Database Vs Data Warehouse A Comparative Review

Insights
Database vs Data Warehouse:

A Comparative Review
By Drew Cardon
The important fact is that

a transactional database
doesnt lend itself to
analytics. To effectively
perform analytics, you
need a data warehouse.
A question I often hear out in the field is: I already have a database,
so why do I need a data warehouse for healthcare analytics? What
is the difference between a database vs. a data warehouse? These
questions are fair ones.
Ive worked with databases for years in healthcare and in other
industries, so Im very familiar with the technical ins and outs of
this topic. In this post, Ill do my best to introduce these technical
concepts in a way that everyone can understand.
Before diving in to the topic, I want to quickly highlight the importance
of analytics in healthcare. If you dont understand the importance
of analytics, discussing the distinction between a database and a
data warehouse wont be relevant to you. Here it is in a nutshell.
The future of healthcare depends on our ability to use the massive
amounts of data now available to drive better quality at a lower cost.
If you cant perform analytics to make sense of your data, youll have
trouble improving quality and costs, and you wont succeed in the
new healthcare environment.
The High-level Distinction Between Databases and Data

Warehouses
What I will refer to as a database in this post is one designed to
make transactional systems run efficiently. Typically, this type of
database is an OLTP (online transaction processing) database.
An electronic health record (EHR) system is a great example of
an application that runs on an OLTP database. In fact, an OLTP
database is typically constrained to a single application.
The important fact is that a transactional database doesnt lend itself to
analytics. To effectively perform analytics, you need a data warehouse.
A data warehouse is a database of a different kind: an OLAP (online
analytical processing) database. A data warehouse exists as a layer
on top of another database or databases (usually OLTP databases).
The data warehouse takes the data from all these databases and
creates a layer optimized for and dedicated to analytics.
Copyright 2014 Health Catalyst
So the short answer to the question I posed above is this: A database

designed to handle transactions isnt designed to handle analytics. It
isnt structured to do analytics well. A data warehouse, on the other
hand, is structured to make analytics fast and easy.
In healthcare today, there has been a lot of money and time spent on
transactional systems like EHRs. The industry is now ready to pull
the data out of all these systems and use it to drive quality and cost
improvements. And thats where a data warehouse comes into play.
Databases versus Data Warehouses: The Details

Now that you have the overall idea, I want to go into more detail
about some of the main distinctions between a database and a
data warehouse. Because Im a visual person (and a database guy
who likes rows and columns), Ill compare and contrast the two in
table format.
Database
Data Warehouse
Definition
Any collection of data organized for

storage, accessibility, and retrieval.
A type of database that integrates

copies of transaction data from
disparate source systems and
provisions them for analytical use.
Types
There are different types of databases,

but the term usually applies to an OLTP
application database, which well focus
on throughout this table.Other types of
databases include OLAP (used for data
warehouses), XML, CSV files, flat text,
and even Excel spreadsheets. Weve
actually found that many healthcare
organizations use Excel spreadsheets to
perform analytics (a solution that is not
scalable).
A data warehouse is an OLAP database.

An OLAP database layers on top of
OLTPs or other databases to perform
analytics.An important side note about
this type of database: Not all OLAPs
are created equal. They differ according
to how the data is modeled. Most data
warehouses employ either an enterprise
or dimensional data model, but at
Health Catalyst, we advocate a unique,
adaptive Late- Binding approach. You
can learn more about why the LateBinding approach is so important in
healthcare analytics in Late-Binding vs.
Models: A Comparison of Healthcare
Data Warehouse Methodologies.
Similarities
Both OLTP and OLAP systems store and manage data in the form of tables,
columns, indexes, keys, views, and data types. Both use SQL to query the data.
Database
Data Warehouse
How used
Typically constrained to a single

application: one application equals one
database. An EHR is a prime example of
a healthcare application that runs on an
OLTP database. OLTP allows for quick
real-time transactional processing. It is
built for speed and to quickly record one
targeted process (ex: patient admission
date and time).
Accommodates data storage for any

number of applications: one data
warehouse equals infinite applications
and infinite databases.OLAP allows for
one source of truth for an organizations
data. This source of truth is used to
guide analysis and decision-making
within an organization (ex: total patients
over age 18 who have been readmitted,
by department and by month).
Interestingly enough, complex queries
like the one just described are much
more difficult to handle in an OLTP
database.
Service Level
Agreement
(SLA)
OLTP databases must typically meet

