Term ETL refers to methods access and manipulate source data and load it into target data. ETL is the abbreviation of three words Extract, Transform and Load.
Purpose of ETL process is to extract data, mostly from different types of systems, transform it into a structure that’s more appropriate for reporting and analysis and then finally load it into the target database, usually a data warehouse.
Assume that you are the manager of a large retail store where your customers want range of products including cosmetics, soft drinks, toiletries, Over-the-counter drugs, toys, processed foods and more. How does your customer feel when you have cosmetics in a separate store and then processed foods in another store in a far away distance. In reality, such a retail store does not serve the purpose of one stop shopping. This will create inconvinience to the customer as well loose the sales for the store owner.
Concept of business intelligence is simple one but not always well understood.
Take an example of a local retail store. In few months time, the store owner notices reduction in sales and reasons that customers are buying in another similar store opened nearby which offers more competitive price.