What is a Single Source of Truth (SSOT)?
Single Source of Truth is a concept of data management. Learn why it is important for business.
Some say data is the new oil in a digital economy. Each and every business organisation operates with data yet only few manage to turn this into a competitive advantage for the long run. The reason for this is not simply lack of will for change or expertise but also the nature of data delivery as well.
Businesses usually deal with siloed data coming from multiple different and incoherent sources. Therefore, it is not easy to aggregate data in order to make decisions or make sense through analysis. The multiple stakeholders and the necessity for data-driven decision making turns this into a considerable challenge. So what would be a viable solution?
Single Source of Truth (SSOT) is a concept of data management where all decision makers/stakeholders could rely on easy and quick access to the same data. Incorporating different datasets in order to accommodate this is often a serious technical challenge and a significant investment. In return businesses would receive a completely new data infrastructure that encourages productivity, efficiency and transparency.
Who would benefit from a Single Source of Truth?
Any business that relies on making the right decisions (and often that needs to happen quickly) would inevitably face the challenges of data. Larger organisations are normally exposed to this on a daily basis but smaller businesses also suffer from the inconsistency of data that they work with.
Data silos usually form between different departments in an organisation to a point where they practically operate as detached entities at some point. In order to prevent this business owners and stakeholders need to prioritize a cohesive data strategy of aggregated and centralized data.
What’s the best time to implement a Single Source of Truth?
Like with many aspects of technology and digital initiatives that’s usually last year. Nevertheless, building up a cohesive and sustainable SSOT strategy is not simply another executive task. Thus, it is not enough to have one in order for it to work as it should. It requires input of thought, dedication and proper communication.
Should we implement a Single Source of Truth?
SSOT is not just another novelty. It is not simply about culture either. It is a completely different mentality and perception for business. SSOT marks a new industrial age in this new digital economy where data is not just the new oil but everything else put in one. If we learn to appreciate the phenomenon of data we would be able to find more and innovative ways to make it work for us.
Single Source of Truth is a concept that revolutionizes not only the operational and analytical sides of business but also makes it compatible with Industry 4.0.
To sum up, the real question isn’t whether we should or shouldn’t consider a Single Source of Truth but rather how could we implement it properly. That’s a topic that we are going to address next.