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What is a System of Record? | IBM
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A system of record (SOR) is an authoritative source of business data. SORs can contain authoritative data on customers, employees, products, suppliers or other assets and entities related to everyday business processes. Organizations use SORs to streamline core business functions and business decisions. “SORs help ensure that different systems within an organization can reference the most up-to-date, verified versions of important data elements.” SORs can also have cybersecurity applications. For example, organizations might use a secrets vault as a source of record for important credentials, or an identity and access management (IAM) system as a source of record for network users and their permissions.
Many SORs have built-in automation workflows for data validation. Workflows can be as simple as ensuring that data matches an expected format (for example, that a date is written as MM/DD/YYYY) or as complex as comparing data to reference sets or applying business logic (for example, a purchase cannot be listed as occurring at a future date). “SORs often integrate with other tools and software through application programming interfaces (APIs) or other connections so that newly entered or updated data can flow to the systems that need it.” Data access
Additionally, changes to customers records must quickly propagate to the CRM, the MDM or golden record and the multiple systems that rely on this information (such as a marketing app that uses contact information from the CRM to send offers). “Many SORs have built-in automation workflows for data validation.” Synchronization requires large-scale integration across information systems and business apps. SORs often integrate with other tools and software through application programming interfaces (APIs) or other connections so that newly entered or updated data can flow to the systems that need it.
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