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Data Sources

Lesson 10/31 | Study Time: 18 Min

Once data requirements are defined, the next step is identifying where the data will come from. Data sources are generally categorized into internal and external sources. Each type offers unique advantages, challenges, and use cases. Understanding available sources ensures that models are comprehensive, reliable, and relevant.

Internal Data Sources

Internal sources are all data generated within the organization. This includes databases, CRM systems, operational records, logs, and financial documents. Internal data is often the most valuable because it directly reflects the company’s customers, operations, and performance.

Common internal data sources include:


Internal data is usually rich, high-value, and directly aligned with business goals. However, it may suffer from inconsistencies, missing fields, or lack of standardization across departments. Achieving cross-system integration is often the biggest challenge.

External Data Sources

External datasets complement internal data and broaden analytical capability. These sources include publicly available datasets, commercial third-party data, partner-provided data, and social or market insights.
Common external data sources include