A Single Source of Truth is a centralized data library that stores the most up-to-date, complete, and accurate information of an organization. It achieves this by aggregating data from various systems and applications within the company.
Given the vast amount of data organizations handle today, Single Source of Truth solutions are fundamental, especially for data-driven companies. They enable better decision-making, a deeper understanding of the customer journey, and more efficient data and information sharing across different areas of an organization, among other benefits.
Why Is It Important for Companies to Have a Single Source of Truth?
Here are some of the benefits of implementing a Single Source of Truth at your company.
Cost Reduction
Having a Single Source of Truth simplifies data management within a company, thus reducing the resources needed for this task, both in terms of infrastructure and personnel.
Better Business Understanding
Having all company data in one place, and being able to combine it allows teams to better understand the data and know how each piece contributes to the business.
Elimination of Data Silos
Data silos are databases that are part of the same company but are isolated and do not share information with each other. It's common for teams that have access to one database to not have access to others.
The existence of data silos, although sometimes justified, can lead to negative effects such as making erroneous decisions, duplicating efforts, or providing poor customer service.
Implementing a Single Source of Truth consolidates all data and allows access to all team members, avoiding these problems. This also contributes to more effective collaboration, as all teams work with the same data source.
Elimination of Data Duplication
With different databases, it is possible for many data points to be duplicated, appearing in multiple sources. This results in unnecessary resource expenditure and can lead to contradictory data if one database is updated and another is not.
Having a Single Source of Truth not only optimizes storage space but also integrates the data to ensure it is up-to-date and free of contradictions.
Faster Data Recovery
Data recovery involves restoring lost, damaged, or deleted documents, information, or files. A Single Source of Truth can aid in these actions by simplifying the detection of altered data.
Increased Transparency
If you want to promote a culture of transparency in your company, having this centralized data library is a good way to achieve it. All team members will have access to the same data source, without discrepancies.
What Challenges Does Implementing a Single Source of Truth Present?
Despite its numerous benefits, creating a Single Source of Truth in a company is quite a challenge. Here are the main challenges you will face and need to consider.
We don't mention these to discourage you, but it’s good to be prepared and have a full understanding of this.
Integrating Data from Different Sources
As a company, your data likely comes from a variety of sources, each with different standards, structures, and formats. Integrating them into a single library will be a significant effort for professionals, though integration tools can assist in this process.
Gaining Team Acceptance
Teams will need to adapt to the new library, which might take some time. Some members may even resist the change. As a company, you must provide sufficient support to help them adjust as quickly as possible and explain the reasons for the change.
Ensuring Data Quality
Another task for data engineers will be to ensure the quality of the information. To achieve this, there must be a pre-existing data management and quality policy. A Single Source of Truth can be very reliable, provided this aspect is executed correctly.
Guaranteeing Data Security
It is crucial to protect data from potential cyber-attacks. Both this and the previous point are ongoing tasks that never end.
Examples of Single Source of Truth (SSOT)
ERP
An Enterprise Resource Planning system is business management software that automates various functions across different areas (production, accounting, finance, etc.) by centralizing data on a single platform.
CRM
A Customer Relationship Management system centralizes and stores all customer information, including personal data and purchase processes.
Product Catalog
These catalogs compile and store information about all the products the company offers.
How to Implement a Single Source of Truth in Your Company
Define Clear Objectives
Establish which data you want to integrate and the needs of the teams that will use the source daily.
Analyze the Data Situation
Investigate all the sources you want to integrate and the quality of the data they contain. If there are data silos or duplications, they need to be addressed to prevent them from entering the SSOT.
Choose the Right Technology
Select the most optimal SSOT tool for your company. Analyze the market and compare different solutions, considering factors like scalability and ease of use.
Develop an Implementation Plan
Clarify how data migration will occur and outline data quality and security policies.
Train Your Teams
Train your teams to use the tool thoroughly and explain the importance of having an SSOT in data management.
Pere Munar
Data Scientist at Cyberclick. PhD in Astrophysics from the University of Barcelona with more than ten years of research experience through data analysis and interpretation. In 2019 he redirected his professional career to the world of Data Science by graduating in Data Science and Big Data from the UB, as well as participating in the Science To Data Science (S2DS) program in London. He is currently part of Cyberclick's Data Science and SEM team.
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