The Modern Data Stack Explained: All You Need to Know


Data is the lifeblood of any company. It helps them keep track of customer behavior, measure their performance, and optimize their operations. But a modern data stack can be super helpful for those companies who need more time or resources to process and organize their data.

Data scroll

photo credit: Brett Sayles / Pexels

Think of it as the ultimate data assistant: it takes care of your hard work and leaves you with organized and actionable data that you can use to make smart decisions.

In this article, we will show you what a modern data stack is, how it can benefit your business, and how you can use it to get the most out of your data.

What is a Modern Data Stack (MDS)?

A modern data stack (MDS) is a component of technologies combined into a single design to organize, store, and process data. The MDS is an excellent way to take your data from edible to non-edible forms (raw data to useful info).

Before the MDS, companies had to use traditional data stacks, which involved a complex end-to-end approach and a lot of manual work from skilled analysts. But now, with MDS, companies can access more extensive data collections more cost-effectively, thanks to cloud server technology.

Modern Data Stack vs. Traditional Data Stack

Why should you switch from the traditional data stack to the modern one?

Traditional data stack (TDS) is hard to implement and requires highly skilled individuals, whereas a modern data stack (MDS) is easy to implement. Traditional data stacks are created and stored on-site, while MDS uses cloud server technology. The data from traditional data stacks can be manipulated by core technical teams, while MDS data is not susceptible to manipulation.

With the modern data stack, there’s no need to worry about complicated implementations or highly skilled individuals.The modern data stack is SaaS-operated, giving you real-time results, backups, and mobile and PC-friendly versions of your data.

Modern Data Stack Component

Do you want to know what makes up the great modern data stack? There are many different technologies involved, each with its own special role. Let’s take a look at some of the key components you should be aware of:

Data Source

Let’s get started with your MDS by digging into your data source! Your data source is a treasure trove of information from payment portals to production databases and from third-party SaaS tools to operational insights. Even medium-sized businesses have multiple sources, ranging from 50-100.

Data Storage

The data warehouse is the core of any data stack, and it can do so much more than just store data. It can even structure and do minor analytics to streamline your processes.

Data storage in a filing cabinet

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Data Transformation

Data transformation is the process that turns raw numbers in the data warehouse into user-friendly metrics! This is especially great for aligning teams on standard metrics. Employees can access stats and stay updated on exact figures.

Data Analytics

Transforming data into actionable forms makes it easier than ever to comprehend.

Whether it be in the form of graphs, charts, tables, or even illustrations and notes, modern data analytics platforms provide an easy-to-understand breakdown of the facts. This is an excellent feature for those of us who don’t quite speak ‘SQL.’

Data Activation

Data activation is the final stage of optimizing your data by moving it from the data warehouse to third-party business tools. This process makes the edible data useful for your employees’ operations. It is usually referred to as Reverse ETL or Reverse ELT.

What are the main benefits of a modern data stack?

MDS solves several issues for all companies that use data at any level. Here are some of the key benefits.

As Easy as Plug-and-Play

Ready to get started with MDS? It’s a breeze to install and use. Plus, it comes with awesome automation tools and plug-ins like data management and orchestration, and you can access all this data from anywhere.

Improved Speed

MDS is like a magic wand for data processing. Its cloud-based solution can speed up data processing by a mile! Plus, its automation tools make it a super-efficient way to slice through time and processes quickly.

Modular and Cost-Effective

MDS helps you save BIG for large organizations investing in hardware and IT staff. MDS solutions come as “mix and match” components, allowing you to pick and choose what works best for you and build the perfect customized solution.

Is building a modern data stack difficult?

Setting up a modern data stack is a breeze — it’s perfect for companies taking their first steps into building modern data stacks. With a few simple steps, you’ll be up and running and able to take advantage of all the benefits that MDS has to offer.

The transition may require a bit more time and expertise for those already familiar with traditional data stacks. But with the proper guidance, you’ll soon be enjoying the modern data stack experience!

Key Takeaways

Tired of spending endless time and energy collecting and processing data? Get ahead of the game with a modern data stack. Not only is it faster, easier, and more efficient, but it’s also more affordable, reliable, and accessible from anywhere.

  • Adopt MDS to increase how and where you apply and optimize data.
  • Do proper research when choosing customization tools for each MDS process.
  • Implement a long-term approach and stick to platforms that ease scalability.

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