1. Master Data versus Reference Data
Malcolm Chisholm Ph.D.
Reference Data Portal
© Askget.com Inc., All rights reserved

2. What are Master and Reference Data?
© Askget.com Inc., All rights reserved

3. Data Exists As Different Layers
Increasing:
Semantic Content
Per Value Data Quality Importance
Most Relevant
To Design
Metadata
Reference Data
Most Relevant
To Outside World
Transaction Structure Data
Enterprise Structure Data
Most Relevant
To Business
Transaction Activity Data
Most Relevant
To Technology
Transaction Audit Data
Increasing:
Volume of Data
Population Later in Time
Shorter Life Span
© Askget.com Inc., All rights reserved

4. Layers of Data
Metadata – Usually describes the structure of databases. Found in a database’s system catalog. Sometimes included in database tables.
Reference Data – Codes and descriptions. Tables containing this data usually have just a few rows and columns.
Transaction Structure Data – The parties to the transactions of the enterprise. E.g. Customer, Product.
Enterprise Structure Data – Data that describes the structure of the enterprise. E.g. organizational or financial structure.
Transaction Activity Data – Traditional focus of IT – in many enterprises the only focus.
Transaction Audit Data – Data that tracks the life cycle of individual transactions. Includes server logs.
© Askget.com Inc., All rights reserved

5. What Is Reference Data? Definition of Reference Data:
Reference Data is any kind of data that is used solely to categorize other data found in a database, or solely for relating data in a database to information beyond the boundaries of the enterprise.
Also known as: Lookup Data, Domain Values.
Some people include Master Data and Enterprise Structure Data as reference data.
Some people regard any data imported into a database, or not updated by a system as reference data.
© Askget.com Inc., All rights reserved

6. What Is Transaction Structure Data?
Definition of Transaction Structure Data:
Data that represents the direct participants in a transaction, and which must be present before a transaction fires.
Definition of Transaction Activity Data:
Data that represents the operations an enterprise carries out
Some people do not think of data that represents all participants in a transaction as Master Data. They only recognize some, e.g. Product, Customer.
© Askget.com Inc., All rights reserved

7. What Is Enterprise Structure Data?
Definition of Enterprise Structure Data:
Data that permits business activity to be reported or analyzed by business responsibility.
Some people call it “hierarchies” or “dimensions”.
© Askget.com Inc., All rights reserved

8. Master Data Metadata Reference Data Transaction Structure Data
Enterprise Structure Data
Transaction Activity Data
Transaction Audit Data
Master Data = Reference Data (Code Tables, Taxonomies) Transaction Structure Data (Product, Customer) Enterprise Structure Data (CoA, Org. Structure)
© AskGet.com Inc., All rights reserved

9. Common Definition of Master Data does not Include Reference Data
Metadata
Reference Data
Transaction Structure Data
Enterprise Structure Data
Transaction Activity Data
Transaction Audit Data
Master Data = Transaction Structure Data (Product, Customer) Enterprise Structure Data (CoA, Org. Structure)
Many people do not like code tables, and see Master Data as Product, Customer, Chart of Accounts, Organization Structure, etc. We will use this definition for this presentation, although we do not agree with it.
© AskGet.com Inc., All rights reserved

10. Master and Reference Data
Transaction Structure Data
Transaction Activity Data
© Askget.com Inc., All rights reserved

11. Characteristics and Management Needs
© Askget.com Inc., All rights reserved

12. Structure: Differences
Master Data
Reference Data
Many Rows per Table
Few Rows per Table
Many Columns per Table
Few Columns per Table
Few Tables per Database
Many Tables per Database
Changes More Quickly
Changes More Slowly
Highly Shared within Enterprise
Highly Shared within Enterprise and between Enterprises
© Askget.com Inc., All rights reserved

13. Semantics: Differences
Master Data
Reference Data
Entities Poorly Defined
Entities Well Defined
No Meaning At Row Level
Individual Rows Have Meaning
What is “China” in
Country Code Table?
What is a Customer?
Includes Macao
Sales: Includes
Prospects
Accts Rcvbl: Only
People who have
Paid
Excludes Hong Kong
© Askget.com Inc., All rights reserved

14. Semantics: Management
Master Data
Reference Data
Entities Poorly Defined
Entities Well Defined
No Meaning At Row Level
Individual Rows Have Meaning
Definitions Exist within
Contexts
Need to Attach
Definitions to Rows
Make Row-Level
Definitions Available
To Users / Developers
“Commonly Accepted
Definition” Impossible
Need to be aware of
Context / Definition in
Target System when
Exchanging Data
Definitions
Drive Business Rules
Row-level
Stewardship
© Askget.com Inc., All rights reserved

15. Primary Keys: Differences
Master Data
Reference Data
Intelligent Keys
Codes / Acronyms
Unique Identification
Use of Standards
Perhaps the
Greatest Problem
In Master Data
Management
Standards, e.g. Country
(ISO-3166),
Currency (ISO-4217)
Assist human users
Useful in Displaying
Data, e.g. “USA”
© Askget.com Inc., All rights reserved

16. Primary Keys: Management
Master Data
Reference Data
Intelligent Keys
Codes / Acronyms
Unique Identification
Use of Standards
Identifying and Resolving
Synonyms, and Impact on
Transaction Activity Data
Finding and Subscribing to
Standards
Permitting Different Identification
Schemes (e.g. CUSIP,
SEDOL, ISIN for Securities)
Deciding how to create
Codes and Acronyms
Ensuring
Correct Updates
Ensuring “Codes” Do Not
Violate Semantics,
e.g. “EUR” in
Country Code Table
© Askget.com Inc., All rights reserved

17. Business Rules: Differences
Master Data
Reference Data
Business Rules Act on Rows
Rows Drive Business Rules
Business Rules
Reference Data
Values
Business Rules
Act on Master Data
E.g. “If Customer
Type = ‘GOLD’ Then…”
© Askget.com Inc., All rights reserved

18. Business Rules: Management
Master Data
Reference Data
Business Rules Act on Rows
Rows Drive Business Rules
Need to Understand
Effects on Business
Rules
Need to Audit
How Business Rules
Change Data
Versioning
Important
Stewardship so
Change Cycle
Does not Disrupt Systems
© Askget.com Inc., All rights reserved

19. Conclusion Master Data and Reference Data are different kinds of data.
They have different properties.
They behave differently.
They have different management needs.
Attempts to manage them using the same techniques will not be successful.
© Askget.com Inc., All rights reserved

20. Master Data vs. Reference Data
Malcolm Chisholm
*** Now featuring Reference Data Cost Estimator ***
Tel:
Fax:
© Askget.com Inc., All rights reserved