Reference data is a critical part of any data management strategy. It provides the foundation upon which all other data analysis and decision-making are based. Reference data consists of the basic information that describes a dataset, such as the name of the dataset, the columns that make up the dataset, and the values that appear in those columns. Different industries have different ways of using reference data. Some use it to track their inventory, while others use it to keep track of customer information, and some use it to monitor their performance. Keep reading to learn some examples of reference data and how different industries use it for Data Science.
Role of Reference Data
Reference data is also considered metadata. Metadata provides information about the structure and content of a dataset, which can be used to improve the usability of the data and to support data analysis and decision-making. Reference data is typically stored in a database or data warehouse, separate from the data that is being analyzed. This helps to ensure that the data is always up-to-date and accurate. It also makes it easier to access and use since the data is organized in a way that is easy to understand.
Reference data is essential in the technology industry because it’s used to develop new products and services. It can also be used to improve operations efficiency, support decision-making, and identify new market opportunities. The technology industry can include information about patents, trademarks, products, services, customers, and competitors. By ensuring that your data is accurate and up-to-date, you can improve the usability of your data and make better decisions based on your data analysis.
Travel and Transportation Sector
The travel and transportation sector is one of the most important industries globally. It includes airlines, hotels, car rental companies, and other businesses that help people get around. This industry relies heavily on reference data to function smoothly.
Airlines use data to track passenger information and luggage. They need to know how many bags each passenger is checking in, where they are sitting on the plane, and what gate they are departing from. Airlines also use reference data to price tickets and route flights.
Hotels use reference data to keep track of their guests’ reservations. They need to know each guest’s name, room number, and check-in time. They also use reference data to set prices for their rooms and services.
Car rental companies use reference data to keep track of their vehicles and each car’s make, model, color, and license plate number. Car rental companies also use this data to determine how much they should charge for different vehicles and services.
One of the most important aspects of running a retail business is knowing what reference data on what products are available and how much they cost. Retailers use reference data to make pricing decisions, plan inventory, and create marketing materials.
Reference data can come from many sources, including manufacturers, distributors, and other retailers. Retailers must have access to as much accurate reference data as possible to make informed decisions about what products to stock and how much to charge for them.
Energy and Utilities Sector
The energy and utility sector of the economy relies heavily on accurate reference data. This sector includes electric power generation, transmission, and distribution, natural gas distribution, water supply, sewerage systems, and other types of public infrastructure. The capital investments in these industries are often substantial, and projects can take years to complete. For this reason, the engineering and construction teams must have access to accurate information about the physical assets they are working with and the surrounding environment.
One common application is for route planning and network design. Engineers need to know where the best locations are to put new power lines or pipelines to be most efficient and cause minimal disruption to people’s lives and businesses. Reference data can also be used for environmental impact assessments, permitting processes, asset management, etc.
The accuracy of reference data is critical in the energy and utility sector because there are often significant safety implications if something goes wrong. An incorrect map could lead engineers to build a pipeline over a fault line where it could rupture and cause an explosion.