What You Need to Know About Data Modeling Data modeling is the organization of databases into tools that help you use information as effectively and flawlessly as possible. Here's what you need to know to get started.

Q: How can data modeling boost my business?

A: Data modeling refers to the organization of various databases (customer lists, inventory, sales history, etc.) into tools that help you use that information as effectively and flawlessly as possible. These customized programs, such as CRM software and inventory-management services, are designed to make database information nearly idiot-proof to enter, then easy to slice and dice into a myriad of reports or to be used to find specific bits of information. We asked Chris Basham, co-founder and COO of TrackVia, a Denver-based company that helps nontechnical users create online business applications, to give us more details on what makes data modeling good for business.

What's the biggest benefit?
No. 1 is that it codifies data entry across the company, which keeps everyone on the same page and reduces mistakes such as multiple people changing entries on a spreadsheet at the same time or working on an older, outdated version of a spreadsheet. As grim as it sounds, if you avoid data modeling, you're destined to end up with inaccurate information.