Keeping up with data these days is hard enough, but keeping up with the definitions of different types of data can feel near impossible. Data can technically be defined as any amount of objective information related to a topic, and as such, how data can be defined is limitless. Defining data comes down to explaining what a piece of data is and how it is measured. Depending on your industry and the types of data your company gathers, you may face an uphill battle when trying to juggle all of this information.

To overcome this challenge and get a better understanding of data, many companies compile data dictionaries. These are documents that define data and also provide various use cases. If you’re concerned about keeping up with the definitions of data in your projects, below are three benefits of having a data dictionary:

Promotes Consistency

Defining data promotes consistency across large organizations. If different departments use differing definitions when analyzing data, this will undoubtedly lead to issues. For example, suppose your sales team defines a conversion as a sale, but your marketing team defines a conversion as a website visitor filling out a contact form. In that case, you need to create an objective definition. With data clearly defined in a dictionary, there are fewer opportunities for misunderstandings.

Creates a Repository

If your company deals with numerous data definitions, having them spread out in many different places makes it time-consuming to hunt down facts. When you utilize a dictionary, all definitions for data are contained in a repository that can be made available company-wide. Using digital technology, your dictionary can be stored in the cloud and made accessible on demand through remote connections.

Allows for More Productive Reporting

When your company issues reports to customers or vendors, you need to be able to provide definitions for data to explain how your reports arrived at their conclusions. While you may choose to make your dictionary available to customers upon request, it may also be more efficient to provide definitions only when a customer or vendor asks.

Author Resource:-

Emily Clarke writes about the best data catalog tools and data analysis softwares. You can find her thoughts at data management blog.