What's a Data Dictionary and Why is it Crucial?

Why data dictionary is important to your business and data teams

Why data dictionary is important to your business and data teams

Poom Wettayakorn

Apr 25, 2024

Apr 25, 2024

data-management

👋 Hi there, welcome to Datascale: SQL+Data modeling. We help create database diagrams and map out data models from existing schema and SQL queries 🌱. Find us on LinkedIn 🎉

A Data dictionary combines two essential elements:

  • Data' which refers to the information collected from various sources, and

  • Dictionary' a resource that points you to where this information is stored, and details about your datasets.

Together, they form the data dictionary—a tool that collects dataset names, definitions, and attributes in your database system.

This tool is more than just a reference, it's essential for data management and team collaboration. While a data dictionary serves as a centralized metadata repository at its core, it has evolved into a modern solution for understanding data context across the entire lifecycle (i.e., Data catalog)

Let’s explore why this tool is important:

  • Documentation

  • Standardization

  • Data Discoverability

1. How data dictionary drives business efficiency

In the past, data dictionaries were simple and basic, they acted as reference books, providing a catalog that defined each data element down to the individual column level within the databases. 

However, data dictionaries have come a long way since those days. They are no longer just static collections of definitions. 

Modern data dictionaries can:

  • Be active guides for metadata management

  • Dynamically track changes 

  • Generate tables context and tags

    • E.g., Frequently joined tables

    • Popular columns

    • Related queries

This elevates data dictionaries to become foundational tools for understanding and utilizing organizational data.

The impact is significant. Research from Harvard Business Review found that data scientists previously spent around 80% of their time simply cleaning and organizing data, leaving only 20% for actual analysis. With enhanced data dictionaries, data analysts are able to go through dataset easily and focus more time on the analytical work.

Data catalog with related queries

2. What happens when you skip the data dictionary?

Imagine your dataset with no one to keep it organized (no tables/columns description!) A well-set-up data dictionary includes everything from field names and data types to who owns the data and keynotes on each field.

The main cons of not having a data dictionary include:

  • Lack of standardization

  • Inefficient data discovery

  • Poor data governance

  • Difficulty in onboarding new users 🤯

  • Inefficient data analysis 😮‍💨

3. Values of a Data Dictionary

The traditional role of a data dictionary is to document all data elements - column names, definitions, data types, etc. In enterprises with thousands of datasets, this documentation is critical for preserving institutional knowledge and maintaining a standardized data practice. Without it, organizations risk data silos, redundancies, and loss of insight when employees leave.

As data complexity increases, data catalogs and searchable data dictionaries become essential for teams to confidently discover and understand datasets for analysis. AI-driven data dictionaries use natural language processing to make data intelligible.

Below is a simple example of how Datascale modern data dictionary solution works:

AI-powered data dictionary

Reach out to us, and let's discuss how we can help you automate your data dictionary.

At 🐧 Datascale, the next-gen metadata management, there're 3 core values that we believe in:

1. Shared knowledge within data teams
2. Networked ideas from all the queries
3. Discovering how data is used

Enhancing data discovery with an AI data dictionary + related queries. This automated data catalog will provide your team with:

1. Context of your datasets
2. Table usage stats: frequently used columns, who worked in this table, and more.
3. Find relevant queries

Data dictionary with query usage context

⭐️ Think data dictionary with query insights - I believe we can start simple.

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