You’re probably familiar with the concept of a Noun and a Verb. A noun represents a person, place, or thing. A verb represents the action that a person, place, or thing participates in. In many languages, this concept is introduced in grade school.

If you can make this distinction then you have some of the fundamental tools to describe Master Data and Transaction Data. Master Data represents the people places or things that an organization needs to manage. Whereas Transaction Data represents the events that your organization is engaged in. The problems presented by Master Data vs Transaction Data are really what Master Data Management and Data Warehousing are all about.

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