The modern data stack — everything you need to know

You likely know what data is: It’s the information you collect and analyze to gauge customer behavioral patterns and company performance. A modern data stack, however, is something more comprehensive and designed to make data gathering and analysis doable for those in non-IT industries. Learn all about the modern data stack, its components, and what makes it advantageous in the digital era.

What is a data stack?

Modern data stacks are a relatively new concept, coming to prominence circa the 2010s. However, data stacks—AKA legacy data stacks—have been around for as long as computers have been. Raw data alone is not analyzable. It has to go through multiple channels of transformation to make the information meaningful and discernable to the human eye.

Here’s an analogy: Think of wheat, a main food staple that in its raw form isn’t edible. However, after undergoing a series of transformations at a processing plant, it becomes a basic consumable like bread or cereal. Raw data goes through a similar process, albeit in its own digital equivalent.

What makes up a data stack?

Some people think a data stack is simply a fancier name for a data warehouse. Data warehouses are one component of a data stack, but there are other parts as well. Other components include:

• The loading process, where data is sorted into varying data sets and points
• The transformation process, where raw data becomes usable metrics
• The final analysis process, where the data is organized into a summary or report discernible to human readers

What is the modern data stack?

How does a modern data stack differ from the aforementioned legacy data stack? A modern data stack is designed to be intuitive and easy to use for workforces across all industries, especially those in non-IT sectors. Legacy data stacks were complex and required extensive programming and coding skills. Companies needed their own IT department or had to outsource to programmers to access and extract the raw data into meaningful metrics.

Characteristics of a modern data stack

What are some of the components that make a modern data stack accessible across all industries? Consider these features that define the modern data stack.

1. Stored in the cloud

The entire modern data stack is stored in a secured cloud network. The data is accessible to all authorized individuals approved by the administrator. With this comes other features common in a cloud network, such as a pay-as-you-go infrastructure, encrypted connection, and near-unlimited storage.

2. SaaS-operated

Modern data lake systems are mainly run by SaaS companies that provide a tier-based structure. At the base is usually a free version with limited access. Paid subscriptions include greater access to a plethora of features, such as:

• PC- and mobile-friendly versions of the system
• 24/7 customer support
• Emergency backup
• Data summaries in real time

3. Never locked into a single vendor

All data, metrics, and reports you’ve accumulated can be imported to a new data stack system should you decide to try a new platform. In other words, you’re never locked into a single vendor. You’re free to move between platforms without compromising your existing data stream.

Benefits of a modern data stack

Modern data stacks solve many contemporary issues encountered by companies that manage data to any extent. Here are some key benefits of employing a modern data stack.

1. Eliminates data inconsistency

Companies may collect data from varying sources, each using a different tool or app. This results in data that is siloed or doesn’t sync well. Each data set must also be manually exported when data needs to be analyzed side by side. Manual data transfer is time-consuming and opens the possibility for human error. Modern data stacks integrate your data collection tools and automatically sync them. No manual transfer is required.

2. Easy collaboration

The data is accessible via the cloud and available to anyone across the globe with authorized access. Collaborate with remote partners or disseminate the information as third-party data for vendors, suppliers, and subsidiaries.

3. Ready to use out of the box

Modern data stack systems are ready to use once installed. No technical expertise is required. Once in the system, users have access to a wide gamut of plugins that include data management frameworks, orchestration tools, and so much more. New plugins are routinely added, giving administrators more ways to manage and customize the platform to tailor to their internal needs.

4. Define your audience segment

Filter only the data that’s pertinent to your search. Filter by audience segment to create varying data sets and determine the overall behavioral patterns. Use the information to create more defined sales funnels and customer journeys.

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