Data silos and data protection: A growing challenge for modern companies

In today's data-driven business world, information is the life elixir of each company. But too often these valuable data are caught in isolated systems, so-called data silos.

This fragmentation not only impedes efficiency and decision making. However, also represents a major risk to data protection.

In this paper we highlight the challenges arising from data silos and show solutions how companies can resolve their data silos and create an integrated, secure data landscape.

What are data silos and how do they arise?

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

When planning Data silos and data protection: A growing challenge for modern companies from idea to delivery, Data Analytics & Business Intelligence, Discover solutions sowie IT Security offer practical next steps on our site.

Data silos refer to the practice of storing data in isolated systems that only certain departments or teams have access to.

Instead of information flowing freely within the company, they remain trapped in the respective applications, databases or departments such as marketing, sales or human resources.

But how does this problematic separation occur?

Causes of data silos

The reasons for the formation of data silos have grown diverse and often historically:

• Organization structure: Traditional corporate structures with clearly separate departments promote a mentality in which each department uses its own tools and processes and only undivides information.
• Technical diversity: Over the years different software solutions for specific purposes are introduced in different departments. Without a higher-level integration strategy, this inevitably leads to a fragmented IT landscape.
• Enterprise growth:** In mergers and acquisitions, heterogeneous IT systems are often combined without immediate integration. Fast organic growth can also lead to new systems being introduced quickly and without regard to existing architecture.
• Short data strategy: If there is no clear, business-wide strategy for data management, the departments act autonomously and create new silos unintentionally.

The serious disadvantages of data silos for data protection

A fragmented data landscape not only leads to inefficiency and poorer business decisions.

However, also involves major risks for data security and compliance with regulations such as the General Data Protection Regulation (GDPR).

• Inconsistent and incomplete data: If customer data are scattered over several systems, it becomes almost impossible to obtain a complete and correct image of the customer. This makes it difficult to comply with data subjects' rights such as the right to access or erasure. *** Increased security risks:** A variety of data storage means a larger attack area for cyber criminals. Monitoring and safeguarding many.

References and further reading

The following separate 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.

"Cloud-native only pays off when operations, security, and cost model match the architecture—otherwise you ship complexity faster."

— Björn Groenewold, Managing Director, Groenewold IT Solutions

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In short: In today's data-driven business world, information is the life elixir of each company. But too often these valuable data are trapped in isolated systems, so-called...

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