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What is an ETL Pipeline? Types, Benefits, Tools & Use Case

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20th Sep, 2023
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    What is an ETL Pipeline? Types, Benefits, Tools & Use Case

    In today's data-driven world, businesses need to extract, transform, and load data from multiple data sources because of the large amount of data which businesses generate. An ETL pipeline is one of the most common solutions for the efficient processing of large data. In this article, we will discuss what is ETL, the architecture of an ETL pipeline, types of ETL pipelines, how to create an ETL pipeline, and benefits of the ETL pipeline process. If you want to learn more about ETL processes check out this Data Engineer course.

    What is ETL?  

    ETL stands for Extract, Transform, and Load. It is the process of extracting data from various sources, transforming it into a format suitable for analysis, and loading it into a target database or data warehouse. ETL is used to integrate data from different sources and formats into a single target for analysis.

    What is an ETL Pipeline?  

    An ETL pipeline is a collection of processes that take data from various sources, transform it into the required format, and load it into a target database or data warehouse. Building an ETL pipeline is a set of steps taken in a specific order to move data from one location to another. ETL pipelines are designed to efficiently process large amounts of data.

    The Architecture of an ETL Pipeline  

    An ETL pipeline architecture or ETL pipeline design usually consists of three main components: the source system, the transformation engine, and the target system. Let's take a closer look at each component:

    1. Source System: The source system is the data source. It can be any system that creates data, including databases, files, APIs, and cloud services. The source data must be retrieved from this system in a format that the transformation engine can use.
    2. Transformation Engine: Where the ETL pipeline processes the data. This component is responsible for cleaning, transforming and compiling data into a format that can be loaded into the target system. Transformation engines can be built using various programming languages, frameworks, and tools.
    3. Target System: The target system where the change data is loaded. It can be a database or a data warehouse that can handle large amounts of data. The target system should be optimized for queries and reports to easily analyze and visualize data changes.

    In the above diagram, we can see that the source data is fetched from various systems such as Flat files, any unstructured streaming data, CRM (Customer Relationship Management) or ERP (Enterprise Resource Planning) and then transformed by the rendering engine such as ODS (Operational Data Store), stage and Warehouse after that the transformed data is uploaded to the target system for analysis and reporting.

    One of the main advantages of this architecture is that it allows companies to integrate data from different sources to analyze data. This can help businesses make better decisions based on a complete and accurate view of data.

    Types of ETL Pipeline  

    ETL (Extract, Transform, Produce) pipelines are used to transfer data from the source system to the target system by converting it into a usable and valuable format. There are several types of ETL pipelines, including:

    1.  Batch ETL Pipeline

    In a batch ETL pipeline, data is extracted from the source system, converted to the appropriate format, and loaded into the target system in batches. Batch ETL pipelines are useful for processing large amounts of data that can be processed on a daily or weekly schedule.

    2. Real-Time ETL Pipeline

    In the real-time ETL pipeline, data is obtained from the source system and real or near-change, and then immediately loaded into the target system. True ETL pipelines are useful when you need to process and analyze data quickly and are also called data ETL pipelines.

    3. Incremental ETL pipeline

    In an incremental ETL pipeline, only the source data has changed since the last ETL job was extracted, modified, and loaded from the target system. The Incremental ETL pipeline is useful when there is a large amount of data and frequent changes to the data source

    4. Hybrid ETL pipelines

    Hybrid ETL pipelines combine batch and real-time processing. In a hybrid ETL pipeline, data is processed at regular intervals as well as in real-time when critical data is available. This type of ETL pipeline is useful when you need to process data quickly, but you want to ensure that all data is processed in a timely manner.

    5. Cloud ETL Pipeline

    A cloud ETL pipeline is an ETL pipeline that runs entirely in the cloud. In a cloud ETL pipeline you extract, transform, and load data from source systems to target systems using cloud-based tools and services. Cloud ETL pipelines are useful when you need to process data stored in the cloud or want to take advantage of the scale and flexibility of cloud-based tools and services. If you wish to transform your career as data specialist, you can learn Data Science online.

    Steps to Build an ETL Pipeline  

    Building an ETL pipeline involves several steps:

    Step 1: Define scope and requirements: Define data to be extracted, modified, and loaded, as well as data endpoints. Identify source systems and potential problems such as data quality, data volume, or compatibility issues.

    Step 2: Extract data: extracts the necessary data from the source system. This API may include using SQL queries or other data mining tools.

    Step 3: Data manipulation: The extracted data may not be in a suitable format for analysis or storage. Transform data by cleaning, filtering, merging, and consolidating it to prepare it for the end goal.

