Data Modeling

TL;DR

• Designs structured representations of a domain using entities, attributes, and relationships.
• Produces diagrams or models that let systems store, retrieve, and analyze domain data.
• Supports analysis and decision-making by making real-world relationships explicit in data.

Definition

Data modeling is the process of designing and implementing a data structure that accurately and effectively represents real-world entities and their relationships. This involves identifying key entities, attributes, and relationships within a given domain, and then creating a visual representation of these entities and their relationships using a modeling tool or diagram.

Explanation

Data modeling identifies the important components of a domain (entities and their attributes) and the connections between them (relationships). The outcome is a model or diagram produced with a modeling tool that guides how a system stores, retrieves, and analyzes the domain’s data.

Examples

Customer relationship management (CRM)

Entities such as customers, products, and sales transactions are represented and their relationships are defined so customer data can be managed and analyzed. A CRM data model might include entities such as customers, products, orders, and invoices, and relationships such as customer-product, customer-order, and order-invoice. This model enables the CRM system to store, retrieve, and analyze data related to customer behavior and preferences, product sales and performance, and other key metrics.

Supply chain management

Entities such as suppliers, manufacturers, distributors, and retailers are represented and their relationships are defined to manage material and product flow. A supply chain data model might include entities such as suppliers, products, warehouses, and shipments, and relationships such as supplier-product, warehouse-product, and warehouse-shipment. This model enables the supply chain management system to store, retrieve, and analyze data related to supplier performance, product availability and demand, and other key metrics.

Use cases

• Enabling systems to store, retrieve, and analyze data related to entities and their relationships (for example, customer behavior and product sales).
• Providing structured models that support analysis of supplier performance, product availability, demand, and other operational metrics.
• Helping organizations gain insights into their operations and make more informed decisions.

Related terms

• Entities
• Attributes
• Relationships
• Modeling tool
• Diagram
• Customer relationship management (CRM)
• Supply chain management