Modern Data Stack

Companies have always had a tremendous amount of raw data, but what is the best way to process it? The last several years have seen many changes in the way companies store and use their data. They need to get it all in one location, categorize it, organize it, then take out any data that isn’t serving their purposes. To be successful, it’s a process that needs to be fast and smooth. 

With the advent of cloud technology in data storage, businesses are now able to design a system to collect, store, move, and analyze their data that is customized to their business and their specific needs. This is known as the Modern data stack. Let’s explore a few of the benefits of this emerging technology that is revolutionizing the way companies operate their businesses.

Does Your Data Stack Have a Cloud-Based Data Warehouse?

One of the main items in the modern data stack is a data warehouse. In the years before the modern data stack, companies would have their data storage on site at their location, but now data storage has moved into the cloud, giving companies several strategic advantages. 

When businesses are starting out, they probably aren’t collecting vast amounts of data. But as the businesses grow, their needs begin to change and get more complex. They add in third-party applications to their data stack to deal with their needs, but the result is several different pieces that must be integrated into the process. Engineers spend their time maintaining these pieces and finding ways to merge the data. This can be expensive in both equipment and time spent, as well as inefficient. 

With the modern data stack and a cloud-based data warehouse, pieces can now be designed to be interchangeable. Companies aren’t being locked in to working with a specific vendor, they have the ability to make changes in their equipment quickly, based on their specific needs. This means they aren’t investing heavily in their infrastructure, they’re paying only for the data they are using in the cloud. 

In addition, companies collect information from many sources, but historically, they haven’t had a primary location to store it that was easy to access. Having their data in one location means employees aren’t accessing multiple sets of data in different locations and making decisions based on data that isn’t uniform across the company. A cloud-based data warehouse in the modern data stack gives companies a single source of truth. 

What Are You Using for Your Data Pipeline?

Companies collecting information need a process to move the information to the cloud-based data warehouse. This is the data pipeline. It is vital that the data can be moved to the warehouse with the minimal amount of effort. If it takes too much time, it becomes inefficient and not cost-effective. 

Data pipelines in the modern data stack need to be scalable. Your needs will change as your business grows, so your data pipeline will have to be flexible as well. Perhaps your business will expand into using machine learning or artificial intelligence. The data pipeline you choose should be able to handle expanded capabilities. 

You Will Need a Data Transformation Tool

Once your data has reached the cloud and your data warehouse, it will need to be cleaned up so it can be analyzed. Items need to be renamed, information must be combined and aggregated so your employees can create data models. They will be making decisions based on the data, so it’s important that the information is uniform across the company.

What Is Your Analytics Layer?

The analytics layer of your modern data stack uses business intelligence to explain what is currently happening with your company and help you make predictions of the future so you can focus your decisions on the outcomes that will be most profitable. Analytics are much faster now than they used to be, so companies can act on the data quickly and retain opportunities they would have previously missed out on while waiting for the data to compile. 

Your data analytics integrate with your other data stack components and provide your employees interactive dashboards so they can extract insights from the data. The tools from your analytics layer are designed to be accessible by non-technical people, so everyone in the company can make decisions, not just specialists. 

The Modern Data Stack Is Easy to Use

Employing a modern data stack with a cloud-based data warehouse, data pipeline, data transformation tool, and analytics layer will make your company’s data and information available to all your employees and reduce costs and inefficiencies. It can be the difference between what will make a company succeed or fail, so consider making it a part of your business.

Read more:-https://networkustad.com/2022/09/15/four-ways-to-perform-data-transformation/