99.99% uptime. System failure can
result in chaos and lawsuits. The
database is directly linked to the front
end application.Data is available in real
time to serve the here-and-now needs
of the organization. In healthcare, this
data contributes to clinicians delivering
precise, timely bedside care.
With OLAP databases, SLAs are more

flexible because occasional downtime
for data loads is expected. The OLAP
database is separated from frontend
applications, which allows it to be
scalable.Data is refreshed from source
systems as needed (typically this
refresh occurs every 24 hours). It serves
historical trend analysis and business
decisions.
Optimization
Optimized for performing read-write

operations of single point transactions.
An OLTP database should deliver subsecond response times.Performing large
analytical queries on such a database is
a bad practice, because it impacts the
performance of the system for clinicians
trying to use it for their day-to-day work.
An analytical query could take several
minutes to run, locking all clinicians out
in the meantime.
Optimized for efficiently reading/

retrieving large data sets and for
aggregating data. Because it works with
such large data sets, an OLAP database
is heavy on CPU and disk bandwidth.A
data warehouse is designed to handle
large analytical queries. This eliminates
the performance strain that analytics
would place on a transactional system.
Data
Organization
An OLTP database structure features

very complex tables and joins because
the data is normalized (it is structured in
such a way that no data is duplicated).
Making data relational in this way is
what delivers storage and processing
efficienciesand allows those subsecond response times.
In an OLAP database structure, data

is organized specifically to facilitate
reporting and analysis, not for quickhitting transactional needs. The data
is denormalized to enhance analytical
query response times and provide ease
of use for business users. Fewer tables
and a simpler structure result in easier
reporting and analysis.
Reporting/
Analysis
Database
Data Warehouse
Because of the number of table joins,

performing analytical queries is very
complex. They usually require the
expertise of a developer or database
administrator familiar with the
application.Reporting is typically limited
to more static, siloed needs. You can
actually get quite a bit of reporting
out of todays EHRs (which run on an
OLTP database), but these reports are
static,one-time lists in PDF format. For
example, you might generate a monthly
report of heart failure readmissions or
a list of all patients with a central line
inserted. These reports are helpful
particularly for real-time reporting for
bedside carebut they dont allow indepth analysis.
With fewer table joins, analytical

queries are much easier to perform.
This means that semi-technical users
(anyone who can write a basic SQL
query) can fill their own needs.The
possibilities for reporting and analysis
are endless. When it comes to analyzing
data, a static list is insufficient. Theres
an intrinsic need for aggregating,
summarizing, and drilling down into the
data. A data warehouse enables you to
perform many types of analysis:
Descriptive (what has happened)
Diagnostic (why it happened)
Predictive (what will happen)
Prescriptive (what to do about it)
This is the level of analytics required to
drive real quality and cost improvement
in healthcare.
I hope the information Ive included here has helped you understand
why data warehouses are so important to the future of healthcare.
Improving quality and cost requires analytics. And analytics requires
a data warehouse.
An OLTP database like that used by EHRs cant handle the
necessary level of analytics. My rule of thumb is this: If you get
data into your EHR, you can report on it. If you get it into a data
warehouse, you can analyze it.
Its that simple.
About the author

Drew Cardon joined Health Catalyst in November 2011 as
a data architect. Prior to this, he worked for nine years in
the state tax and revenue industry as a project manager
and implementation consultant with Accenture, and later
with Fast Enterprises. He was involved in the installation
of large information technology systems for the State Tax
Commissions in Arizona, Utah, and Oklahoma. He holds a
Bachelors degree in business from Brigham Young University
and an MBA from the University of Notre Dame.

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What is the difference between a database and a data warehouse?

What is the difference between a database and a data warehouse?

How are databases and data warehouses optimized differently?

How are databases and data warehouses optimized differently?

Insights

Database vs Data Warehouse:

The important fact is that

The High-level Distinction Between Databases and Data

Copyright 2014 Health Catalyst

So the short answer to the question I posed above is this: A database

Databases versus Data Warehouses: The Details

Any collection of data organized for

A type of database that integrates

There are different types of databases,

A data warehouse is an OLAP database.

Copyright 2014 Health Catalyst

Typically constrained to a single

Accommodates data storage for any

OLTP databases must typically meet

With OLAP databases, SLAs are more

Optimized for performing read-write

Optimized for efficiently reading/

An OLTP database structure features

In an OLAP database structure, data

Copyright 2014 Health Catalyst

Because of the number of table joins,

With fewer table joins, analytical

About the author

Copyright 2014 Health Catalyst

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