Why data silos pose a serious problem

Dissolving data silos: Change Management Don't forget

Short: In today's data-driven business world, information is the life elixir of each company.

In today's data-driven business world, information is the life elixir of each company.

But too often these valuable data are caught in so-called data silos – isolated systems that hinder the free flow of data and cooperation between departments.

The resolving data silos has therefore become a strategic priority for many companies. But the technical integration of systems is only half the rent.

At least as important is a well-thought-out change management to take employees along this path and sustainably anchor the change in the company.

Executive answer: > # Resolve data silos: Change management don't forget > > In today's data-driven business world, information is the life elixir of each company.

For Why data silos pose a serious problem, see Data Analytics & Business Intelligence und Discover solutions on our website for implementation paths and planning.

Data silos often arise organically when different departments introduce different software solutions and systems to fulfill their specific tasks.

What initially appears as a pragmatic solution quickly develops into a serious obstacle to the entire organization. The negative effects of data silos are diverse and extend far beyond pure inefficiency:

• Fehlende 360-degree view on the customer: If sales, marketing and customer service work on separate databases, a fragmented image of the customer is created. Personalized offers, proactive service and a consistent customer journey are almost impossible. The result is unsatisfied customers and missed sales opportunities.
• Inefficient and error-prone processes: Employees need to transfer data manually between systems, which is not only time-consuming, but also extremely fault-prone. Such redundant activities demotivate employees and bind valuable resources that could be used for more valuable tasks.
• Dangerous data quality and integrity: Data silos are inevitably inconsistencies and duplicates. This leads to a lack of trust in your own data and forms a bad basis for data-based decisions. Faulty analyses and forecasts can result in expensive strategic misdecisions.
• Research cooperation and departmental selfism: Data silos promote thinking in departmental boundaries. Instead of working together on higher-level corporate goals, each area only improves its own processes. This hinders cross-departmental cooperation and innovation.
• Reducing innovation and digitalization: The introduction of new technologies such as artificial intelligence or machine learning requires an integrated and high-quality database. Data silos are a massive innovation brake here and prevent companies from fully exploiting the opportunities of digitalization. ♪ The central role of change management The introduction of a central data platform or the integration of existing systems is an important technical

References and further reading

Short: The following independent references complement the topics in this article:

The following independent references complement the topics in this article:

• Bitkom – German digital industry association
• German Federal Office for Information Security (BSI)
• European Commission – Digital strategy
• MDN Web Docs (Mozilla)
• W3C – World Wide Web Consortium

"AI in mid-sized companies works when processes are measurable and data is trustworthy—a pilot without a success metric is theatre."

— Björn Groenewold, Managing Director, Groenewold IT Solutions

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In short: > # Resolve data silos: Change management don't forget > > In today's data-driven business world, information is the life elixir of each company. But too often are the...

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