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What is a semantic layer in business intelligence?
A semantic layer is a shared set of business definitions, such as revenue, customer and margin, that sits between raw data and dashboards. It ensures that everyone calculating a metric uses the same logic, and lets non-technical users build reports with consistent terms.
It can be implemented in different ways:
- Modelled tables in SQL that already contain the correct logic.
- Metric definitions in a BI tool's modelling feature.
- A dedicated metrics layer tool.
For small companies, well-designed reporting tables in the warehouse often serve as the semantic layer, with documented definitions. The goal is the same: avoid each analyst or dashboard reinventing the formula, which is how contradictory numbers appear.
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