Why is data modeling critical in a Dynamics 365 / Dataverse implementation?

Data modeling is critical because it defines how business data is structured, related, secured, and stored in Dataverse before configuration begins. A well-designed data model ensures that business processes are supported efficiently, reporting is accurate, integrations work smoothly, and performance remains optimal. Poor data modeling can lead to data duplication, security gaps, performance degradation, and costly rework later in the project. The Success by Design approach emphasizes validating the data model early through a Data Model Workshop to reduce risk.