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Key Points

The benefits of holding all data in one database:

 ♦ Understand the big picture

 ♦ Facilitate business intelligence reporting

 ♦ Improved productivity

 ♦ Better decision-making

 ♦ Learn from past experiences

 ♦ Reduced uncertainty

 ♦ Superior client management

Single Source of Truth

Oct. 2023


With respect to data, a "Single Source of Truth" implies one location where all data is held and typically refers to databases. When departments use different databases (physical or cloud-based), or disconnected software systems, it becomes much more difficult to share data between offices or departments.

It hampers information gathering as well as the analysis of a complete picture of business activities, thereby slowing progress, heightening risks and weakening outcomes.

Knowing input costs, margins and sales pricing, or what worked successfully in earlier initiatives, means companies can learn from past experiences, operate more efficiently and make better decisions.

Data consolidation promotes departmental collaboration while eliminating over-communication and data duplication. It acts as the only reliable source of information, allowing for effective decision-making and operations company-wide.

Challenges of Multiple Databases

Data Fragmentation: Data fragmentation occurs when different departments or offices use distinct databases. It becomes challenging to acquire a complete view of the organization's data because each database only contains a subset. Placing requests for data to a centralized command structure will at best create delays (days or weeks) and worst case would be subject to internal politics that may limit data sharing.

Regardless of set-up, data access should always be protected and restricted to “least privilege”, which means users only have access to data where they are granted access.

Restrictive Data Sharing: Collaboration between departments or teams may be impacted when databases are fragmented. This could slow down meetings and worst case could mean the wrong specs/products are produced if teams work off different data sets.

Suppose a CRM (client database) is separate from the production database. A client requests a feature that is signed-off. Now imagine production/developers work off the wrong requirements. This would create unexpected costs to fix the error and cause reputational damage.

Benefits of a Unified Data Repository

Understanding the Big Picture: A single, centralized database provides a complete picture of current and past business activities and performance, making it easier to follow trends and opportunities. Imagine accessing all historical bid data and outcomes across offices. This input is invaluable when bidding on future projects.

Simplified Procedures: Retrieving supplier prices and margins quickly, allows businesses to interact better with suppliers and respond to customer requirements more quickly and effectively. Streamlined data facilitates sales and client management.

Data Warehouse: For companies unable to work from one system, and when data in different systems is incompatible, the next best solution would be building a Data Warehouse/Data Lake, where all data is pulled into one large system, cleaned, moved into one data format, and from here system-wide reporting is made possible. Of course this entails setting up and maintaining a new database system, which takes time and increases costs. A far better solution is a single enterprise-wide database.

Portfolio, Program, and Project Management (PPPM): Successful PPPM requires a single source of truth. It offers access to past data and the lessons discovered from earlier projects, encouraging ongoing development and effective project execution.

Creating BI Reports: A centralized data repository is essential for efficient business intelligence reporting. The first step is accurate data. Holding all data in one database does not equate to accurate data, due to the potential for user input error. However, it is likely to be more accurate and human errors can be spotted more easily when there is one source. The basis for providing information is accurate and timely data from one source of truth: A single database.

Finally information, in the form of reports, can be generated to produce complete and accurate reporting for decision-makers, enabling data-driven insights and strategic planning.

The Growing Significance of Inter-Departmental Data Integration

Simplified Procedures: Retrieving supplier prices and margins quickly, allows businesses to interact better with suppliers and respond to customer requirements more quickly and effectively. Streamlined data facilitates sales and client management. In a business environment, either an abundance of inaccurate or useless data/information, or a shortage of knowledge, present serious problems. Accessing poor-quality data/information might give businesses a false sense of security possibly resulting in poor decision-making. Similarly a lack of data/information is also problematic as it may impede quality decisions and prompt actions.

When a crisis strikes incomplete or missing data generates additional risks – forcing firms to operate under even greater uncertainty.

An organization's capacity to guarantee thorough data integration across all teams, departments and offices plays a crucial role in mitigating unnecessary uncertainty. It requires cooperation and breaking down traditional silos to lubricate the moving parts of corporate machinery.

Operations: By offering real-time insights into processes, inefficiencies can be reduced, resource allocation improved, while consolidated data assures smoother operations.

Finance/Accounting: For financial accuracy and compliance, a single database is a pre-requisite. It enables GL, AP, AR, financial reporting, internal controls, audits and account administration to be streamlined.

Sales: Consolidated data leads to better sales strategies, by helping sales teams track client activity and make data-driven decisions.

Project management: By enabling access to enterprise-wide data, teams can benefit from knowledge sharing/lessons learned, enterprise-wide planning, inter-project dependencies and risk assessments.