Effective communication, both internal and external, is crucial to the success of any business. That is why data silos can pose a significant problem. While silos may be useful for storing grain on a farm, data silos prevent businesses from communicating by keeping data isolated within a single unit, often incompatible with other systems in other units of the organisation. This creates inconsistencies in data and can lead to poor decision-making as units may not receive the necessary information or receive incorrect data.
Businesses need to prevent data silos from occurring to promote effective communication among all departments and allow for better use of data to grow the business. Preventing data silos can reduce data costs by optimizing IT resources and allocating them to other critical areas. The process of breaking down silos involves data integration and implementing a solid data management and governance strategy.
A TechTarget article provides a comprehensive explanation of what data silos are, how to prevent and eliminate them, and the benefits that your business can gain from doing so.