Why breaking down legacy data silos is business-critical

The widespread adoption of powerful analytical tools and AI-based systems that can offer insights into everything from operational efficiency to consumer behaviour has had a clear positive impact on businesses worldwide. Yet, despite such advances, even the most forward-thinking companies are still likely to have data silos that are preventing them from performing to their full potential.

“It doesn’t matter whether you’re a startup or a large corporation – silos will exist if different departments inside your business store their data in separate locations,” says Mihai Cernei, CTO at Amdaris, a specialist in digital transformation. “As these disparate assets grow, so do your silos.” 

The existence of silos makes data analysis a far more time-consuming process than it needs to be. And, if similar material is being stored in numerous places, inconsistencies can easily creep in, jeopardising the quality of the information extracted.

IT specialists faced with a lack of joined-up platforms tend to devote more effort to data management than they might wish to. A 2020 Gartner survey of data professionals found that on average they were spending 56% of their working time on routine data management work. That meant they were spending only 22% of their time on more value-adding tasks such as data monetisation and the extraction of valuable insights.

Every company will have its own unique set of data consolidation problems to overcome. In Cernei’s experience, nearly every obstacle a business will face in its efforts to bring together fragmented data falls into one of three categories. First, it’s becoming increasingly difficult to find high-quality technical experts who can do this work. Second, the task of even accessing many legacy systems requires either bespoke software or new data connectors to be built. Third, and perhaps the most significant factor for companies looking to eliminate data silos, is that the process is likely to be expensive. 

“Some integration is costly and requires a lot of computer power,” says Cernei, although he adds that it’s “important to note that this isn’t true of every solution. Some can save you money.”

Chris Gorton is a senior vice-president at Syniti, a specialist in enterprise data management. He recommends that the first step any organisation should take when attempting to break down silos is to obtain a comprehensive understanding of exactly what data it wants to gain control over.

“Companies need to develop a plan to consolidate its information, harmonise duplicated material and ensure that it is of a high quality, so that can be trusted and used throughout the business,” Gorton says.

As data-synchronisation work can affect all parts of an enterprise, it’s vital that this plan factors in how all operations can keep running seamlessly as the process gets under way. 

Many business leaders are facing budget constraints that will require them to make hard choices about which projects need to be prioritised and which ones can be shelved until more funds are available.