Get in Touch
With Our Experts
+49 711 / 75886-600
Please Type A Message
Let us know where we can contact you
Please click to start verification
Send message
Thank You For Your Message!
We will contact you as soon as possible.
Close Window

Single Point of Truth

Data is one of the most important raw ingredients for a company's success. It is therefore essential that it is reliable and easily accessible to employees. However, as data volumes and IT infrastructures grow, the risk of redundancies, outdated data and inconsistencies increases. To prevent data chaos, companies can work with a "single point of truth".

Definition: What Is a Single Point of Truth?

The term Single Point of Truth (SPOT) describes the corporate practice of operating a central database instead of many data silos. In management, the term Single Source of Truth (SSOT) or Golden Record is sometimes used synonymously. With a single point of truth, companies simplify their data analyses. With a SPOT, they ensure that employees in every department work with a uniform, reliable database.

Advantages of the Single Point of Truth Approach

The introduction of a single point of truth offers companies many advantages. With the increasing importance of reliable data for successful business operations, this data management concept has become a standard.

Single Point of Truth as the Basis for Effective Data Management

The single point of truth architecture ensures the reliability of a company's data inventory on a technological level. Especially when using master data, companies benefit from a central data source, as the data is used by many departments - from marketing to sales all the way to controlling.

However, for data management to support strategic corporate goals, further measures must be taken in addition to implementing a SPOT: Processes, responsibilities and rules for handling data must be established. Only when organizational culture, processes and technology interact will companies tap the added value of a single source of truth.

Single Source of Truth - Application Examples

All departments benefit from the introduction of an SSOT. Three examples from corporate practice:

Single Point of Truth in Customer Relationship Management

Creating an optimal customer experience - from initial brand awareness to purchase and contact with customer support - is the goal of marketing. However, if customer data is not centrally stored or synchronized, this task is nearly impossible to accomplish. A 2020 Salesforce study discovered that 54% of customers feel like they're talking to different companies when they contact a company because information doesn't flow between departments. Then, after making an online purchase with customer support, for example, customers have to mention their data again and describe their concerns from scratch. An SSOT avoids such frustrating experiences for customers.

Single Point of Truth in BIM

In construction projects, Building Information Modeling (BIM) can be used to combine all project and building data from the various trades in one interface. Not only are plans and documentation stored there, the building is also visualized in its entirety in 3D. This bundled database serves as a single point of truth. It makes it easier to prevent collisions and comply with quality standards. Invoices can also be derived automatically from the BIM information.

Single Point of Truth in Business Intelligence

With the help of business intelligence applications, executives can gain a quick overview and detailed insight into how their company is performing in terms of specific key figures. The applications show their added value particularly when they are based on a central database as SSOT. Then they are able to bring together relevant data from the departments ad hoc, prepare it quickly and visualize important correlations.

Single Point of Truth: How Companies Consolidate Their Data Into One Source

The implementation of a single source of truth differs depending on the corporate strategy, technologies and objectives. In some cases, not all data sets are to be integrated in the SSOT, in others, additional data systems are connected successively. However, the basic implementation process is always the same.

1. Inventory

First, all data sources in the company must be identified. What data is collected and for what purpose? This already provides an overview of where redundancies and "data garbage" are collected.

2. Consolidation

Subsequently, it must be clarified which data should continue to be collected or be collected for the first time in the future and which evaluations should be dispensed as they are not meaningful and relevant.

3. Data Governance

Even before the technological implementation of the single point of truth, companies should determine how they want to organize their data collection, data use and data maintenance in the future. Which roles, processes and rules will be required or need to be adapted? Data governance is essential to ensure that the introduction of a SPOT leads to sustainable success.

4. Software implementation

The last step is the selection of a suitable IT solution. In some cases, it is sufficient to use or expand existing systems. In other cases, it is more effective to introduce dedicated master data management systems.

5. Communication

The restructuring of data management into a single point of truth architecture changes the workflows of many employees. The process - change management - should therefore be accompanied by communication right from the start so that teams recognize the benefits for their daily tasks and view new processes as an opportunity rather than a burden.

Frequently Asked Questions About Single Point of Truth

SPOT – Your roadmap

Reliable master data management is the basis for a data-driven organization. Learn how to introduce master data management as a single point of truth in 7 steps in our free whitepaper.
Ihr Webbrowser ist veraltet

Aktualisieren Sie Ihren Browser damit diese Webseite richtig dargestellt werden kann.

Zur Infoseite