Are data silos undermining digital transformation?


At a time when digital disruption seems to be super-fast, enterprise digital transformation needs a bold vision and intent to embrace change. With the global digital transformation market expected to arrive $2.8 trillion in 2025And the Leaders are accelerating their transition to digital across their organizations. As organizations correct their course and adapt specific strategies along this journey, they need a sound understanding of their data to make informed decisions.

Data-informed decisions are needed for digital transformation

The understanding required for data-informed decisions is that high-quality data is at the heart of all digitization initiatives, from providing invaluable insights to revealing strategies for underlying operational efficiency. This is the reason why organizations should be careful about creating data warehouses.

today 73.5% Most leading companies rely on data to make their decisions. In almost every organization, data is collected from various sources for analysis and critical business decisions. And while the number of such sources may number into the thousands and into the millions, configuring data warehouses across the enterprise is a corollary.

Although modern databases and repositories are more powerful, it is difficult for them to avoid data repositories altogether, which prevents them from realizing their true potential. digital transformation initiatives.

Problems with data silos and other blocks of digital transformation

In fact, 89% of today’s IT leaders view data silos as one of the major obstacles to digital transformation. The formation of silos is often the result of a combination of factors, including mergers and acquisitions, separate teams, dynamics between departments, lack of data control, etc.

To prevent data pockets from forming across organizations, organizations must cultivate a culture of data sharing rather than a culture of data ownership. Elimination of silos begins with a cultural shift, which entails a change in perspective starting at the top in the organizational hierarchy. Organizations can adopt several strategies to eliminate such data silos And prevent him from always.

Here is a list of ways to keep data silos at bay

Enhanced data sharing environment

Different teams in the company keep data close to their chest, because data is knowledge, and knowledge is power. Different sectors usually operate using exclusive terms and processes related to their departmental objectives. Each team sees it as a bit distant and distinct from the others, and separate workspaces exacerbate this spirit of dissonance.

All of this leads to a sense of ownership and an unwillingness to share data with other teams between individual groups, which can be detrimental to the interests of the larger organization. Instead, organizations can nurture a culture of participation and enable the free flow of information. In doing so, they must also address each group’s concerns about data sharing and ensure a mechanism to maintain data integrity.

Motivating and motivating individual teams to work together, fostering a culture of open data sharing and data standardization is fundamental to the adoption of enterprise-wide data communications. These initiatives solve data silos, inspire positive cultural change, turn the wheel of innovation, teamwork, and interdisciplinary efforts, and foster higher leadership collaboration.

Awareness of administrations about the dangers of silos

Usually, different departments work in isolation, even while supporting each other to serve a common goal. Companies need to work as a unit to improve the available data sets and improve team spirit, productivity and quality of output. While information sharing at the enterprise level is key to increasing productivity and creating new opportunities, data silos present a barrier to information access, impairing overall operational efficiency.

Operational inefficiencies can make it difficult to discover hidden opportunities. Thus, educating departments about how data silos threaten organizational success is critical to changing the overall data approach. It is essential to communicate with teams about the benefits of collaboration and the negative effects of silos. Promoting information sharing, task transparency, and cross-functional collaboration breaks down barriers.

Leaders should encourage team managers to prioritize addressing silos and directing the entire organization to ensure a shift in perspective. The workforce needs to understand the basics of data silos and what can be done to fix them. They should be aware of the data quality problems that result from silos. To bridge the knowledge gap, organizations must communicate the benefits of data sharing and data integration, allowing the workforce to better understand the shift.

Evaluate the reasons behind the construction of the silo

If the challenge of the data silo continues, it begins to evolve organically, once again reflecting the culture of organizational work. The foundation setup itself allows silos to be established over time. It happens when each department collects and aggregates its own data sets, each with its own guidelines, metrics, and goals.

Teams working in different departments are developing their own way of getting things done or processing data in the ways that best suit their requirements. These practices lead to the gradual accumulation of silos.

The culture of working separately in different groups exacerbates the problem of silos. Besides this, the technology and data management systems They often vary from department to department, and include tools such as spreadsheets, accounting software, or CRM. Besides, most legacy systems cannot handle information sharing as each solution stores and analyzes data in different ways, naturally paving the way for silos to grow over time.

Data needs constant care and a systematic solution to easily manage and prevent silos build-up. In addition, the best technologies that companies have acquired can generate unintended data warehouses as well. Companies that need specialized technology should keep an eye on this aspect.

Create multidisciplinary teams to supervise

Businesses around the world are now centralizing data and sharing accurate versions of data to save time and lower costs. An enterprise-wide data glossary can be created to provide comprehensive guidance on the usefulness and storage of data. These data definitions provide multidisciplinary teams with pointers on how to understand data, create shared storage, and curb data warehouses.

Organizations need to upgrade their digital technology to keep pace with the changing nature of data.

They need to maintain and evaluate data standards across internal and external ecosystems. It is important to note that by default putting all the data in one system will not produce the desired result. Thus, it is imperative for companies to create cross-functional teams to drive the data integration agenda forward.

Each step should be towards consolidating data for the entire organization, including different departments, to avoid re-creating a new set of silos. It is critical to incorporate data discipline into all departments and convey vigilance about the innate dynamic nature of data.

Create a roadmap for smooth silo removal

With the advent of cloud technology, centralizing data for analysis has become easier and faster. Cloud-based tools streamline the process of collecting data in a shared pool, since tasks that used to take months and years to complete now take days and hours.

The roadmap for removing data warehouses should include finding a way to centralize data. A central data warehouse optimized for efficient analysis is the key to finding solutions for data silos. The next thing is to integrate the data properly and effectively to prevent data silos in the future.

Organizations can integrate data using several methods such as scripting using scripts including SQLAnd the Python, or other languages ​​for transferring data from isolated data sources to a data warehouse. On-premises ETL tools can also automate the transfer of data from different sources to the data store.

Cloud-based ETL is a complex, cloud-enabled process that is faster and easier. The process makes use of the cloud provider’s infrastructure, and works efficiently in any environment. ETL Tools It provides methods for collecting data from various sources in a central location for analysis and removal of silos.

It also solves data integrity problems by ensuring that new data is available to everyone. Data centralization integrates access to and control of data using a file Data Governance Framework.

Connected data improves digital transformation

Data warehouses negatively impact productivity, insights, and collaboration. But they can cease to be a source of problems when data is centralized and optimized for processing and analysis. When an organization understands the value of having a single golden repository of data, it inherently changes the culture.

Digital transformation cannot really happen in an organization without first solving the problem of data silos. Solving this problem requires multiple levels of effort, including changing the culture, assessing short and long-term tasks, creating multidisciplinary groups, understanding the data, and a plan to make it run smoothly. .

While this may seem like a daunting task, going beyond collecting and evaluating data to solve the problem of data silos is fundamental to the success of any digital transformation journey. It starts as organizations migrate to a more proactive approach to harness the value of connected data.

Featured Image Credits: Provided by the author; stock struggle; Thank you!

Dietmar Rich

Dietmar Rich

Dietmar Rich is the CEO of Pemcore. A serial entrepreneur with a strong sense of innovation, technology and digital transformation. He is a passionate entrepreneur who has been designing and delivering exciting digital projects for over 20 years.



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