Let’s review some common scenarios where data pipelines can be applied.
1. ETL (extract, transform and load) processes
An ETL process is a type of data pipeline that extracts raw information from source systems (such as databases or APIs), transforms it according to specific requirements (for example, aggregating values or converting formats) and then loads the transformed output into another system like a warehouse or database for further analysis. ETL processes allow businesses to store their historical records in an organized manner while making them easily accessible for future insights.
2. Data warehousing and analytics
To support effective decision-making within an organization, large volumes of historical and real-time transactional information must be stored in data warehouses. These repositories serve as central hubs where analysts can quickly query vast amounts of aggregated information without impacting the performance of operational systems. Data pipelines are responsible for ingesting, cleaning and transforming data from various sources into these warehouses while maintaining the required data quality.
3. Data science and machine learning
Data scientists heavily depend on high-quality datasets to train their machine learning models. These datasets often require extensive preprocessing, including feature extraction, normalization, encoding categorical variables and other tasks. Data pipelines play a vital role in automating these tasks, allowing machine learning practitioners to focus on model development rather than processing raw information.
4. E-commerce recommendation engine
Many e-commerce companies use recommendation engines to suggest products or services that customers might find appealing based on their browsing history, purchase history, and other factors. To achieve this, they require a robust data pipeline capable of ingesting user activity logs, product catalog information, customer profiles and more. The pipeline processes this raw data and ingests it to machine learning systems, such as collaborative filtering or content-based filtering, to generate personalized recommendations for each user.
5. Social media sentiment analysis
A marketing agency might use sentiment analysis techniques on social media platforms like X or Facebook to measure public opinion regarding specific brands or products. An efficient data pipeline is required for collecting tweets or posts mentioning the target keywords (for instance, brand names), preprocessing the text (removing stop words, stemming), performing sentiment classification using natural language processing models like LSTM or BERT, and then aggregating the results into actionable insights for decision-makers.
6. Fraud detection in financial transactions
Banks and financial institutions often rely on advanced analytics systems powered by complex data pipelines to detect fraudulent activities within transactional datasets. These pipelines typically involve ingesting real-time transaction records alongside historical fraud patterns, cleansing noisy or incomplete entries, extracting relevant features such as transaction amount, location, or time, training supervised machine learning models like decision trees, support vector machines, or neural networks to identify potential frauds and triggering alerts for suspicious transactions.
7. IoT data processing
IoT devices generate vast amounts of data that must be rapidly processed. For example, a smart city project might gather data from sensors monitoring traffic patterns, air quality levels, and energy consumption rates across the city. A scalable and efficient data pipeline is essential for ingesting this high-velocity streaming data, preprocessing it by filtering out irrelevant information or aggregating sensor readings over time intervals, applying analytics algorithms such as anomaly detection or predictive modeling on the preprocessed dataset and ultimately visualizing the data to provide insights to city officials.
Related content: Read our guide to data pipeline observability
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