Which approach uses a single central copy of the master data for all operational information systems?

Which approach uses a single central copy of the master data for all operational information systems?

• A. Centralized Approach
• B. Registry
• C. Hybrid Approach
• D. NoSQL

Answer: (A)

The idea being tested is having one official source of master data that all operational systems rely on. A centralized approach keeps a single central repository containing the master records (like customers, products, or vendors). All systems reference this one source, so updates happen in one place and every system sees the same, up-to-date information. This reduces duplicates, inconsistencies, and reconciliation effort, creating a true single source of truth for master data. A registry, by contrast, stores metadata and pointers to where data resides rather than the master data itself, so it doesn’t provide a single centralized copy. A hybrid approach mixes centralized and local copies, which means there isn’t just one central copy for all systems. NoSQL is a database paradigm and doesn’t inherently mandate centralizing master data across all operational systems.

The idea being tested is having one official source of master data that all operational systems rely on. A centralized approach keeps a single central repository containing the master records (like customers, products, or vendors). All systems reference this one source, so updates happen in one place and every system sees the same, up-to-date information. This reduces duplicates, inconsistencies, and reconciliation effort, creating a true single source of truth for master data.

A registry, by contrast, stores metadata and pointers to where data resides rather than the master data itself, so it doesn’t provide a single centralized copy. A hybrid approach mixes centralized and local copies, which means there isn’t just one central copy for all systems. NoSQL is a database paradigm and doesn’t inherently mandate centralizing master data across all operational systems.