    Step 4: Data load: Loading modified data to an endpoint file storage system. This may include creating tables or schemas, validating mapping fields and data, and handling errors.

    Step 5: Test and monitor pipelines: Once the ETL pipeline has been installed, it is important to thoroughly test it to ensure that it works as expected. Establish monitoring and alerting process to detect and resolve errors or problems that may occur during operation.

    Step 6: Iterate and Improve: The ETL pipeline must be a project that is regularly reviewed and updated to continue meeting business needs. This may include optimizing pipeline performance, adding new data sources, or changing the target system.

    Best Practices to Build an ETL Pipeline  

    Building an ETL pipeline can be complex, but following best practices can help ensure that the pipeline is reliable, scalable, and maintainable. Best practices to consider when building an ETL pipeline:

    • Start with a clear plan: Before you start building your pipeline, make sure you have a clear plan about what data needs to be extracted, modified, and loaded, and where the data will ultimately go.
    • Use modular design: Divide the pipeline into small individual parts that can be independently tested and adjusted. This will make it easier to identify and resolve any issues that arise.
    • Data validation: Data validation as it goes through the pipeline to ensure it meets the necessary quality standards and is appropriate for the final goal. This may include checking for missing data, incorrect values, and other issues.
    • Monitoring and logging: Establish monitoring and logging processes to track pipeline progress and detect errors or problems. This will help you quickly identify and resolve issues before they affect your business.
    • Use version control: Use version control tools to manage your debugger code and configuration files. This will make it easier to track changes, collaborate with other team members, and revert to previous versions if necessary.
    • Complete Testing: Testing the pipeline before putting it into production. This requires checking for edge cases, bugs, and performance issues.
    • Documentation of pipelines: Thoroughly document pipelines and their components, including code, configuration files, and data models. This will make it easier for new team members to maintain and update the pipeline over time.
    • Optimizing performance: Optimize pipeline performance by using efficient data structures, reducing data traffic, and parallel processing whenever possible.

    By following these best practices, you can create a reliable, scalable, and maintainable ETL pipeline that meets your business needs.

    ETL Pipeline Tools  

    There are several ETL pipeline tools, each with advantages and disadvantages. Here are some popular ETL pipeline tools:

    • Apache Spark: The Spark ETL pipeline is a distributed computing framework that supports ETL, machine learning, and media streaming. It can handle huge data and is highly scalable.
    • Apache NiFi: An open-source data flow tool that allows users to create ETL data pipelines using a graphical interface. It supports various data sources and formats.
    • Talend: A commercial ETL tool that supports batch and real-time data integration .It provides connectors for data sources and symbols, as well as a visual interface for designing ETL pipelines.
    • Informatica PowerCenter: A business ETL tool that supports batch and real-time data integration. It provides connectors for data sources and symbols, as well as a visual interface for designing ETL pipelines.
    • Microsoft SQL Server Integration Services (SSIS): A tool for creating ETL pipelines in a Microsoft SQL Server environment. It supports multiple data sources and streams and provides a visual interface for building pipelines.
    • AWS Glue: A fully managed ETL service from Amazon Web Services. It supports multiple data sources and streams and can automatically generate ETL code based on user-defined schemas.
    • Google Cloud Dataflow: A fully managed ETL service provided by Google Cloud. It supports batch and real-time data integration and can work with different data sources and symbols.

    These are just a few examples of the many ETL pipeline tools available.

    Use Cases of ETL Pipelines  

    ETL pipelines are widely used in many industries and applications. Here are some use cases for the ETL pipeline:

    • Data warehousing: ETL pipelines are often used to extract data from various sources, convert it into a common format, and open it in a data warehouse for further processing, analysis and reporting.
    • Business Intelligence: ETL pipelines can be used to extract data from the operational system, convert it into a suitable format for analysis, and open the data to BI tools for visualization and decision making.
    • Marketing Analytics: ETL pipelines can be used to extract data from various marketing channels, convert it into an analysis-friendly format, and upload it to a marketing analytics platform for campaign analysis, attribution models, and audience segmentation.
    • IoT data processing: ETL pipelines can be used to extract data from various IoT devices, convert it into an analysis-friendly format, and upload it to a data processing platform for real-time analysis and predictive maintenance.
    • Log Analysis: ETL pipelines can extract data from various log files, convert them into formats suitable for analysis, and open them to log analysis tools for performance monitoring, debugging, and security analysis.
    • Social media analytics: ETL pipelines can be used to extract data from various social media platforms, convert it into an analysis-friendly format, and open it to social media analytics tools for sentiment analysis, influencer identification and campaign tracking.

