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What is a data model and why does it matter for reporting?
A data model is the agreed structure of your business data: which tables exist, how they connect, and how things like customer, order or revenue are defined. It matters because consistent definitions let every report calculate numbers the same way, so results match across the business.
Without a model, each report author interprets the raw data differently, which is a common cause of conflicting numbers.
A typical model separates:
- Fact tables, which record events such as sales or shipments
- Dimension tables, which describe things such as products, customers and dates
A well-designed model is also documented, so a new analyst can understand it without reverse engineering.
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