Data warehousing is a system used to store and manage large amounts of data from different sources. It allows organizations to consolidate their data into a single repository, making it easier to analyze and generate reports. This centralized storage helps in improving data quality and accessibility. The process involves extracting data from various databases, transforming it into a suitable format, and loading it into the warehouse, often referred to as ETL (Extract, Transform, Load). By using a data warehouse, businesses can gain valuable insights and make informed decisions based on comprehensive data analysis.