System of Record is the concept of having a single authoritative source for specific data—a reasonable principle often used to justify rigid ERP implementations that restrict natural value flow.
The Principle
Organizations need:
- Single source of truth
- Data consistency
- Authoritative records
- Clear ownership
The Problem
“System of Record” often becomes justification for:
- Forcing all processes through rigid systems
- Restricting natural workflows
- Creating artificial barriers
- Prioritizing control over enablement
- Maintaining inflexible architectures
The Trap
What begins as data governance becomes:
- Process control
- Workflow restriction
- Innovation constraint
- Adaptation barrier
- Competitive disadvantage
The Alternative
Modern approaches:
- Distributed data with synchronization
- Flexible systems with governance
- Natural workflows with consistency
- Enablement with integrity
- Adaptation with reliability
System of Record for data doesn’t require System of Control for processes.