Single Source of Truth
When an organization makes data-driven decisions, it might face difficulties when the database systems are organized in silos because not all employees use the same data. To overcome this difficulty, businesses are currently moving toward a single source of truth model.
A single source of truth acts as a warehouse for the company’s data, where everything can be located through a single reference point rather than a system, tool, or strategy.
For example: If a person types a question about their preferred cafeteria, Google wants to be the only reliable source of information about this cafeteria, including its opening and closing times, phone number, addresses in the area, and menu. Google combines data from various sources (including Google maps, the cafeteria’s website, Google ratings, etc.) to serve as the searcher’s only reliable source for information about that cafeteria.
Benefits of Single Source of Truth
Build a Comprehensive View
An organization can assess how each business unit is progressing in its mission by combining data on finances, customers, marketing, sales, and IT. This enables management to monitor goal-related progress and forecasts future growth and trends based on historical context.
Choosing the Right BI Tool and Technology
Using tools and technologies that can automatically prepare, migrate, and integrate data from silos to a centralized data platform creates a better impact because stitching or blending data in and from silos is time-consuming and error-prone. Selecting the right platform and technology is essential for achieving present objectives and planning for the future.
Eliminate Duplicate Data
Different teams might unknowingly track the same information without a single source of truth. To better use storage resources and maintain access for both groups, a single source of truth eliminates the possibility of duplicate data. Data quality is increased because teams are prevented from coming to different conclusions.
Greater access to corporate social responsibility metrics and other information that employees value is made possible by a single source of truth. Additionally, employees can see how their efforts help the company achieve its overall goals, which fosters job satisfaction and fulfillment.
With the evolution of Single Source of Truth, companies can now say goodbye to information silos and time wasted looking for alternative solutions that keep data integrated into one place. Every piece of information is concisely communicated and readily available to everyone.Â« Back to Glossary