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Architecture Pattern

Data Pipeline Architecture (ETL/ELT)

The structured flow that moves data from source systems into a place it can be reliably reported on.

What it is

Data is Extracted from source systems (CRM, ERP, product database), optionally Transformed into a clean, consistent shape, and Loaded into a destination (a data warehouse or reporting database) — ETL transforms before loading; ELT loads raw data first and transforms afterward, which has become more common as warehouses got cheaper to query directly.

When to use it

Whenever a dashboard or report needs to combine data from more than one source system reliably, rather than someone manually exporting and merging spreadsheets each cycle.

Real tradeoffs

  • The pipeline itself needs monitoring — a silently broken pipeline produces a dashboard that looks fine but is quietly wrong
  • ELT is more flexible (raw data is preserved, transformation logic can change later); ETL can be simpler when the destination system can't handle heavy transformation itself
  • Garbage in, garbage out still applies — a pipeline can't fix inconsistent source data, only move it faster

FAQs

Do we need a data pipeline if we only have one data source?

Usually not — a pipeline earns its complexity when multiple source systems need combining. For one source, a direct connection or simple scheduled export is often enough.

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