Why Data Contracts Are Your Data Product’s BFF: Avoiding Chaos and Building Trust

Anuj Agarwal
3 min readJan 17, 2024

Data products live and breathe on data. But that data can be a double-edged sword: a powerful driver of insights or a chaotic nightmare if not managed well. This is where data contracts come in, acting as the crucial agreement that ensures your data product thrives.

Think of a data contract as a detailed instruction manual for your data. It defines the:

  • Structure: How the data is organized (field names, data types, etc.).
  • Meaning: What each piece of data represents and how it should be interpreted.
  • Quality: Expectations for accuracy, completeness, and consistency.
  • Terms of Use: Allowed operations (reading, writing, etc.) and any restrictions.

Now, picture your data product without this guidebook. Here’s what you might face:

Chaos from the Inside Out:

  • Misinterpretations: Different teams interpret the data differently, leading to conflicting analyses and misleading conclusions.
  • Technical Headaches: Incompatible data formats create integration nightmares, slowing down development and causing crashes.
  • Broken Pipelines: Changes to data structures break downstream processes, causing…

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Anuj Agarwal

Director - Technology at Natwest. Product Manager and Technologist who loves to solve problems with innovative technological solutions.