June 6, 2025 5 min read Data Architecture Series: DERIVED Home

Derived Data Architecture: Metrics, Features, and Reusable Results

Derived data is created from other data: revenue metrics, customer lifetime value, inventory forecasts, model features, and operational summaries.

When I build derived data, I care less about the calculation looking clever and more about whether I can reproduce it. I recommend treating metrics, aggregates, and features as products with lineage, tests, and owners.

Raw facts turned into reusable answers

Raw facts turned into reusable answers Derived data as observed fact, shape, and business meaning. Raw facts turned into reusable answers Read left to right: the real event, the stored shape, then the decision meaning. Observed Raw events, orders,clicks, or accounthistory need repeatedcalculation Stored shape Metric, aggregate,feature, score, ormaterialized view withversioned logic Meaning A reusable answercomputed from sourcefacts Fields you actually touch risk_score daily_revenue feature_version computed_at

Derived data should make repeated decisions consistent, not hide where the answer came from.

How computed data becomes a product

How computed data becomes a product Derived data as a center asset with surrounding organizational uses. How computed data becomes a product Shared data asset Source facts,transform version,feature value, metric, Source Raw customer activity isprocessed nightly Serve dashboardsfaster Reuse ML features Standardize metrics Power productdecisions

Derived data should make repeated decisions consistent, not hide where the answer came from.

Where computed answers live

When I talk about "Where computed answers live", I am checking whether Derived Data Architecture can be traced back, trusted, and used by someone making a decision.

Warehouses, lakehouses, dbt models, feature stores, Redis, DynamoDB, Cassandra, Bigtable, Pinot, Druid, ClickHouse, vector indexes when features support similarity.

Cloud metric and feature services

ProviderTypical services
AWSGlue, Redshift, SageMaker Feature Store, DynamoDB, ElastiCache.
AzureFabric, Synapse, Azure Machine Learning feature store, Cosmos DB.
Google CloudBigQuery, Dataform, Vertex AI Feature Store, Bigtable, Memorystore.

Reusable metric pattern

My recommendation in "Reusable metric pattern" is to keep the raw source close enough that the answer can be explained later.

Feature stores at Uber and Airbnb are public examples of derived data becoming infrastructure. The lesson is that ML features and business metrics need definitions, ownership, offline history, and online serving.

Daily feature example

I use "Daily feature example" to keep Derived Data Architecture grounded in a real system, because abstract patterns are too easy to agree with and too hard to operate.

A risk platform derives failed login count, device age, recent chargeback count, and customer tenure. The same features are used for model training and low latency checkout risk scoring.

Certified metric code

When I show "Certified metric code", I want the code in Derived Data Architecture to reveal the production decision, not just the syntax.

insert into features.customer_login_risk
select customer_id,
       count_if(event_type = 'FAILED_LOGIN') as failed_logins_24h,
       max(event_time) as last_event_time,
       case when count_if(event_type = 'FAILED_LOGIN') >= 5
            then 'STEP_UP_AUTH'
            else 'ALLOW'
       end as decision,
       'login_risk_v3' as feature_version
from login_events
where event_time >= :as_of - interval '24 hours'
  and event_time < :as_of
group by customer_id;

This turns raw login events into a versioned risk feature and a concrete decision, so downstream services reuse the same logic instead of recalculating it differently.

Derived data traps

Related metric reads

Written by Arunkumar Ganesan.

What I learnt is that derived data without lineage becomes opinion dressed up as a number.

#DataArchitecture #DataEngineering #ETL #CloudArchitecture #DERIVED