    This is just an example of an ETL pipeline, where we create a pipeline to streamline the process. It can be used for almost any application that requires data integration and analysis.

    Benefits of ETL Pipeline Processes  

    The ETL (extract, transform, load) pipeline offers several advantages for companies that need to integrate and analyze large amounts of data from multiple sources. Some of the important benefits of the ETL pipeline process are:

    • Data integration: ETL pipelines allow companies to integrate data from multiple sources into one, unified format. It gives organizations a complete and accurate view of their data that helps them make better business decisions.
    • Data quality: ETL pipelines can be used to transform and clean data to improve quality. This includes eliminating duplicate records, standardizing data formats, and correcting data errors. Better data quality can lead to more accurate analysis and better decisions
    • Scalability: ETL pipelines can handle large amounts of data and are highly scalable. This makes them ideal for companies that need to constantly process and analyze large amounts of data.
    • Automation: Automated ETL pipeline, reducing the need for manual input and processing. This not only saves time, but also reduces the risk of errors and improves data consistency.
    • Time to insight: ETL pipelines can help businesses understand data faster by automating the process of integrating, transforming, and loading data. This allows the analyst to focus on analysis and interpretation instead of spending time on data preparation.
    • Cost savings: ETL pipelines can help companies save money by reducing the need for manual data entry and processing, improving data quality, and speeding up decisions. Additionally, an ETL pipeline can help companies avoid costly data errors and inconsistencies.

    Overall, an ETL pipeline can help companies improve the accuracy, quality, and speed of data analysis to make better decisions and improve productivity.

    Data Pipeline vs ETL  

    Data and ETL pipelines are used to move data from source to target. However, there are some differences between the two. A data pipeline is a general term used to describe a set of processes used to move data from one location to another. Data pipelines can be used to transfer data in real-time or in bulk, they can be used to transfer data between similar systems, and they can be used to transfer data from one form to another.

    An ETL pipeline, on the other hand, is a specialized data pipeline used to move data from various sources, convert it into the required format, and load it into a target database or data warehouse.

    ETL pipelines are designed to efficiently process large amounts of data and are often used in data warehousing, analytics, and business intelligence.  To learn business intelligence from scratch, check out KnowledgeHut’s Data Engineer course

    Here is a table that summarizes the differences between data pipelines and ETL pipelines:

    Data PipelineETL Pipeline
    A generic term used to describe any set of processes used to move data from one place to another
    A specific type of data pipeline used to extract, transform, and load data
    Can be used to move data in real-time or batch, and between systems that are similar or different
    Typically used to process large volumes of data in batch, and move data from various sources to a target database or data warehouse
    Can be used to move data from one type of storage to another
    Focuses on transforming data into a desired format before loading it into a target database or data warehouse

    You’re All Set to Build an ETL Pipeline!  

    In conclusion, an ETL pipeline is a necessary tool for companies that need to process large amounts of data efficiently. It allows firms to integrate data from multiple sources into a single destination for analysis, reporting, and business intelligence. By following best practices and using the right tools, companies can create scalable, reliable, and efficient automated ETL pipelines that can help them to grow their business.

    Frequently Asked Questions (FAQs)

    1How to use ETL pipeline?

    ETL pipelines are mainly used to migrate data from source to destination. So that transformed data later can be used to derive business insights

    2Is SQL an ETL tool?

    SQL (Structured Query Language) is not an ETL tool, but it is highly used in the ETL process. SQL is a programming language that is used to manage and manipulate relational databases. It is mostly used to extract data from source systems, transform the data into the desired format, and then load it into a target system.

    3What programming language is ETL?

    ETL (Extract, Transform, Load) is a process, not a programming language. However, the ETL process involves the use of a programming language to perform individual steps.

    The choice of ETL programming language depends on the specific requirements and constraints of the project. Some popular programming languages used for ETL are Java, SQL, Python, and R, while ETL tools like Apache NiFi, Talend, and Informatica provide graphical interfaces and drag-and-drop functionality to help automate and streamline the ETL process.


    Profile

    Sameer Bhale

    Author

    Sameer Bhale is a Senior Data Analyst working at JP Morgan Chase & Co., He is helping firms in taking data-driven decisions to improve customer experience using the power of data. Previously, Sameer worked as an analyst for a tech software company. He graduated with Distinction from IIIT Bangalore with a post-Graduate data science degree.”

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