Data Mart vs Data Warehouse: Understanding the Differences

What is the main difference between a data mart and a data warehouse?

a) Data marts store more historical data.
b) Data marts have fewer data sources.
c) Data marts require more complex hardware.
d) Data marts serve a broader range of departments.

Answer:

Data marts can be constructed more rapidly and at a lower cost than data warehouses because they have fewer data sources and store a limited amount of historical data.

A data mart can be constructed more rapidly and at lower cost than a data warehouse because data marts have fewer data sources. Instead of integrating data from multiple sources, data marts are designed to serve a specific department or a specific business need, which reduces complexity and cost. Additionally, data marts typically store a limited amount of historical data compared to data warehouses.

Benefits of Data Marts:

1. Cost-Effective: Data marts are more cost-effective to construct and maintain due to their focused nature and fewer data sources.

2. Faster Implementation: Data marts can be implemented quickly since they are designed for specific purposes and do not require extensive data integration.

3. Departmental Focus: Data marts are tailored to serve the needs of specific departments, enabling better decision-making and analysis within those departments.