Data silos: why they suck (and how to avoid them)
Data silos are a problem for businesses of all shapes and sizes. Find out how to break them down and unlock new efficiencies in our handy 5-minute read.
It's a truism that businesses need "joined-up thinking" to thrive. Teams and departments need to communicate and share a clear sense of purpose and identity. The alternative is a wilderness of crossed signals and disappointing profit margins.
In the world of cloud technology, this need for joined-up thinking is reflected in the phenomenon of data silos – repositories of data that are controlled by single departments and kept separate from everyone else.
What's wrong, you might be wondering, with silos? They're just the thing you need if you want to store grain or missiles, so why not data?
The thing is that in a business environment, you want data that can be put to work. Silos do the basic job of keeping the data
safe, sure – but they make collaboration harder and data-driven insights thinner on the ground.
Data silos are a bit like mildew. They tend to creep up on you when you're not looking – and before you know it, you're reaching for the rubber gloves with a frown.
The issue is this. As companies grow, departments tend to develop their own identities, priorities, goals and budgets. Before you know it, the right hand doesn't know what the left hand is doing.
That means the issue applies to companies of all shapes and sizes. While well-established enterprises need to break down these silos, SMEs and start-ups need to stop them from forming in the first place.
So how can you oversee a business that's delightfully silo-free? The answer, our friends, is in the cloud.
Why do data silos matter?
Data silos matter because data matters. We all know this – but many firms don't put their data to work as much as they could. Data isn't just about record-keeping, you know. It's about making evidence-based decisions that can generate more profits.
If data is locked away in different departments, it's not accessible. And if it's not accessible, you're not in a position to learn from it.
Data silos mean your data sets are incomplete – and what's the point of all that juicy data if it's not comprehensive? You'll just end up making half-baked decisions.
Data silos mean that your data is inconsistent. HR, say, has updated its data but finance doesn't get to see it – a recipe for miscommunication, poor data quality and integrity issues.
Data silos mean unnecessary duplicates. These are a drain on IT's purse. Siloed data is inefficient data.
Data silos mean sub-optimal collaboration between teams. You need everyone to be singing from the same hymn sheet – but it turns out that the hymn sheets have typos. This is inefficient as well as frustrating.
And last but not least, data silos mean compliance issues. Now more than ever this is something to be avoided like the plague as regulators crack down on poor compliance with not-to-be-sniffed-at fines.
In the banking sector, for instance,
data silos are making compliance hard. Don't let the same thing happen to you. It's time to break down those silos and make the data work for you.
How do you break down data silos?
Data silos, then, lead to inconsistent data that's not as accessible as it should be. Eliminating them means you can use your data to make better decisions – and spend less money on IT.
Cloud migration is one way to break down data silos. If different departments are using different legacy software solutions, data integration will be a struggle. Old software simply isn't built for easy data sharing.
The cloud, by contrast, is built for accessibility and centralisation – everything in one place, with strict access permissions to ensure safety.
But a technological solution alone won't stop data silos from forming. You also need a proactive data management and governance policy – one whose mission is to nip inefficient data management in the bud.
This policy would answer fundamental but far-reaching questions like "Who has access to what?" and "Where is the data kept?"
Technology, then, needs to go hand in hand with policy – and both need to be put to work in a data-friendly work culture.
There's a reason that the phrase "silo mentality" exists. The siloing of data by department means that departments don't communicate and collaborate effectively. They tend to focus on
their problems, not the problems of the company as a whole.
Unifying data can play a valuable part in joining up departmental thinking and giving collaboration a shot in the arm.
Working with a cloud consultant to break down data silos
If your company is still using legacy software to manage data, you might want to consider migrating to the cloud.
At its most basic, this means that your data is all in one place. You can implement thorough access permissions to keep it safe – but you know that teams are on the same page about everything from sales to payroll, from KPIs to recruitment.
Cloud migration has other benefits too. It's cost-effective – after all, you're outsourcing the maintenance of your software to a third-party provider.
And at a time when hybrid working is the new normal, cloud solutions are the best way to make sure everyone can get the data they need – whether they're on-site, at home or even on the train.
Here at Ascend Cloud Solutions, we specialise in lift-and-shift migration. This is where we move
everything to the cloud – because we believe that this is the most efficient way to work.
Once your data is on the cloud, you have unparalleled access and control. You can hack, prune and empty out those silos to your heart's content. But the first port of call is getting there – and we can help.
At Ascend Cloud Solutions, we've managed hundreds of
lift-and-shift cloud migrations. Want a thorough, efficient service? Please don't hesitate to
get in touch for a no-obligation consultation.
