A system of record (SOR) is an information storage system that serves as the authoritative data source for a given data element. It is the primary repository where data is created, updated, and maintained, ensuring data integrity and validity across an organization. This single, definitive source is essential for reliable business processes, analytics, and regulatory compliance.
A system of record is vital for maintaining data integrity across an organization. Without it, conflicting information from different systems can lead to confusion and poor decision-making. A single, authoritative source ensures everyone works with accurate data, fostering trust and strategic alignment.
This consistency streamlines operations, reducing errors and the need for manual data reconciliation. It also provides a clear audit trail, which is essential for regulatory compliance and governance. Ultimately, a reliable SOR is the foundation for trustworthy analytics and scalable business processes.
A system of record is defined by several core characteristics that ensure its reliability and effectiveness. These features establish it as the definitive source for specific data elements, maintaining data quality and operational consistency.
While both are crucial for modern data architecture, systems of record and systems of engagement serve fundamentally different purposes.
Systems of record are foundational across various business departments, ensuring that core data remains consistent and reliable. They serve as the definitive source for critical information, preventing discrepancies and supporting key operational functions.
Implementing a system of record presents several key challenges that require careful planning.
Can an organization have more than one system of record?
Yes, organizations often have multiple systems of record, each serving as the authoritative source for a specific data domain. For example, an HR system for employee data and a CRM for customer data.
How is a system of record different from a data warehouse?
A system of record manages real-time, transactional data for daily operations. In contrast, a data warehouse stores historical, aggregated data from multiple sources, optimized for business intelligence and analytics rather than transactions.
What role does a system of record play in data governance?
An SOR is central to data governance. It enforces data standards, ensures data quality, and provides a clear, auditable trail for all data changes, which is essential for compliance and maintaining data integrity.
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