In the world of business, a business term refers to a specific word or phrase that describes a concept used in a particular branch of the industry.

Capturing and defining these terms is essential for effective reporting and operations.

A business glossary serves as an inventory of these terms under governance, but it is not an enterprise dictionary of knowledge.

To create data authority, the glossary should only define real business objects with specific operational and reporting meanings, and not conceptual objects.

Last week, we looked at the benefits of a business glossary.

In this article, we will explore what business terms are and their importance in the business world.

1. Definition of Business terms
2. Business terms and meaning
   1. Report catalog
   2. Business Processes
   3. Business rules and standards
   4. Technical metadata
3. Conclusion

Definition of Business terms

A business term is a word or phrase that describes a concept that is used in a particular branch of business. This is not a theoretical construct but rather and attempt to define the meaning of the business term as it is used for reporting or operations.

Examples may include annual leave, customer, purchase orders, and personal loans.

The business glossary should not be considered an enterprise dictionary of knowledge but rather an inventory of business terms under governance.

Business terms and meaning

The real value of the business glossary can only occur as we begin to link business terms to their use within the business.

For example, business terms may be used in reports, may be governed by rules or standards, may be created (or destroyed) by a business process, etc. defining business terms is one of the key roles of data stewards

Best practice suggests that we do not treat business terms as conceptual objects – in other words, if a term does not represent a real object that is in use in the business then we should not govern it in our glossary.

The terms sick leave, customer, purchase order and personal loan represent real business objects that have specific operational and reporting meanings. Our glossary should define them in terms of their consistent business use across the enterprise. This is what creates data authority

In order to properly define Business terms and their meaning, our glossary must also support the business structures and artefacts that use or define them. These include:

Report catalog

A set of report definitions that use particular business terms

Business Processes

A set of business processes that produce or destroy business terms

Business rules and standards

A set of rules and standards that apply real-world restrictions on business terms

Technical metadata

It must also be possible to link business terms to the technical metadata (applications/systems, schemas, tables and columns) that represent these business terms in our data landscape

Conclusion

In the intricate dance of business, precision is paramount. Business terms transcend mere linguistic constructs; they’re the threads that bind diverse sectors, enabling effective communication and streamlined operations. As organizations forge ahead, the business glossary emerges as a beacon of data quality, not just a collection of definitions, but a dynamic entity that shapes the very language of success. It’s a roadmap to clarity, a compass for decision-makers, and a cornerstone of unrivalled data authority.