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Understanding the importance of Data Modelling and the need for Data Vaulting


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  • The Crucial Role of Data Modeling and Data Vaulting in Unlocking Business Insights and Efficiency.


  • Data is the lifeblood of modern organizations, driving decision-making, enhancing operational efficiency, and fueling innovation. However, managing data effectively requires a strategic approach that ensures its accuracy, consistency, and usability. This is where data modeling and data vaulting come into play, playing a pivotal role in unlocking business insights and optimizing processes.



  • Data modeling, like creating a blueprint for a complex structure, provides a structured framework for understanding and integrating diverse technologies and systems. It enables data analysts to make sense of the ever-growing complexity of AI, ML, dashboards, and siloed systems. By establishing clear relationships and definitions between data entities, a data model helps resolve naming discrepancies and ensures a unified understanding across the organization. 
  • But a comprehensive data model alone is not enough. That’s where data vaulting enters the picture, addressing the need for efficient data storage, retrieval, and access. Similar to a safe vault, data vaulting employs a standardized methodology for organizing and storing data, ensuring its integrity and security. It enables businesses to meet the diverse requirements of multiple users, just as different occupants of a house have distinct expectations and usage patterns. 

  • By implementing data vaulting, organizations can streamline data governance, improve data quality, and enhance collaboration across teams. With a well-designed data model and robust data vaulting practices, businesses can unlock valuable insights, enable data-driven decision-making, and optimize their operations. 



    Why do we need a data model? 

  • The recent article “Who Needs a Data Model Anyway?” by Bill Inmon highlights the importance of data modeling in today’s complex technological landscape. While some may argue that data models are outdated, the author presents several reasons why data models are more important than ever.

  • One crucial role of a data model is to provide a blueprint for integrating various technologies and systems. With the advent of AI, ML, transaction systems, spreadsheets, and other technologies, it becomes challenging for data analysts to make sense of the multitude of moving parts. Similar to how construction workers need a blueprint to build a skyscraper, data analysts require a data model to understand how different technologies fit together.

  • Another reason for the necessity of data models is the presence of data silos within organizations. In different systems, the same entity may have different names and definitions, causing confusion. A data model acts as a beacon, resolving naming and definition discrepancies and providing a common understanding of data.

  • Furthermore, a data model serves as a lighthouse for data by representing the ideal state of how data should be structured in the future. It sets a well-defined goal and helps align the data of a corporation accordingly. Without a clear vision provided by a data model, it becomes challenging to make progress in achieving data alignment.

  • The author emphasizes that even with the emergence of new technologies and agile methodologies, the need for a data model remains. Simply stacking technologies or using agile approaches does not eliminate the need for a structured and well-defined blueprint for data.



Why Data Vaulting?



  1. Imagine you want to build a house, but you don’t have the blueprint or plan to guide you. You would need to rely on guesswork and trial and error, which could lead to mistakes and inefficiencies. In the same way, businesses and organizations have a lot of information stored in their computer systems that they need to understand and use effectively. This information comes from various sources like customer data, sales records, employee information, and more.



  1. Now, think of datavaulting as creating a blueprint for organizing and accessing all that data. It’s like designing a detailed plan for building your house. With a blueprint, you can easily understand how everything fits together and make improvements when needed. Similarly, with a data vault, you can extract the relevant information from different systems and create a centralized and structured database that helps you analyze and understand your business operations.



  1. Just as a blueprint needs to be flexible and adaptable to accommodate changes during construction, a data vault needs to be robust and malleable to support the ever-changing needs of a business. It serves as the foundation for reporting, analysis, predictive analytics, and data science, enabling the people responsible for these tasks to access and utilize the data effectively. In this case, you have the opportunity to add levels to your building without impacting the existing ones.



  1. Data vaulting is akin to designing a blueprint for organizing and accessing data within a business. It facilitates a comprehensive understanding of operations and enables enhancements, similar to how a blueprint streamlines the construction of a house, catering to the diverse needs and expectations of its occupants. Just as individuals in a house have different requirements such as sleeping, eating, resting, and working, data vaulting recognizes and accommodates the varying expectations and usage patterns of multiple users.




Data vaulting is about creating a reliable and adaptable data platform for businesses.


There are two main challenges that data vaulting addresses:

  • First, as businesses grow and change, the needs of business analysts and data consumers also evolve. They may require different types of data presented in various ways. Adapting to these changing needs requires a flexible approach to development and delivery.
  • Second, as the business environment becomes more complex, new sources of data emerge, and understanding the relationship between different data becomes crucial.

Data vaulting ensures that historical data is preserved, and new data sources can be integrated quickly and reliably.

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