DW system must not be based on open source platforms
C. DW system must present information attractive to users.
D. DW system must be secure bastion that protects the information.
E. DW system must be adaptive to change.

Choose the correct answer from the options given below:

Correct option is C

A well-structured Data Warehouse (DW) is a critical tool in business intelligence, and its architecture and design must meet several core principles:

• A. Acceptability to regulators and business community:
  A DW must comply with regulatory standards (e.g., GDPR, HIPAA) and align with the expectations of stakeholders, ensuring data governance and ethical use.

• D. Security of the system:
  A DW holds critical business data, so it must be a secure bastion. It should protect against unauthorized access, breaches, and data manipulation. This includes access controls, encryption, and secure protocols.

• E. Adaptability to change:
  Business environments evolve. Therefore, a DW must be scalable and flexible, allowing integration with new data sources, accommodating schema changes, and supporting evolving business requirements.

These three statements align with the core principles of a robust data warehousing system.

Information Booster:

​A data warehouse must store structured, historical data that supports decision-making and reporting functions. It must serve as a single source of truth for business users and analysts. It should integrate data from different sources (e.g., ERP, CRM, flat files), transform it into a consistent format, and store it in a time-variant, non-volatile manner. DW systems often support OLAP (Online Analytical Processing) operations for multidimensional analysis. Ensuring adaptability means supporting changes in schema, data volume, business rules, and data formats over time. Security must be deeply embedded through role-based access controls and encrypted storage. Acceptance from regulators ensures the system supports audits and meets legal mandates. As business operations become increasingly digital and data-driven, DWs must support real-time ingestion, cloud storage, and AI/ML integration to stay competitive and compliant. These features together form the foundation of a modern, strategic DW system.

Additional Knowledge:

B. DW system must not be based on open source platforms – This is incorrect because many organizations successfully use open-source platforms like PostgreSQL, Apache Hive, Apache Hadoop, and others for data warehousing. Open-source systems are not only permissible but also cost-effective, scalable, and customizable for specific needs.

C. DW system must present information attractive to users – While presenting data in an attractive and user-friendly format is important, that function is typically handled by Business Intelligence (BI) tools like Tableau, Power BI, or Looker. The DW itself is responsible for efficient storage, integration, and retrieval of clean, structured data—not for presentation or visualization.