Importance of ETL Tools in 2021

Introduction to ETL

Importance of ETL Tools in 2021
Image Source:- Databricks

ETL or Extract, Transform, and Load refers to the processes leveraged by enterprises to extract data from multiple sources, transform it into various formats, and load it to a destination of their choice.

There are 4 main types of Best ETL Tools in the marketplace, that can be leveraged based on your unique business use case:

  • Cloud-based ETL Tools: These tools can easily collect data from any Cloud Service and load it up to the data warehouse seamlessly. These tools also allow you to optimize the data according to your Data Warehouse system. Cloud-based ETL Tools can monitor your usage and allow you to choose how often you want to fetch data from sources.
  • Open Source ETL Tools: These tools are designed to be easily integrable with other systems. Open Source ETL Tools are recommended for organizations that work with restrictive infrastructure budgets. The collaborative nature of the Open-Source ETL Tools allows them to provide better flexibility and accountability to its users.
  • Batch Processing ETL Tools: Batch Processing ETL Tools help you consolidate your data at a time when there is less competition for computing power.
  • Real-Time ETL Tools: With the advent of technology, the need for real-time data is exponentially increasing. These tools provide you with instant updates on all your business activities. These tools also ensure that relevant records can be instantly transferred to their desired destinations irrespective of volume.

Understanding the Essential ETL Use Cases

Here are a few essential use cases of ETL Tools:

  • Online Retailers that serve customers through apps, websites, and other platforms can extract data from all points of sale, transform the data into a standard format, and load this data into applications that help them Minimize Churn and Predict Demand.
  • Federal Agencies that wish to pull statistics from hundreds of local databases, can easily separate the data into specific categories, and load it to a national database. This allows authorities to get an overhead view of the common challenges being faced by communities across the country.
  • Marketing and Sales teams that wish to extract data from various CRM (Client Relationship Management) solutions, transform all the data into one format, and load it to Business Intelligence applications. This can reveal useful trends in customer behaviors.
  • Hospitals can use ETL Tools to extract patient data from legacy systems, transform it into a format that the new system recognizes, and load the reformatted data into a single system. This comes in handy since healthcare professionals can now take data-backed decisions that improve health outcomes significantly.

Understanding the Importance of ETL Tools

ETL Tools are gaining more acceptance as data becomes an integral part of the workplace. Here are a few reasons why you should be leveraging ETL Tools in 2021:

Data Warehousing

Importance of ETL Tools in Data Warehousing

An organization’s Data Warehousing efforts can be supplemented with ETL Tools to enhance the productivity and efficiency of the workforce significantly. A modern ETL Tool can support Data Warehousing with the following:

  • High Return on Investment: Modern, Cloud-based ETL Tools are continually replacing expensive custom coding and manual transformations. It can do so with scalable business rules, graphical drag and drop development, and more accurate and faster processing.
  • Timely Access to Data: You can easily transform and accumulate data from various disparate sources and store it in an easily accessible location. This allows you to alleviate bottlenecks in the Data Pipeline. Apart from this, real-time ETL places relevant data in the hands of users in seconds.
  • Consistency: Modern ETL Tools house in-built intelligence that continually reflects and detects changes in the source and target objects to ensure data consistency. This is a priority since it forms the basis of both customer experience and strategy.

Business Intelligence

You can utilize data integration to develop an efficient Business Intelligence framework. It is recognized as one of the most critical components that is used to combine data from multiple sources and integrate them into a single point of contact, in an organized manner. By utilizing ETL Tools you can effectively:

  • Boost Efficiency: Data Integration and ETL allow you to easily integrate data from the applications you have taken on board. This allows you to save time while analyzing and reporting data. This is because you no longer need to log into multiple systems to integrate data.
  • Extract Better Insights: By organizing data in a systematic order and breaking the data silos helps drive better insights. ETL Tools can collect vital information from your customers, that when integrated with other applications allows you to grab valuable trends, patterns, and critical insights.
    Improve the Quality of Data: The inequalities and the conflicts are resolved in the integration process that enhances the data integrity.
  • Implement Precise Data Analytics: ETL Tools help frame a more clear and big picture by enabling an array of dashboards and reports that can increase the pace of analytics. It also helps provide you with an extra competitive edge.


Confused about which ETL Tool to pick for your business? There are many tools that offer a faster way to move data from 100+ data sources such as SaaS applications or Databases into your Data Warehouse to be visualized in a BI tool. Hevo is one such tool which is fully automated and hence does not require you to code. It helps transfer data to a destination of your choice for free.

About Amit Phaujdar

Amit Phaujdar is working as a Business Associate in the Organic Growth team. He helps us drive Content-based strategies and build compelling content that not only helps build our Learn Engine but also generates traction among the target audience.

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