Data modelling

Definition
Data modelling is turning messy raw data into clean, defined tables that carry one trusted meaning wherever they are read.

Why it matters

Data modelling decides whether a question like "what is revenue this month" gets one answer or three. When every dashboard reads raw data directly, each one rebuilds the logic slightly differently. A model settles it once. Without one, a business spends hours arguing about whose number is right instead of acting on any of them.

It matters more with AI and automation. An agent asked to report on revenue will use whichever definition it finds first, so the definitions have to be findable and unambiguous.

How to apply it

  • Model a handful of core entities the business actually runs on, not every table that exists.
  • Decide the grain of each table: one row per what? One row per customer, per subscription or per invoice line.
  • Write business rules once inside the model and give each a plain-language name.
  • Test the model with simple checks, such as no duplicate customer IDs and no invoice without a customer, and keep definitions under version control so changes are reviewable.
  • Point every dashboard and report at the model, never at the raw source tables.
  • Revisit definitions when the business changes, such as a new plan or region.

What it is

Raw exports and event logs are full of duplicates, odd field names and inconsistent values. A data model sits on top and describes the business in a few core tables, such as customers, subscriptions and invoices. It also states how they connect: one customer can have several subscriptions, and each subscription produces many invoices.

A model also holds the rules that give numbers their meaning. What counts as an active customer? When does a trial become a customer? How is a refund treated? These rules are written once, inside the model, rather than rebuilt in every report.

Worked example

A company had three different figures for monthly recurring revenue: finance's spreadsheet, the product dashboard and one quoted from memory. Each treated trials and refunds differently. The team built one modelled subscriptions table with those rules encoded once, then pointed its reports at it. The three numbers became one.

  1. Article

    Data warehouse

    The place a model's tables usually live.

  2. Article

    Single Source of Truth

    The same principle, applied to where a fact is defined.

  3. Article

    ETL / ELT

    How raw data reaches the warehouse before it is modelled.

  4. Article

    Self-serve analytics

    What a clean model makes possible for non-specialists.