Foundational data: An interoperability enabler

In an increasingly interconnected public sector, mastered foundational data, underpinned verified business identifiers, is more than just a technical necessity. It’s a strategic asset. These identifiers serve as the backbone for interoperability across systems and departments, enabling smarter decision-making, fraud prevention, regulatory compliance, and operational efficiency. Yet, the process of assigning and managing business IDs is far from simple. Without a robust strategy and the right data partner, departments risk duplication, outdated records and missed opportunities.

Interoperability – Why now?

The UK government has made interoperability a central pillar of its digital transformation strategy. When it comes to data, this looks like having common data standards and promoting cross-government collaboration on data exchange. The aim is for systems and data to interact reliably, whether within a department or across multiple agencies. 

When data interoperability is done right, it leads to:

• Better outcomes for citizens through more responsive services
• Efficient use of resources by reducing duplication and manual work
• Enhanced data quality and governance
• Greater transparency and accountability

It also supports broader goals like fraud prevention, regulatory compliance, and smarter procurement.

In practical terms, assigning a unique business identifier to data records is a good way to make this a reality.

A business ID is more than a number – the key to connected data

Many departments already rely on business identifiers to track interactions across systems, enabling, for example:

• Tracking relationships within and across agencies
• Detecting fraud and monitor compliance
• Improving operational efficiency
• Making informed, data-driven decisions

These identifiers are not just administrative tools—they are enablers of insight. However, their effectiveness depends on the quality of the underlying data set.

When built on robust, verified data, they reveal connections between entities that would otherwise remain hidden and allow for the aggregation of data sources within key tools and stitch together different technologies.

The importance of well-verified data and governance

While assigning unique IDs to business entities to achieve the benefits outlined above may appear straightforward, the reality is more complex and rests heavily on verification. Inadequate efforts can shorten a dataset’s useful life with duplication and missed updates leading to discrepancies. 

Verification is a crucial part of an effective data strategy. It creates trust around the business ID which all information is linked to. For example, when gathering vendor lists from local authorities, it’s essential to confirm the legitimacy of those businesses and be aware of any issues—especially since fraudulent entities often register on and exploit systems that are not ‘policed’. 

And it’s not a one-time activity. Due diligence is an ongoing need because business data is dynamic. Companies evolve, relocate, or close, and without continuous maintenance, even the best datasets degrade. Departments must verify new businesses, confirm truthful reporting, remove defunct entities, and update records for those undergoing changes. This requires more than relying on businesses to self-report and needs a level of governance to ensure accuracy, connection and data security.

The necessary level of verification and governance can be resource-intensive and may involve direct outreach or independent investigation. Many departments lack the resources to do this. 

Fortunately, numerous ready-mastered data sources exist, and departments can benchmark their data against authoritative records without conducting all verification themselves. Unfortunately, not all data sources are created equal. Open data, although free/low cost, often lacks the depth and coverage of paid sources. The key is to base identifiers on the most trusted and comprehensive data available to ensure a solid foundation for future missions.

The role of a trusted data partner: matching and standardising your data

A good data vendor partner can be a valuable paid source of high-quality, verified data to support government departments. Third party data providers not only supply ready-mastered data but also help departments match, standardise and maintain records, ensuring consistency and accuracy over time. High-quality reference datasets are vital for benchmarking and cleaning existing records. 

Experienced partners provide more than data. They help build a strong foundation by offering:

• Verification layers and the ability to cross-reference entities against sanctions or compliance lists.
• Global data stewardship and governance to maintain data and provide ongoing support and updated reference data.
• Monitoring for change and providing proactive alerts to departments, even when the business itself fails to report.

All the above combine to maintain data integrity over time, supporting the department’s broader missions with reliable, up-to-date information.

What to look for in a data partner

The value of a partner’s offering encompasses both the quality of the data they provide and the support they offer for using that data effectively. Departments should seek vendors that offer:

• Ownership of ID data. Partners that own identification have the power to change information immediately if it’s incorrect or to add new entities where they don’t already exist. By contrast, data resellers rarely have that capability. Working directly with the owner of the data makes it easier and quicker to deal with anomalies, keeping datasets cleaner and more reliable.

• Scale. Partners that deal directly with large numbers of business entities have processes in place to add, delete and update records as needed. Partners with comprehensive geographic reach make it easier to expand coverage, particularly in parts of the world where translation issues can potentially lead to incomplete or inaccurate records.

• Access to decisioning data. The more data a partner can offer tied to a given ID, the greater the analytical potential for downstream missions and decision-making. Depending on the agency and the mission, this could include firmographic information, corporate ownership data, business transaction data, supplier information, credit scores and other risk-related information derived from a variety of ancillary data sources.

• A flexible, technology-agnostic approach. Without high-quality data, technology means little. The ability to connect natively to as much data as possible saves resources and generally offers greater flexibility to support downstream missions. Good partners should also be able to help build out APIs and develop your systems as needed to customise the data you need to your environment using established protocols and data structures. They will probably also partner with key technology players, to ensure their data flows and integrates seamlessly with their solutions. That approach offers the flexibility to change, add and update data, as well as supporting rich metadata and traceability.

Foundational data, when properly verified and maintained, can unlock long-term value for public sector organisations by improving access, and the ability to interpret and use effectively across departments. Trusted data vendors play a critical role in building resilient systems that support both current operations and future missions. 

If you’re looking for support with data interoperability, contact us for more information at hello@dnb.com.