SmartObjects can be associated with each other much like the Database tables. SmartObjects are infact data objects at heart – they bring data from disparate source systems together so that you can work with them seamlessly.
The associations are used to specify the connections between SmartObjects eg: Customer object has a link to an Employee object which is the Sales Rep for that customer. The Employee object will link back to an Employee object which is the line manager for that sales rep.
The key value of this is that K2 reporting engine can then pull all these linked data automatically from all over the place to satisfy your reporting needs. Your business process metrics and the data related to them are all report ready – out of the box!