What Are Data Silos And What Problems Do They Cause?

How data silos occur

A department or end user might go rogue and create a data silo even in an organization that has solid data management processes. More often, though, data silos are a consequence of how organizations are structured and managed as a whole, including their IT operations. The following factors commonly cause silos to occur:

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What is data architecture? A data management blueprint

• Which also includes:
• 5 principles of a well-designed data architecture
• Data modeling vs. data architecture: What's the difference?
• Data architecture vs. information architecture: How they differ

• IT strategy and technology deployments. Some organizations have decentralized IT buying decisions and allow departments and business units to purchase technologies on their own. This often leads to the deployment of databases and business applications that aren't compatible with or connected to other systems. The same thing can happen when corporate IT teams are involved in purchasing decisions if a department needs a particular technology. The variety of data platforms now available also helps drive data silos. In addition to mainstream relational databases, organizations can deploy big data platforms, NoSQL databases, cloud object storage services and special-purpose databases to meet different business needs.
• Organizational structure and management. Data silos regularly occur when business units are fully decentralized and managed as separate entities. That's most common in large organizations with different subsidiaries and operating companies, but it can happen in smaller organizations with a similar structure and management approach.
• Corporate culture and principles. Even when IT and business operations are managed in a more unified way, company culture can spur the creation of data silos. There are fewer incentives to avoid them if data sharing isn't a cultural norm and an organization doesn't have common goals and principles for managing data. Departments might also view their data as an asset they own and control, further encouraging data silo development.
• Business growth and acquisitions. Growing organizations are prone to data silos. As a company expands, new business needs must be addressed quickly and additional business units can be created. Both of those situations are natural data silo incubators. Mergers and acquisitions also bring silos into an organization, some known and some that are hidden.