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    Source of Truth

    A source of truth is a tool or strategy that provides business data. When a business has a single source of this truth, they’ve aggregated all their data into one central system.

    What Is a Source of Truth?

    Today’s businesses have many pipelines through which data flows in and out, including product information systems, point-of-sale systems, and manual tools like spreadsheets. 

    When these pipelines are siloed, however, it’s difficult for the business to glean insights or trends from the data therein, and it’s even harder for different departments — like marketing, sales, and finance — to control versions of the information and collaborate based on that data. 

    Aggregating all of this data into one single source of truth helps organize all of the information, ensure that all parties involved have access to the most up-to-date insights, and enable teams to make decisions based on the same set of data.

    A product information management (PIM) system, for example, houses product details in one location — allowing marketing, product development, and retail teams to access the same accurate information about a product at any given time. This helps reduce errors and increase operational efficiency.

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