An ERD is used to visually represent various entities, its attributes and

relationships between entities. It is essential to have an ERD to have a clear

understanding on how the database actually work, in minimizing redundancy
and other problems, and to come up with an effective database design. The
ERD allows the business to understand what data and information is needed
to operate and manage the business. It is also an excellent communications
tool, which can be used to confirm business requirements and provide
direction to the architecture and design team as they move forward with
physical database design.