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Data Pipeline

Data & AnalyticsIntermediateVersion 2

Simple Explanation

A data pipeline is a system that moves information from one place to another, often organizing or checking it along the way. Think about the water pipes in a house. Water starts somewhere else, travels through pipes and reaches the place where you need it. A data pipeline works in a similar way, but it moves information instead of water. It can collect information from several places, organize it and deliver it somewhere useful, such as a report.

Technical Explanation

A data pipeline is a sequence of processes that move data between systems. These processes may collect, validate, clean, transform and combine data before storing it or making it available for analysis. Data pipelines can run automatically at scheduled times or continuously as new information arrives.

Business Use Case

A retail company operates 20 stores. Every store records its sales separately, but company managers need one report showing total sales, best-selling products and stock levels. A data pipeline automatically collects information from all 20 stores, checks and combines the records, and updates the company's reporting system. Managers can review the latest available figures without asking employees to prepare separate spreadsheets. This saves time and helps the company make better stock and purchasing decisions.

Real-Life Example

Imagine Sarah uses a fitness watch to count her steps. Throughout the day, the watch records her movement. When Sarah opens the fitness app on her phone, the latest information is transferred from her watch and organized into a daily activity summary. The steps that move her activity information from the watch into the app are a simple example of a data pipeline. Sarah can see how active she has been without entering the numbers herself.

A simple data pipeline

A fitness watch collects steps, a data pipeline transfers the information, and a fitness app shows daily steps.