Simply explained, reference data is data that serves as the model for all other data throughout an organization. It is contained within tables and databases, which help bridge one source system to another, and provides the foundation for the entire data architecture. Together with the initiative set forth by the overall data governance program, reference data maintains consistent data across all departments and allows for source system inter-communication.

Reference Data tables are entities that compose the framework of the reference data architecture, providing lists of values for each department and the company as a whole. They contain either the backbone data in its base form (central authority) or data that is a derivative of the base-form data (tables used in the various branch systems throughout the enterprise).

Each department within a company works with table data fields in a particular format that suits their processes. Although department A might deal with the same product as department B, the alphanumeric codes or text that represents that product may differ between the two departments. To allow these two separate systems to operate according to their own lists of data, both systems are also connected to the central authority, which drives the same authenticating information to both departments and confirms the same product is being referenced.