The entity relationship diagram is basically used in business domains for describing the aspects related to data and information. It also specifies the process requirements of a business domain. It is then used in database management systems for example in relational database management system. All the entity relationship models consist of small entities which are the  used to interpret the relationship which can exist between various databases and the entities themselves. Basically, it is used in business processes in order to define them completely. The entities are designed in such a way that they exhibit the various dependencies and all the requirements which are essential in a business domain.

Attributes are linked with the entities which basically their properties. It can be said that the entity relationship diagrams are indispensable when we talk about all the developments and plans which are required to be formed for the business processes. It gives an idea or outline of what is to be followed and what is required. So, understanding of how an entity relationship model is developed is necessary prior to the formation of a business plan. This is a very basic aspect in business studies which the students need to study and develops in their courses.

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