What are Data Silos and how to effectively counter them


What are Data Silos and how to effectively counter them

March 19, 2021


Most organizations and enterprises struggle with their data chain. Whether it is the inaccuracy of data or loss of data due to human error, Data Silos have been a bane for several companies worldwide. While a few experts state that Silos aren’t ‘a bad thing’, there could be far-reaching consequences should these Silos prevail in companies.

Data Silos have come in the way of painting the full picture to C-suite executives who are looking to make major strategic decisions using insights drawn from data provided. These silos have also been known to silently tear down organizations, despite them being fairly commonplace in most companies. Here are four ways Silos prove to be major hindrances for companies: 

  1. Limit the view of data  
  1. Come in the way or obstruct collaboration between teams 
  1. Threaten integrity 
  1. Waste valuable company resources 

Where Data Silos Come from.

Structure of the Organization 

In several large organizations, each department is in charge of their own data. This was previously considered as a ‘best practice’ for an organization. However, while looking at making decisions on the management or the C-suite level, there are several hindrances. C-suite decision makers would need to put their heads down and look through bringing the data together, something that would take a lot of time before making decisions.  

Technologies used by different departments 

Internal CRMs or technologies used by different parts of a single organization are different. In the case of retail, for example, the software or CRMs used from store-to-store would also differ. While certain stores or departments would look at maintaining their data chain in a certain manner, data silos are created in the process. The tech tools many organizations use every day have pushed them into silos by the proprietary nature of their data management processes  

How you can crack and overcome these Silos

Overcoming Silos is the key to a seamless and smooth data chain. These silos usually come in the way of productivity and collaboration between different departments of an organization. While we have seen what leads to silos and how they can be the bane of any organization, there are two proven ways to overcome these silos. 

  1. Centralization of data – This is perhaps the most effective and efficient way to overcome or break the silos. Bringing together all the data from different parts of the organization would go a long way in ensuring that C-suite executives can have an overview of the data rather than spending precious time sifting through and collating all the data. 
  1. Integration of data – Efficient and accurate data integration is a good way to prevent the occurrence of silos. Organizations use several tools to integrate data from different parts. 

Looking for a way to overcome data silos? Do drop us a line or sign up for a free consultation today.

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