Every aspect of analytics is powered by a data model. A data model presents a “single source of truth” that all analytics queries are based on, from internal reports and insights embedded into applications to the data underlying AI algorithms and much more.

During development, a data model is created that addresses all the data stored in sources that could be called upon for a specific purpose. The primary aim when building a model is to transform complex, raw, real-world data into a coherent picture that can be used to answer likely questions from the business.

Designers, engineers, and analysts see data in different ways. The data model facilitates interaction among these groups by reformatting and restructuring data in order to define the relationship among datasets.

Another way of thinking about a data model is like an architect’s blueprint of a building: It helps create a conceptual model that sets the relationship among various data items.