Are data silos harmful to a business?

Asked 2 years ago

I read an article about data silos recently that basically said that they're a problem for any business. Is this true? What makes data silos so harmful?

Lanny Sutton

Thursday, April 21, 2022

Yes, it is true. When data are stored and isolated, information flow is not seamless and this can be harmful in the following ways:

1. Management won't have enough data to make informed decisions

2. Data of customers will be inconsistent, for example, the data of a customer may be correct with the sales team, but the customer care representative team may not have updated their data of that customer. This makes it harder for the customer care team to assist that customer.

3. Sometimes, data silos occur as a result of negative competition between different departments in the organisation.

4. Lastly, it takes resources to clear out data silos.

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