Data Modeling 101: Definition, Benefits & More

Thursday, 31 March 2022

Data Modeling 101: Definition, Benefits & More

Posted by Madhu Gupta
Did you ever stop to think how valuable your data is? The value of data increases as you begin to use it to power more business processes and decision-making.

However, in most instances, data is raw and unstructured. Plus, you don’t know what data can benefit your business processes. Coming out of this double-blind situation can be quite hard to do.

That is where data modeling and data science tools come in. Understanding what data modeling is can help you comprehend the potential value of your data and how to maximize it. That will increase your chances of tracking, storing, and recording even more data.

What is data modeling?

You can showcase your entire enterprise on a diagram through business processes. You can use many techniques to define your business processes and organize them into logical categories.

Data modeling is one of the most popular business process organization techniques. It is a visual representation of data points and structures that underpin each one of your business processes.

It can help you truly understand your business operations and discover their unique data requirements.

The essential goals of every data modeling initiative go as follows:
  • Define the type of stored data
  • Define the type of data in use
  • The relationships between data
  • The rules for data use cases

What is the role of data science tools?

Data science tools are quintessential for the success of any data modeling initiative. Data scientists used pen and paper to draw diagrams and communicate data models in the past. Today, we have data science tools to streamline this process.

These tools make the creation of data models easy and enable collaboration on data models and the shareability of completed models.

Data science tools can help you create easy-to-understand flowcharts and make sense of event-based data sets, schema-on-read, and unstructured data. With the right tool for the job, you can quickly pinpoint the most valuable data for your business processes.

The best tools for these purposes include, Lucidchart, Amundsen, SQuirreL SQL Client, Erwin Data Modeler, and others.

Why should you care about data modeling at all? Because it unlocks many benefits for your enterprise.

Top benefits of data modeling

Data modeling has the power to help your entire organization across all departments. Here are the most notable benefits.

Enhanced collaboration

Imagine your IT team communicating complex concepts to non-technical staff from other departments entirely hassle-free. That’s what data modeling introduces to your organization.

Thanks to easy-to-understand data models, everyone can get the hang of even the most complex technologies.

Everyone on your staff will understand the importance of data sets and rules and how they integrate with business processes. New doors to collaboration are open once everyone understands how your business operates and leverages data sets.
Improved cost-efficiency

Cost-efficiency and time-efficiency go hand in hand in the business world. The shorter the time-to-production period, the better, especially if you maintain the same quality of products and services.

Data modeling can help you improve cost-efficiency across the board and reduce time-to-production periods.

It achieves these effects on several fronts. It helps you establish core business rules. Then, it enables you to reduce the development time since you don’t have to go back to do revisions and re-implementations of strategies. Finally, it helps you catch errors more easily.

Reduced risk

Businesses face many challenges regarding data compliance. At the same time, they accumulate and intend to use more data year after year. How do you reduce data compliance risks then? The key is to have complete visibility and control over your data architecture.

Data modeling is the only initiative to help you achieve it, even if you use third-party data providers. With data models, you will have a clear view of your data, including less visible data such as filters, metadata, and transformations.

Improved business processes

To build data models, you need to map your business processes to understand how they work. Understanding what data they use and what information they need to be more optimal puts you in an advantageous position.

It helps you understand every cog in your big business machine and learn how to improve operations to achieve better results.


Data modeling enables you to organize and define your business processes yet again. It helps you understand the ins and outs of every business operation and discover all the data touchpoints that can help you propel your business to success.

Hopefully, the information above can help you decide if adding data modeling to your organization and data strategies is the right step for your business.


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