Data model: concept, importance and best practices

Every day a large amount of data is generated within a company. However, for this data to be useful, it must be properly organized. This is where the data model becomes relevant, as it allows for more efficient manipulation and analysis. 

Knowing its importance, we will explain in detail what a data model is, the types and best practices to achieve an effective model.

This way, you will be able to transform and achieve greater potential in your business from data.

WHAT IS A DATA MODEL?

A data model is an organized way of presenting and understanding information. It consists of describing how data is stored, processed and accessed in a system or database.

They define how data relates to each other, how it fits together and how it can be manipulated.

Importance of data models

Data modeling is very important because only then you can analyze, retrieve and use the data obtained in an intelligent and strategic way.

Nowadays, companies obtain a large amount of information from various sources, butsimply storing it is not sufficient;  it needs to be analyzed to inform profitable business decisions.

Therefore, data modeling is indispensable in business because it helps you with the following:

Data organization

It is key to have well-structured data to facilitate its understanding and use. With this, it is always easier to access what is needed at the right time without having to waste time searching through large amounts of information.

Consistency

By defining the relationships between pieces of data, a model allows you to maintain consistency, ensuring that the data being stored is accurate and reliable across applications or platforms.

Decision making

When data is structured, updating, analyzing, and deriving valuable insights become much easier. It also facilitates the identification of trends, patterns, and areas for improvement.

In addition, with more effective management, errors are reduced and the accuracy of analysis is increased.

For example, in e-commerce, a data model can provide information on customer preference, product performance and market trends, allowing organizations to adjust their strategy, improve product selection and optimize the user experience.

Adaptability to change

As technology advances, data models can be changed or adapted without affecting the entire system.

Companies can grow and expand without complications, in a simpler and more effective way. It is only necessary to select the business software most suitable according to the needs. 

Best practices for the data model

To have the best results in the data model, it is important to consider some practices. Below, we explain the most important ones:

Understand the needs of the business

The first thing to do is to define your business needs. This way, the data model will be adjusted to the objectives.

Similarly, it is key to use images and graphs to facilitate the understanding of the data, since it is easier than analyzing a large number of numbers and detecting possible errors.

Use the necessary tools

Companies increasingly have more data at their fingertips and more ways to employ it, what they really lack is time.

In this sense, it is beneficial to have data and analytics platforms and strategy to simplify management and turn opportunities into value.

At London Consulting Group, we focus on helping companies develop their strategic, human and technical capabilities to achieve a vision centered on the value they can deliver, based on data.

Verify processes

The next thing is to verify that everything you are doing aligns with the objectives you are pursuing.

Make sure you have a way to collect the necessary data, how to process it and use it, so that it's actually useful for your business.

In case you test and see that something is failing, make adjustments.

You may also consider the option of working hand in hand with business or enterprise experts who care about your data model to ensure that the processes and tools are useful for your business.

Leverage your company's data with London Consulting Group

With a good control and management of data, through models, it is possible to achieve better results within any company.

With this in mind, at London Consulting Group we focus on accelerating data-driven transformation through the creation of a digital platform that facilitates the availability of information for new applications and business models.

The right platform with key data helps organizations grow rapidly, as the full potential of analytics and information is harnessed.

If you want to start achieving this in your business, contact us! We can help you make this process much simpler and more agile.