Today, data-driven decision making is at the center of all things. The emergence of data science and machine learning has further reinforced the importance of data as the most critical commodity in today’s world. From FAAMG (the biggest five tech companies: Facebook, Amazon, Apple, Microsoft, and Google) to governments and non-profits, everyone is busy leveraging the power of data to achieve final goals. Unfortunately, this growing demand for data has exposed the inefficiency of the current systems to support the ever-growing data needs. This inefficiency is what led to the evolution of what we today know as Logical Data Lakes.
What Is a Logical Data Lake?
In simple words, a data lake is a data repository that is capable of storing any data in its original format. As opposed to traditional data sources that use the ETL (Extract, Transform, and Load) strategy, data lakes work on the ELT (Extract, Load, and Transform) strategy. This means data does not have to be first transformed and then loaded, which essentially translates into reduced time and efforts. Logical data lakes have captured the attention of millions as they do away with the need to integrate data from different data repositories. Thus, with this open access to data, companies can now begin to draw correlations between separate data entities and use this exercise to their advantage.
Primary Use Case Scenarios of Data Lakes
Logical data lakes are a relatively new concept, and thus, readers can benefit from some knowledge of how logical data lakes can be used in real-life scenarios.
To conduct Experimental Analysis of Data:
- Logical data lakes can play an essential role in the experimental analysis of data to establish its value. Since data lakes work on the ELT strategy, they grant deftness and speed to processes during such experiments.
To store and analyze IoT Data:
- Logical data lakes can efficiently store the Internet of Things type of data. Data lakes are capable of storing both relational as well as non-relational data. Under logical data lakes, it is not mandatory to define the structure or schema of the data stored. Moreover, logical data lakes can run analytics on IoT data and come up with ways to enhance quality and reduce operational cost.
To improve Customer Interaction:
- Logical data lakes can methodically combine CRM data with social media analytics to give businesses an understanding of customer behavior as well as customer churn and its various causes.
To create a Data Warehouse:
- Logical data lakes contain raw data. Data warehouses, on the other hand, store structured and filtered data. Creating a data lake is the first step in the process of data warehouse creation. A data lake may also be used to augment a data warehouse.
To support reporting and analytical function:
- Data lakes can also be used to support the reporting and analytical function in organizations. By storing maximum data in a single repository, logical data lakes make it easier to analyze all data to come up with relevant and valuable findings.
A logical data lake is a comparatively new area of study. However, it can be said with certainty that logical data lakes will revolutionize the traditional data theories.