Confusion between Master Data and Reference Data: You are not Alone
In this blog, we will discuss about major misconception we build while dealing with data and the confusion we usually build between Master Data and Reference Data. Most will tell you that reference data is a subset of master data, and it is, sort of.
Master Data can be a Business-critical data, for example customer data and product records and sometimes analytical data such as market data feeds which we share across your organization to drive the business process to bring operational efficiency.
Reference Data is stable data to be used widely which categorizes master data and correlates it with external data standards.
What is Master Data?
Master data refers to the data shared across an organization. There are various types of master data and to mention a few of them are an enterprise around the globe uses enterprise master data, whereas a marketplace around the globe depends on market master data. One thing to remember is Reference data is also a type of master data. Master Data includes all the data of customers, products, employees, materials, suppliers, employee, financial, governance.
To increase the quality of master data, master data management is implemented across organizations and analysis outcomes and reports highly depend on the quality of master data. Usually, master data is stored in a centralized database which is used by single or multiple other systems. Now there can be copies of the same data as multiple groups use this data and this can lead to data inconsistency. Therefore, it is very important to have an agreed-upon view across the organization.
What is Reference Data?
Reference data is a set of permissible values defined by Standard Organization which does not change frequently other than occasional revisions. To understand more, assume country codes according to the ISO 3166-1 standard. Furthermore, units of measurement, corporate codes, fixed conversion rates such as temperature, length, width, and calendar structure are some of the examples of reference data.
There are two kinds of reference data: external and internal.
External reference data includes rarely changing norms like countries, currencies, languages, and units of measure.
Internal reference data is a little complicated. It defines and structures master data, mapping it to your business processes. Internal reference data exists to transform other data into business information.
Points to Remember When Dealing with Master Data and Reference Data
- Master data is the data that represents the business objects which contain the most valuable, agreed upon information shared across an organization while reference data define the set of permissible values to be used by other data fields.
- A change in master data is always managed as a part of existing business processes, whereas a change in the reference data values may require an associated change in the business process to support the change.
To conclude our discussion, I would mention master data is the data shared by multiple systems, applications, processes in an organization while reference Data is a non-volatile and slow-moving subset of master data that is used by other data fields.
Back to ‘ABCD’ of Data: Master, Golden, Reference and Metadata
In this blog, we will discuss about the classification of data and describe the various categories of data (reporting, transactional, master, golden, reference, metadata, unstructured and big data).
Back to ‘ABCD’ of Data: Master, Golden, Reference and Metadata
In this blog, we will discuss about the classification of data and describe the various categories of data (reporting, transactional, master, golden, reference, metadata, unstructured and big data).
Back to ‘ABCD’ of Data: Master, Golden, Reference and Metadata
In this blog, we will discuss about the classification of data and describe the various categories of data (reporting, transactional, master, golden, reference, metadata, unstructured and big data).
Why Every Retailer needs a PIM Strategy?
When companies are running an omnichannel business, they need to create a cohesive business that combines offline and online channels into a unified brand identity. And to manage the data, responsibilities, and multiple channels, you need a PIM strategy.
Why Every Retailer needs a PIM Strategy?
When companies are running an omnichannel business, they need to create a cohesive business that combines offline and online channels into a unified brand identity. And to manage the data, responsibilities, and multiple channels, you need a PIM strategy.
Why Every Retailer needs a PIM Strategy?
When companies are running an omnichannel business, they need to create a cohesive business that combines offline and online channels into a unified brand identity. And to manage the data, responsibilities, and multiple channels, you need a PIM strategy.