Data Modelling Explained and How It Can Improve Millennial Businesses

Imagine opening the page of a math textbook, only to find so many words and figures scrambled randomly. These purposeless pieces of data cause you a great deal of confusion, however, you decide to flip to the next page only to see well-organized tables, diagrams, and arrows linking the data in the previous page to each other and showing you their inter-relatedness. Now, you have a clearer grasp of the information and you feel relieved.

Data Modelling bears a great deal of semblance to the above illustration. Data Modelling is the breakdown of complex information systems and their components, through portrayals that connect data points, data elements, and structures. The software used in building information systems as well as business projects incorporates data models to ensure the successful execution of ideas.

Before data models are built by data designers, consultations are made with the associates and members of a business entity to elicit vital information that would form the framework of the data model.

Types of Data Models

Just as the writer of a book begins with the identification of characters, assignment of roles, and then to the full development of the plot, so do data designers have set down methods of developing a data model.

Three of the core types in the design of data models include;

1. The Conceptual Model: This model is the base or domain model that comprises important elements which business administrators want to be included in the data model. The relationship between the elements or entity classes is identified using linkages that form the periphery of the models. This model incorporates the usage of terminologies specific to the business and provides insight into the details that would form the resultant data model.

2. Logical Data Model: This is an improvement from the conceptual data model that provides further in-depth details about the previously outlined concepts in the conceptual model. Data attributes are further highlighted and this model is utilized in models that require a surge of data.

3. Physical Data Model: These contain additional tables that indicate the inter-relatedness of entities. Outlines indicating the location and ways in which data will be physically stored are included.

Stages in Data Modelling

1. Extrapolation of entities: Entities that form the core of the model are pinpointed. These are important concepts that are generated at the initial stages of the data model design. An entity with the name, Goods’ can be identified.

2. List the attributes of the entities: Further details of the entity are listed. An entity called Goods’ can be associated with attributes such as; name, quantity, size, and color.

3. Linkage of entities: The relationship between entities is demonstrated here. The entity called Goods’, can be linked to another called Date‘.

4. Use data modeling patterns to link attributes to entities: Business domains have unique patterns that can be used to link attributes to entities.

5. Link attributes and entities with keys and normalization techniques: To avoid the continuous calling of entities, keys, and normalization techniques identify entities and serve as linkages of the entities.

Logical Data Models that are record-based

Relational Model: This employs rows and columns in the graphical representation of information. Attributes are specified in columns while details about the entities are written in rows.

Context Data Model: This form of model Incorporates different data models to execute specific tasks.

Object-oriented Data Model: The object is a fusion of entities and their relationships. Several objects can be connected through links because they have common attributes.

Hierarchical Model: In this model, data is organized in the form of a hierarchical tree with the top containing the root data which has branches that spread across the model.

Network Models: A pictorial representation of an object having two parents is possible with this model but this is not feasible with the hierarchical model.

Entity-Relationship Model: Through visuals and graphics, entities, attributes, and the relationships between them are depicted. The entities are concepts while the attributes are the characteristics of these concepts that are linked through relationships.

The relevance of Data Modelling to Millennial Businesses

In our fast-moving world marked by technological advancement, millennials (people born between the early 1980s to the 1990s) are changing the traditional ways of running businesses. Information Technology firms that render services such as Affiliate marketing, website designing, and development, graphics designing, copywriting, digital marketing services, etc., can benefit from Data Modelling. According to McKinsey, a retailer using Big Data and advanced data modeling techniques, to leverage the potential of understanding important business KPIs, that will increase margins by more than 60%.

Companies involved in any kind of business offering services to their customers rely heavily on digital marketing channels and use data models to extract useful insights from data to make critical decisions.

Meanwhile, analysis of Data Models can yield the following benefits;

1.Maintaining the guiding rules and principles of business: Data Models contain numerical and qualitative data that provide the framework for businesses. The rules and requirements guiding businesses can be referred to using Data Models. These models are regularly updated so that they do not become obsolete.

2.Effective management of large data volumes: At a glance, shareholders in a business can obtain important information without having to stress themselves by reading myriads of information.

3.Ease of communication between the Information Technology and Non-technical departments of a business: The IT team interacts with business stakeholders to build information systems and databases that can be understood in lay terms. Employers can thus easily obtain core information about the business from the blueprint.

4.Faster identification of flaws: After the data model is deployed, it can be reviewed to discover flaws. It could also be upgraded or improved upon.

5.Guarantees Data Storage for future reference: Data models used in building information systems for businesses serve as repositories for important information that can be referenced over time.

6.It provides accurate analytics and big data for companies to draft effective marketing strategies: In this digital age, marketing ideas are now determined by the analytics of past data. Thanks to data modeling; organization can now utilize accurately analyzed data to run a successful marketing campaign.

Data Modelling Tools

The right data modeling tools for a business to employ will be ultimately decided by the IT administrators after considering the data security principles as well as other core organizational standards. Some tools that can be effectively harnessed include;

• Postico
• Erwin Data Modeler
• Squirrel SQL Client
• Draw.IO
• LucidChart, among others.

Sometimes a combination of models may be required to execute the expectations of business shareholders.