Having a data scientist has become crucial for certain types of modern businesses. According to the general explanation, this is a branch of statistics that focuses on data extraction and gathering insights from that data.
Given that data science utilizes large quantities of data, you need a program that would handle all the information. By analyzing data, you can achieve the following:
- Determine why consumers are buying a specific product or a service.
- Promote your brand the right way.
- Reduce costs while simultaneously increasing revenues.
- Make it easier to predict and prevent frauds
- Improve your inventory by predicting customer needs in the future.
- Enhance overall customer journey.
A big part of the equation is data pipelines. In this article, I will explain what they are, how to use them, and I will go through their main benefits.
Data pipeline basics
A lot of people wonder what is a data pipeline? In a nutshell, it is a set of steps that transfer basic data from its source of origin to its final destination. If we were to be more precise, a source usually refers to certain types of databases, such as transactional databases. On the other hand, the destination is commonly a data warehouse.
Once the data reaches its destination, it is further processed so that the management can use it to make business decisions. The algorithm utilizes logical processing to shape this data into usable information.
Why are data pipelines important for your business?
With the development of cloud systems, companies can utilize various types of programs to simplify and streamline their business processes. For example, you have access to various marketing, accounting, logistics, resource management, and sales tools that will help you every step of the way. By using all these platforms, you create data silos through daily business activities.
Given that data silos store an enormous quantity of data, it can be hard to extrapolate specific data that you might need. Even if you find a particular data, there is a chance you will encounter issues along the way, such as redundancy.
On top of that, if you want to do things manually, you will have to consider the complexity of your current infrastructure. The more complex the IT structure, the harder it becomes to extrapolate data.
This is what makes data pipelines so important. They can help you consolidate all that data sending it to the same destination. That way, it is easier and faster to analyze and utilize them for managerial decision making. They also increase the quality of data by making it more consistent. This is very important as you can always trust data pipelines to provide the most relevant, quality data.
6 Amazing benefits of customer data pipelines
Data pipelines can be utilized for just about anything. However, most companies are interested in customer data pipelines. As mentioned, these platforms allow us to analyze our customers, figure out their consumer tendencies and create/deploy products and services according to their needs and desires.
Here are 6 main benefits that your business gets from customer data pipelines:
1. Ability to use the same patterns
Data pipelines are very important for streamlining data. Once you create the first pipeline, you can repurpose it and reuse it for future data.
2. Adding new sources is much faster
Over time, you will need to add new data sources. By utilizing a data pipeline tool, it is easier to add new sources as they become available. Overall, the software will make integration much cheaper and faster.
3. The quality of data will be much higher
Given that the processes are streamlined and can easily be replicated, you can rest assured that the data quality will be much higher. Not only that, but the data will also be much more relevant. The tools also make it easier to detect potential breaks in pipelines.
4. The tools also increase the overall data security
When creating the first pipeline, the system will add security measures meant to protect the data. The same security features will be added to the future pipelines.
5. Ability to scale pipelines
Not only are pipelines meant to keep the integrity of data, and replicate the whole extraction process, but you can also scale them. As the pipeline increases, your data will not suffer in any way or lose its quality.
6. Increased flexibility
Lastly, it is worth noting that pipelines create a flexible framework that can easily be changed according to your needs and desires.