In Power BI, data modeling is a core function that serves as the foundation for interactive dashboards. A well-designed data model ensures that data is accurate, consistent, and easily query-able. It helps eliminate redundancy, improves performance, and allows for seamless integration of various data sources. By defining key metrics, hierarchies, and calculations, data modeling enables the creation of dynamic dashboards that present trends and insights clearly. This allows management to make informed decisions without being overwhelmed by raw data, offering a visual and intuitive understanding of key business factors.