What Is DBT? A No-Fluff Guide for Data Engineers and Analysts
Vijay Ashley Rodrigues

Vijay Ashley Rodrigues @vijayrodrigues

About: Data engineer transforming raw data into insights using Airflow, DBT, and SQL. Focused on automation, scalability, clarity in logic, and delivering business-driven data solutions.

Location:
Bangalore, India
Joined:
May 16, 2025

What Is DBT? A No-Fluff Guide for Data Engineers and Analysts

Publish Date: Jun 1
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If you’ve been around modern data tools, you’ve probably heard the term DBT pop up more than once. It's one of those tools that gets mentioned in conversations about clean data pipelines, SQL transformations, and analytics engineering — but what is it, really?

In this post, I’ll break down what DBT (short for Data Build Tool) actually is, how it works, and why it’s become such a big deal in the modern data stack — without the buzzword overload.


What Exactly Is DBT?

At its core, DBT is a transformation tool — not an extraction or loading tool. It doesn’t move data in or out of your warehouse (that’s what tools like Fivetran, Airbyte, or custom ETL scripts do). Instead, DBT focuses on the “T” in ELT: turning raw data inside your warehouse into clean, analytics-ready tables.

You write your transformations as SQL models (literally .sql files), organize them in a folder structure, and DBT runs them in a defined sequence using its built-in dependency graph.

It handles:

  • Execution order (via ref() references)
  • Data testing
  • Documentation
  • Environment configuration
  • And even integrates with Git for version control

Why Teams Love DBT
Traditional SQL development often turns into spaghetti — duplicate code, inconsistent logic, and barely any testing. DBT introduces structure to that chaos.

Here's what makes it awesome:

  • Modular, reusable SQL files
  • Git integration for version control
  • Automated data quality tests (nulls, uniqueness, relationships)
  • Interactive documentation with lineage graphs
  • Dynamic SQL using Jinja templates

How DBT Works (In Plain English)

A DBT project is basically a collection of models and configurations:

  • Models are .sql files containing SELECT statements
  • You reference other models using ref('model_name')
  • DBT builds a DAG (dependency graph) to figure out what runs when
  • You can test models, define sources, and set materializations (view/table/etc.)

Example:

-- models/stg_customers.sql

SELECT
  id AS customer_id,
  LOWER(email) AS normalized_email,
  created_at::DATE AS signup_date
FROM {{ source('raw', 'customers') }}
WHERE email IS NOT NULL
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This model takes raw customer data and cleans it up. You can later reference it in other models like this:

SELECT * FROM {{ ref('stg_customers') }}
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You can even add tests with a simple YAML config like:

columns:
  - name: customer_id
    tests:
      - not_null
      - unique
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Key Concepts in DBT

Component What It Does
Models SQL-based transformations
Sources Raw input tables defined in YAML
Tests Validate data quality rules
Macros Reusable Jinja + SQL logic
Docs Auto-generated documentation and lineage

Who Should Use DBT?

If you:

  • Know SQL
  • Work with data in warehouses like Snowflake, Databricks, BigQuery, or Redshift
  • Want to write cleaner, testable transformation code

Then DBT is made for you — whether you’re a solo analyst or part of a larger data team.

You don’t need to learn a new language. DBT lets you keep working in SQL, but brings in the best parts of software engineering: version control, CI/CD, modularity, and documentation.


Getting Started

You’ve got two ways to use DBT:

  1. DBT CLI — Open-source and terminal-based
  2. DBT Cloud — Hosted version with UI, scheduler, logging, etc.

Start with the Jaffle Shop demo project (yes, that’s what it’s called) to see DBT in action.

Your getting-started flow:

  • Install DBT CLI or sign up for DBT Cloud
  • Connect it to your warehouse
  • Initialize a project
  • Create some models, tests, and sources
  • Run dbt run, then dbt docs generate to see lineage graphs

🙌 Final Thoughts

DBT is changing how data teams think about transformations. It brings the discipline of software engineering to SQL workflows — making your data pipelines more reliable, documented, and collaborative.

You don’t need to be an expert to get started. If you know SQL and want a smarter way to build and manage data models, DBT is absolutely worth exploring.

💬 Tried DBT already? Thinking of learning it? Drop your experience or questions in the comments — I’d love to connect!

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