Diagrams · Lesson 7

ER Diagrams Explained

How to read and create Entity Relationship Diagrams — the map of what data a system holds and how it connects.

📚 Educational content. This lesson explains established business-analysis concepts in plain language for learning purposes. It is original material, not copied from any book or course, and is not professional advice. Use it to learn the fundamentals, then apply judgement and your organisation's standards to real work.

An Entity Relationship Diagram (ERD) shows the data behind a system — what things are stored, what details are kept about each, and how they relate to one another. If a flowchart is the map of a process, an ERD is the map of the information.

The three building blocks

Cardinality — the most important idea

Cardinality describes how many of one entity relate to how many of another. It is the part of an ERD that carries the real business rules:

Cardinality encodes business rules. When an ERD says a customer can have many addresses, that is a business decision someone made. As a BA, reading cardinality lets you spot rules that were never written down anywhere else — and question them. "Can a customer really have only one phone number? What about a work and a personal number?"

Why a BA needs ERDs even without being technical

You do not need to design databases. But you do need to understand the data, because:

A small ERD in words
CUSTOMER (one) ——places——> ORDER (many). ORDER (one) ——contains——> ORDER_LINE (many). Each ORDER_LINE refers to one PRODUCT. From this, you can read the rule: an order can have many lines, but each line is for exactly one product — and to order two products, you need two lines.
Practice pointer: for any system you work on, sketch the three or four main entities and the relationships between them. Even a rough ERD surfaces questions that requirements documents miss.
Use casesGantt charts