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October 06, 2021

3 Ways to Break Down Data Silos in Your Small Business



Just because your business isn’t a large enterprise doesn’t mean data silos don’t exist in the organization. Data silos happen when different departments or employees don’t have access to the same information. Another way silos occur is when the data differs between functional areas or individuals.



For example, the billing department maintains customer information in a database that’s updated from constant client interactions. However, your marketing person is looking at customer data from a CRM application that’s maintained separately. The data never syncs, causing problems with targeted outreach and advertising campaign efforts.

This shows how data silos can damage your company’s reputation and relationships. Employees can start to mistrust each other, and customers wonder about your organization’s professionalism and competence. To get rid of data silos in your small business, it’s best to look at how they start. Silos are usually due to problems with technology, processes, and organizational culture.

1. Centralize Your Data

Sometimes data silos begin because of the technology an organization is using. A business can start out with one tech tool or application for storing data. But as a company grows and adds more staff, each person can develop tunnel vision.

They know what they have to do to accomplish their jobs and what information they need. However, they’re not necessarily thinking about how their roles and the data they work with impact others. It’s more common than you think for a company to end up with multiple applications that serve the same purpose.     

As departments grow, it’s also typical for staff to interact with more than one tool that does the same thing. Employees can duplicate their efforts by manually entering information into more than one database. Without historical context, new staff may rely on outdated information in an application or database that’s never been retired.

Software solutions that centralize your information, such as an iPaaS, eliminate many of these issues. Integration platform as a service software ensures the data across different platforms is consistent. If you have a database in a legacy application and another in the cloud, the information will finally match up.

Within the iPaaS software, you can set up data flows or maps between applications. Using the previous example, when billing enters in new customer information, it will also update in marketing’s CRM app. The iPaaS can also help correct inconsistencies in your company’s data, improving the employee and customer experience. 

2. Implement Comprehensive Data Policies

The majority of organizations lack solid policies and procedures around data. Research conducted by Garner in 2018 revealed 87% of organizations rank low in terms of business intelligence and analytics maturity. Data silos are more prevalent in businesses without solid data governance.

You can build a more thorough data strategy and set of policies by first completing an audit. Look at how your company uses data and how each employee uses it differently. During this process, you might also find ways that your business can use information better or opportunities you’re missing.

As you examine the ways your team members employ data, also look for ways they can collaborate. Some employees could be hitting roadblocks in getting access to the data they need. This could be related to a lack of appropriate procedures or knowledge of how to exchange information. In other cases, it might be due to insufficient tools and resources.

Besides figuring out how data can best flow within your organization, you’ll also want to examine things from the customer perspective. Take the steps your clients would use to purchase products or services. See how they reach out to receive service and whether there are holes in the process.

Robust data governance policies contain clear structures and rule-based steps. Your policies should also establish ownership for each of these. It’s idealistic to assume collaboration between employees will naturally form within your organization. Your staff needs guidance and direction, in addition to resources to fall back on.

3. Encourage a Teamwork-Oriented Culture

Silos aren’t necessarily created by a competitive culture, but they can become a symptom of one. When employees feel they have to compete against or outdo each other, they can hoard information. Some team members may not disclose or share critical data on purpose. In other cases, they might make it difficult for employees to request information or get their hands on accurate data.

Competitive cultures encourage or sanction this type of behavior because they’re based on fear. Some employees can feel threatened by others and use data to justify their positions. Others can do this to sabotage the work and reputations of co-workers.

Even in cultures that aren’t hyper-competitive, data silos can pop up if the company does not encourage cross-communication. Some leaders prefer to use a carrot-and-stick system. They reward behaviors they want to see (e.g., information exchange) and take corrective action with employees who exhibit unwanted actions (e.g., knowledge hoarding).

Other leaders use a system that exclusively focuses on demonstrating and rewarding desired behaviors. One way to do this is through a consensus-based process and democratization. Get all your employees involved in the decision-making process. Hold sessions that encourage them to express what’s not working and what the company can build on.

Challenge your team to identify recommendations for new technologies and processes. From the beginning, they’ll see what collaboration looks like and the results it can produce. Make a list of the ideas and contributions your company wants to move forward with. And have your team hold each other accountable for following through with action items.

Conclusion

On the surface, data silos may not seem like a big deal. Employees don’t share the same responsibilities, so why shouldn’t some have access to tools and data others don’t? But over time, data silos can create obstacles for your team, clients, and organization. People can’t deliver high-quality results if they’re relying on inaccurate, incomplete, or outdated information.

They also can’t see the big picture if pieces of data are missing or inaccessible. Breaking down data silos in your small business before they become too ingrained in your culture can prevent future problems. Take the time now to invest in centralized technology, detailed processes, and a culture of teamwork.                   



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