What is reference data – this involves virtually any type of data used for the sole purpose of taking database information and categorizing it.  In other words, reference data is all about your database and the information stored there, specifically how it stretches beyond expectations and limitations of the business.

When asking what is reference data, you will find many different definitions simply because this is such a vast area.  For example, the following are just a few of the dynamics associated with reference data:

• Codes – What is reference data?  The most relevant aspect is the different codes such as status, type, and role.  All of these factors combined are what mold the database design while also playing a critical role in the way the database is managed.  For example, codes used will take database information and allow the design to have a primary category, then broken down by subcategories.  With status codes, you would see all the specifics to employees, customers, vendors, etc.  This particular information within the database is something that never changes, meaning the administrator or users make no updates.
• External Aspects – This part of reference data associated with information that has been input into the database and then organized so it can be used with areas outside of the company.  This information would be specific information that regardless of what is going on outside the company would never change.  For instance, external information might be customer data such as currency, country, etc.

If you hear someone ask what is reference data, you will know this is tables of code and lookup information used by your company’s IT staff.  Reference data is as mentioned, broken down by primary and secondary information.  Typically, the database would have a main key code, which would then link to information.  The benefit of reference data is that while vital, it needs very little management.  Information such as this is generally simple but also important for the structure of the database.  The key here is having a professional who is capable of designing and then inputting information the right way so that big challenges are avoided down the road.

One of the challenges for database administrators is that they are usually people who need to manipulate information but with this particular type of data, it can be left alone.  Obviously, for the administrator, it becomes difficult to keep hands off.  While this might be a challenge, there is tremendous benefit to understanding and allowing reference data to work for you.

The answer to what is reference data is a diverse yet simply part of the company’s database.  For your company’s information architecture, reference database does not have anything to do with transactions for the business.  However, this particular information does provide information used for transactions.  A great example is that while reference data would play no role in securing and selling to a new customer, it would be the customer’s information such as contact information, currency, country, history, mission, etc.

You will also discover another answer to the question of what is reference data.  This information is typically values, again information that encompasses definitions.  Depending on the data, the definitions might be very simplistic or it could be more complex.  Think of reference data as being values that describe various entities for things outside the company.  An example here might be the amount of tax you add to a customer based on the state.  This value relates to the business but it is based on something outside of the business.

In answer to the question of what is reference data, there is also values that might have to do with special numbers to include federal identification or social security.  This information is important but again, while it connects to the business and your customers or employees, it is also information that will never change and data that connects to external dynamics of the business.

Information input and managed by the administrator specific to reference data is often established or provided by external companies, organizations, etc.  In the case of social security numbers, you would need this information in the database so employees can be paid and taxes be tracked.  However, the Internal Revenue Department is where the reference data comes from.  The bottom line is that reference data is needed to run a company but it is also information that is used for reference only.  It has nothing to do with the success or failure of the business while still being vital to the operations.