Critical Data Elements (CDE) [Series#2: I am Data!]

This is a new term for data folks as this is a principle rather a process to manipulate data, but it holds a very significant value in terms of managing and securing data.

Let’s decode it…..

Most of us mix Critical Data Elements with elements or data points identified during Data Quality exercise. Though those are also critical but when we talk about ‘Critical Data Element’ in Data Strategy, we categorize those elements which can have negative impact on the organization.

Critical Data Element can be any regulatory requirements, any legal or compliance requirements, those data elements which can negatively impact the image of company in general-public, those data elements which if are found inaccurate make stakeholders’ loss their confidence on data.

Personal Information of customers is one of the most critical data elements in most of the organization. Credit or Debit Card details in Banking sector is critical. Location details in Telecommunication is critical etc.

Master Data and Reference Data are also good examples of critical data elements as without Golden Record there might be duplication of data. Without right code management in reference data, wrong products can be mapped to wrong transactions.

Please note, identifying Critical Data Elements is not technical ownership, it’s Business ownership as some data elements might be critical for one department but not for others.

Now, let me also try to touch-base where there is confusion that Metadata can also identify critical data elements, as mentioned above CDE can be any e.g., if one low quality data element is corrupting many other downstream data elements then it can be categorized as critical, but this is with respect to Data Quality but not at an organization level.

One must understand the difference between technical and business ‘Critical Data Elements’. Technical data element can be fixed by technical folks and may or may not impact company’s image. But on the other hand, Business ‘Critical Data Element’ may cost high to the organization in shape penalties.

Another example of ‘Critical Data Element’ can be those elements which if are not governed and followed properly, may end-up shutting down the whole business.