In this article, we’ll show you how to manage reference data in your organization. We’ll explain what reference data is, the benefits of managing reference data, and how to manage reference data effectively. Keep reading to learn how to manage reference data in your organization.
What is reference data?
Reference data is a type of data that is used as a foundation for other data. It is often used to describe the characteristics of specific entities, such as people, places, or things. So, what is reference data management? Reference data management (RDM) is the process of managing and governing reference data so that it can be effectively used by an organization. One key goal of RDM is to ensure that reference data is consistent across all systems and applications. This can be challenging, as different systems may use different definitions or formats for the same information. A good RDMS will include mechanisms for standardizing reference data so that it can be used consistently throughout the organization.
Another goal of RDM is to make sure that reference data is accessible to users who need it. This includes developing user interfaces and APIs that allow users to easily find and access the information they need. It also includes creating documentation that explains how the reference data should be used in order to minimize confusion and errors. Finally, good RDM practices also include regular monitoring and updating reference data as needed. This may involve tasks such as cleansing dirty or obsolete records, adding new values as they become available, or removing outdated values when they are no longer valid.
What are the different types of reference data?
There are many different types of reference data. Some of the most common types include names and addresses, product information, financial information, organizational hierarchies, and statistical data. Names and addresses are reference data that are used to identify individuals, households, and businesses. They are used to deliver goods and services, contact people for surveys or marketing purposes, and to conduct other business transactions. Names and addresses are also used for statistical purposes. Population censuses and surveys, for example, require accurate and up-to-date information about the people and households in a given area.
Product information is reference data that helps you understand and use a product. It can include the product’s name, description, ingredients, images, and other relevant information. It can also help you troubleshoot any problems you may have with the product. Financial information is reference data that is used to track and analyze a company’s financial performance. The data can be used to make informed investment decisions, assess a company’s credit risk, and predict future trends. Financial information is typically reported on a company’s balance sheet, income statement, and cash flow statement.
Organizational hierarchies are reference data that can be used to understand the relationships between different entities in an organization. They can be used to determine who reports to whom, who has authority over whom, and who is responsible for particular tasks or functions. Hierarchies can be used to create organizational charts, which can help to visualize the structure of an organization. Hierarchies are often represented as trees, with the root node at the top and the child nodes branching out from it.
Statistical data is reference data that is used to calculate or estimate certain characteristics of a population. It is used to help make informed decisions by providing a numerical representation of a set of data. This data can be used to identify trends and patterns, as well as to measure the performance of a particular strategy.
How do you set up reference data management?
Setting up reference data management can be a daunting task, but with the right tools and approach, it can be a breeze. Here are a few tips to get you started. The first step is to define your reference data requirements. What data do you need to ensure accurate and consistent reporting? What data do you need for regulatory compliance? What data do you need to support business processes? Once you’ve defined your requirements, you can start to think about the best way to collect and manage that data. One of the benefits of reference data is that it can come from multiple sources. This can help you to ensure accuracy and consistency.
When collecting reference data, it’s important to include data from both internal and external sources. Internal data can come from your own systems, while external data can come from third-party providers or other public sources. A centralized repository is a key component of a successful reference data management strategy. This is where you’ll store your reference data and make it available to all of your systems and users. The centralized repository should be easy to use and accessible to everyone who needs it. It should also be secure and reliable, so you can trust the data it contains
One of the benefits of using a centralized repository is that you can use a data validation process. The data validation process should include checks for data quality, completeness, and accuracy. It should also include checks for data duplication and data inconsistency. A data governance process is another key component of a successful reference data management strategy. The data governance process should include rules for collecting, managing and using reference data. It should also include procedures for auditing and monitoring reference data.
What industries use reference data management?
There are many industries that use reference data management. Some of these industries are banking and finance, insurance, healthcare, life sciences, consumer goods, retail, telecommunications, travel and hospitality, transportation, and more. Each of these industries has its own unique set of reference data requirements, but for now, let’s focus on banking and finance, telecommunications, and healthcare. In the banking and finance industries, reference data is a critical piece of infrastructure. It is used to support a wide variety of activities, including customer onboarding, account management, fraud prevention, and securities trading.
In the healthcare industry, reference data is extremely important. This data is used to identify and track patients, as well as to determine their eligibility for various treatments and services. It can also be used to identify the medications a patient is taking, as well as their insurance coverage. In the telecommunications industry, reference data is critical for ensuring correct and efficient operations.