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Back to Learn
KnowledgeLayer 1Transformation

Aggregation

You have 47,000 sales transactions from last month. Your dashboard needs to show 'total revenue by region.' You could load all 47,000 records into memory and loop through them...

Or you've been asked how many support tickets were opened each day for the past year. 365 individual database queries? A single massive query that times out? Neither feels right.

The data is all there. But turning 'every transaction' into 'what actually happened' requires a different approach.

Aggregation is the math that turns individual events into understanding - sums, counts, averages, and groupings that make data meaningful.

7 min read
intermediate
Relevant If You're
Building dashboards or reporting systems
Creating summary views from transaction data
Optimizing queries that currently feel slow

PERFORMANCE MULTIPLIER - Good aggregation can replace hours of computation with milliseconds of database work.

Where This Sits

Category 1.2: Transformation

1
Layer 1

Data Infrastructure

Data MappingNormalizationValidation/VerificationFilteringEnrichmentAggregation
Explore all of Layer 1
What It Is

The math layer between raw events and business answers

Aggregation takes many records and produces fewer, more meaningful ones. A thousand orders become 'total sales this quarter.' Ten thousand user sessions become 'average time on site.' The individual records are valuable, but the summary tells the story.

Every aggregation answers a question: How many? How much? What's the average? What's the trend? The question determines the function - COUNT, SUM, AVG, MIN, MAX, and their combinations. Group by time, by category, by user, by region. The output is always smaller than the input, always more actionable.

You're not losing data when you aggregate - you're extracting signal from noise. The raw events are still there when you need them. The aggregations let you understand what the events mean.

The Lego Block Principle

Aggregation applies a universal pattern: reduce many things to one number (or a few numbers grouped by category). The same pattern works everywhere data needs summarizing.

The core pattern:

Take a set of records, apply a function (sum, count, average, min, max), optionally group by dimensions (time, category, region), output summary records. This pattern scales from spreadsheet formulas to petabyte data warehouses.

Where else this applies:

Financial reporting - Revenue by quarter, expenses by department, margins by product line.
User analytics - Daily active users, session duration averages, feature adoption rates.
Operations metrics - Orders per hour, error rates by service, response time percentiles.
Inventory management - Stock levels by warehouse, turnover rates by category.
🎮 Interactive: Watch Aggregation Compress Data

Toggle aggregation types and watch data transform

Start with 10 raw orders. Click each aggregation type to see how many rows you get back and what questions each approach can answer.

SQL Query

SELECT * FROM orders

Result

10rows returned

Input: 10 rows

Output Data

ORD-001· Northeast, 2024-12-01
$245.00
ORD-002· West, 2024-12-01
$189.50
ORD-003· Northeast, 2024-12-01
$312.00
ORD-004· Southeast, 2024-12-02
$156.75
ORD-005· West, 2024-12-02
$428.00
ORD-006· Midwest, 2024-12-02
$267.25
ORD-007· Northeast, 2024-12-03
$195.00
ORD-008· Southeast, 2024-12-03
$334.50
ORD-009· West, 2024-12-03
$512.00
ORD-010· Midwest, 2024-12-03
$178.25
What you just discovered: All 10 orders, no aggregation. Fine for detail views, but useless for dashboards.
How It Works

Three levels of aggregation complexity

Simple Aggregations

One function, one result

SELECT SUM(amount) FROM orders. SELECT COUNT(*) FROM users WHERE active = true. You're asking one question about the whole dataset. Fast, simple, but limited - you get a single number back.

Dead simple, very fast
One answer at a time, no breakdown

Grouped Aggregations

Same function, broken down by category

SELECT region, SUM(amount) FROM orders GROUP BY region. Now you're getting multiple answers - one per group. This is where aggregation becomes powerful: same computation, applied to meaningful segments.

Actionable breakdowns, comparative insights
Cardinality matters - too many groups = slow

Windowed Aggregations

Aggregations with context from surrounding rows

Running totals, moving averages, rank within groups. These don't collapse rows - they add computed columns that look at neighboring data. Essential for time-series analysis and comparative rankings.

Preserves detail while adding context
More complex to write and understand
Connection Explorer

"47,000 Orders → Regional Sales Report"

A month of e-commerce transactions needs to become a dashboard showing revenue by region, daily trends, and top-performing products. Raw orders are filtered, validated, then aggregated into summary tables that dashboards can query in milliseconds instead of minutes.

Hover over any component to see what it does and why it's neededTap any component to see what it does and why it's needed

Databases (Relational)
Filtering
Validation/Verification
Aggregation
You Are Here
Time-Series Storage
Sales Dashboard
Outcome
React Flow
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Foundation
Data Infrastructure
Outcome

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Upstream (Requires)

FilteringValidation/VerificationDatabases (Relational)

Downstream (Enables)

Time-Series StorageStructured Data StorageContext Compression
Common Mistakes

What breaks when aggregation goes wrong

Don't aggregate without filtering first

You calculate 'average order value' but include cancelled orders with $0 values. The average looks lower than expected because you're counting things that shouldn't be in the set.

Instead: Filter to relevant records BEFORE aggregating. WHERE status = 'completed' comes before SUM().

Don't confuse COUNT(*) with COUNT(column)

COUNT(*) counts all rows. COUNT(email) counts rows where email is not null. You think you're counting customers but you're counting rows - including those with missing data.

Instead: Be explicit about what you're counting. COUNT(DISTINCT customer_id) is often what you really mean.

Don't aggregate high-cardinality dimensions

GROUP BY user_id on a table with 10 million users. You just asked the database to return 10 million rows. That's not aggregation - that's a slow SELECT with extra steps.

Instead: Aggregate on meaningful categories with reasonable cardinality. Time buckets, not timestamps. Product categories, not SKUs.

Next Steps

Now that you understand aggregation

You've learned how to turn raw records into meaningful summaries. The natural next step is understanding how to store and query time-based aggregations efficiently.

Recommended NextTime-Series StorageSpecialized storage for temporal data and aggregated metricsContinue Learning