What are data silos?
The term data silos refers to isolated data sets or systems or system components in which business-important data is stuck or is only insufficiently integrated. As a result, it is not possible to orchestrate effective communication between different organizational units. However, this would be necessary to initiate a smooth process.
The multiple causes of data silos
Data silos can have various causes, but they always testify to a massive communication problem. Technologically based explanatory patterns on the one hand and socially colored templates on the other hand can be roughly identified.
The former category primarily includes legacy systems, which can result in massive difficulties in integration and associated data exchange between different software environments. Older systems and technologies that have been developed and maintained over many years can therefore lead to data silos, as they may not be compatible or only insufficiently compatible with modern systems and standards. Legacy systems therefore cause difficulties, which can result in isolated data stores.
Another technological explanation for the occurrence of data silos is poor data standardization or the lack of a coherent data strategy in general: If, for example, uniform standards for data structure, storage and management are not defined, data silos can easily arise. Especially when different departments and/or systems use their own data models and formats, this can lead to incompatibilities and difficulties when exchanging data.
On the other hand, there are reasons for the development of data silos, which are primarily shaped by the realities of life of employees. In these cases, the backlog of information is therefore due to the reality of social life: On the one hand, these can be organizational data silos, i.e. information barriers that can be directly attributed to a lack of communication between different departments. On the other hand, we often also have to deal with cultural barriers that permanently impair the flow of information.
How to address data silos
To avoid or eliminate data silos, it is important to develop a holistic data strategy, set standards for data formatting and management, promote collaboration and communication between different departments, and facilitate integration of systems and technologies. An inclusive corporate culture that promotes collaboration and the exchange of information through interpersonal, informal proximity can ultimately help to prevent data silos in the long term. It is just as important not to oversleep the essential updates to your own hardware and software and to ensure adequate technological conditions at all times that are extremely beneficial to communication.
Conclusion on the dangers of data silos
Data silos pose a threat to pretty much every company, regardless of which industry you're in. At the moment when data is being handled and it is a company in which functional differentiation prevails, the risk of data silos forming is real. It is worthwhile to review data management and data governance at regular intervals with the help of experts so that business can continue to be carried out securely in the future.
