Single Source of Truth
What is a Single Source of Truth?
Single Source of Truth (SSOT) is a data management term. It refers to a central data platform in the enterprise that is accessed by all other systems. Ideally, this is done via a bi-directional connection so that data adjustments from other systems are automatically adopted and the SSOT is maintained. An SSOT is one of the foundations for ensuring the consistency of master data in an enterprise.
What are the benefits of a Single Source of Truth?
On the one hand, the elimination of inconsistent or redundant data increases data quality and thus its reliability for the company. This in turn serves as the basis for making intelligent decisions. On the other hand, a Single Source of Truth leads to significantly less time spent verifying the accuracy of recorded data. The 360-degree view of relevant information, such as customer data, also means that every department has the same level of knowledge, giving every employee a holistic view of the business. The cost factor should also not be overlooked, as multiple maintenance often results in unnecessary costs. In addition, companies with an SSOT enjoy significant competitive advantages, as they can act more quickly due to the uncomplicated flow of information. It is not for nothing that the Single Source of Truth is considered the nervous system of a company.
Single Point of Truth
A Single Point of Truth, SPOT, is essential for quick action. It is a single, reliable, and up-to-date database for the entire enterprise. This typically includes all master data such as customer, supplier, financial, and product information. With a Single Point of Truth, inconsistent data management in co-existing data silos is impossible. Instead, there is a single data source that serves all connected systems.
How can a Single Source of Truth be implemented?
The first step is to take stock. Specifically, this means getting an overview of relevant and redundant data and sources:
- Where are there information overlaps in the collected data?
- Where are they located? Perhaps in different locations?
From here, a clear goal with a concrete solution approach should be defined. Above all, the requirements that an SSOT should meet must be defined. The final step is to physically consolidate the data into a target system. Finally, employees from all relevant departments are informed about these innovations.