Big data has changed most businesses and entire industries. It’s the future of work—and that future is gradually happening now—thanks to the wonders of data transformation.
In a simple data engineering sense, data transformation is the process of converting a piece of data from its original format to another—depending on the requirements of the destination data.
This process is one of the most prominent processes involved in different data management and integration tasks.
Inevitably, in today's digital commercial environment, Data conversions often take place in CRM platforms where a business and a client are constantly sharing important, often vital pieces of information such as dynamic files, documents, algorithmic data, and so on.
On the other hand, data transformation is related to data science and statistics as well. If you’re looking from this perspective, data transformation refers to the mathematical equation for each point of your data.
With the birth and subsequent mass-ish adoption of digital payments, cryptocurrencies, and the entire blockchain universe, it is pretty clear now that the future is one in which almost everything we do can be basically described as the creation and/or sharing of data, is it worth the time for one to take a closer look at this dynamic topic.
Honestly, it can be hard to grasp all of this in one go. The relevance of data transformation—whether from a statistical or an engineering point of view, is undeniable. More importantly, to the internet of things and the migration of businesses to the digital sphere. It plays a relevant role in keeping things seamless and efficient.
That being said, it can be easy to get lost in all of these terms and transformations. So, here is a simple guide that will course through the basics of data transformation and the integral parts that you should know about it.
Data transformation is a rigorous process.
Transforming data is included in every known method of data processing. Before converting them, data analysts shape the data into ways that are compatible with the analytics system of the business or a client.
The first process of data transformation is extraction from a data source and copying it to a chosen destination.
From here, data scientists map out and translate the data into relational databases. Unnecessary data are omitted after this process as columns and rows begin to take shape. Analysts can now summarize raw data by transforming them into business insights. For example, hourly online customer purchases data is converted into online sales per day.
After more data are converted and put into the system from different sources, they are sorted, computed, or omitted. Data sets are refined based on business needs and models. Sensitive information that could be at risk is anonymized and encrypted based on encryption laws and requirements for each region.
Data transformation simplifies large data quantities.
The internet has a massive cloud of data that is rapidly increasing in volume with every passing minute. Given that and the rise of big data and consumer analytics, it can be hard to untangle these cobwebs and arrive at the insight and statistics that’s relevant to your business.
Most of these data remain unused for business analytics and intelligence. But data transformation makes things easier for you to keep track, manage campaign insights, and convert different data formats—even those in large quantities—to get the most out of their value.
It makes data correlation and interpretation easier.
As more businesses venture into technology, some variables are not compatible with specific correlations between industries.
If you are trying to figure the relationship between variables of different classes, you can transform the data to find common ground for every value. Doing this can make your data easier to graph and correlate to each other.
Efficiency is the core of data transformation.
Data management platforms use the transformation process to standardize data. It gives you the liberty to access and organize these data sets based on their importance. Organized data helps you see the bigger picture of your business needs. It also aligns insights with your goals and visions. After this, data is stored in a source location.
Since it is more accessible and segmented, it will be more efficient and fast to view or compare consumer insights, market analysis, or client documents to other factors and variables.
Data transformation enables you to utilize the information that’s available in your hands to improve every aspect of your business. It is the tool behind the efficiency and data-driven success of different companies that recently migrated online. It’s the best utilization tool to keep your business intelligence at the top of your game.
Ensures data quality.
Big chunks of data don’t mean you can crunch them all into leads and relevant business insights. Organizations and data warehouses usually use the ETL or extract, transform, and load process—where transformation is in the middle of the metadata processing.
In this process, data transformation helps you segregate bad data from those relevant to your company. The process serves as the quality control that reduces potential risks like null values, duplicates, incompatible formats, and incorrect indexing.
Conclusion: data transformation is an important process to get accurate insights about your business.
Data transformation can be most efficient when done through ETL tools instead of hand-coding. Aside from being cost-effective, they also give out concise data visualizations—making them easier to integrate relevant insights on your business campaigns.
A big part of a successful business intelligence unit relies on data transformation. It’s the core process that translates and shapes the data to streamline the flow of information. Transformed data becomes the basis for reliable data-driven solutions and decisions that businesses need to succeed.