Tips and Best Practices to Build a Modern Data Pipeline

In this article, I’m going to share some tips that may help in designing a data pipeline architecture. Note that this is based on my experience across several organizations. Depending on your organization, you may need to consider additional factors.
1. Define Your Objective
The first step in designing a data pipeline is to identify the primary goal it will serve for your organization. Key questions to address include:
- What are the main goals for this data pipeline?
- How will you measure its success and effectiveness?
- Which specific use cases will the data pipeline cater to, such as reporting, analytics, or machine learning?
2. Source Selection
The next phase involves selecting and determining the data sources that will feed into the data pipeline. It’s essential to consider aspects like:
- Identifying potential data sources available for integration.
- Specifying the format of incoming data, whether as flat files, JSON, XML, or other formats.
- Establishing the methods for connecting to these data sources.
3. Ingestion Strategy
With a clear understanding of the pipeline’s objectives and data sources, it’s time to focus on how data will be ingested into the pipeline. This step involves deliberating on aspects like:
- Choosing the communication layer for data collection (e.g., HTTP, MQTT, gRPC).
- Exploring the potential use of third-party integration tools for data ingestion.
- Deciding whether to use intermediate data stores for temporary data storage during the data flow.
- Determining whether data will be collected in predefined batches or in real-time.
4. Data Processing Strategy
Once data is ingested, it must undergo processing and transformation to become valuable to downstream systems. At this juncture, crucial questions emerge:
- Which data processing strategies will be applied, such as ETL, ELT, data cleaning, and formatting?
- Is data enrichment with additional attributes part of the plan?
- Will the pipeline handle all the data or just a subset?
- How will redundant data be identified and eliminated?
5. Define Data Storage
After data processing, the next step involves determining the final storage destination for the data. Key considerations encompass:
- The selection of data storage solutions, such as data warehouses or data lakes.
- The choice between cloud-based or on-premises data storage.
- Aligning data storage solutions with primary use cases.
- Determining the format in which the final data will be stored.
6. Workflow Planning
Designing the sequence of processes in the data pipeline is crucial. Questions arising in this phase include:
- Identifying job dependencies: Which downstream jobs rely on the successful completion of upstream tasks ?
- Parallel job execution: Are there opportunities for parallel job processing ?
- Handling job failures: How will the pipeline manage and recover from failed jobs ?
7. Data Monitoring and Governance
This step focuses on establishing a robust data monitoring and governance framework. It’s vital to ensure that the data pipeline functions smoothly, is secure, reliable, and meets performance expectations. Points of interest include:
- What aspects require monitoring, including data security and performance metrics ?
- How will data security be ensured, and how will data attacks be mitigated ?
- Is the data intake meeting predefined thresholds, and who is responsible for monitoring ?
8. Consumption Layer Planning
The final phase entails planning how various services and applications will consume the processed data from the pipeline. Pertinent considerations encompass:
- Optimizing data utilization and harnessing its potential.
- Ensuring that all necessary data is available for the intended use cases.
- Establishing connections between consumption tools and data stores.
Data Pipeline using an Open-Source Stack
Here’s an example of an open-source set of tools.

Best Practices
Below, are some best practices that will assist in designing a robust data pipeline.
- Emphasize simplicity and modularity in your design for a clear understanding of the steps and transformations.
- Encourage the creation of a clear and modular pipeline design to simplify development and deployment for a team of developers.
- Implement a comprehensive testing strategy that includes unit testing, integration testing, and end-to-end testing.
- Simplify debugging and troubleshooting.
Feel free to go through my other story on How to design a Modern Data Pipeline.