4 tips to dissolve data silos and promote collaboration company wide.

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Written by: Sarah Sherard, Marketing Content Specialist at PTC.

What are Data Silos?

If the word “silo” brings to mind the large, looming towers on farms that seal grain off from the rest of the world, you are not too far off from understanding what a data silo is. Although more abstract than farm silos, they are isolated repositories of data owned by one team that are inaccessible from the rest of the organization. The data are held in disparate systems that are often incompatible with other sets of data. This makes it difficult for teams across the organization to access other data and collaborate, thwarting the potential for a streamlined product lifecycle process.

Data Silos vs Information Silos

Information silos and data silos are sometimes used interchangeably, but there is a subtle difference. Where data silos are mainly a challenge with technology — data is inaccessible due to the incompatibility of systems — information silos are a more deliberate attempt to keep data isolated. Different teams may feel that data needs to remain within their silo due to a variety of reasons such as fear of security risk or belief that the information access is not useful.

What Are Some Primary Causes of Data Silos? Why Do They Occur?

Legacy IT Infrastructure

As technology evolves at unimaginable rates, some organizations are left behind with their traditional systems. Legacy IT infrastructure are outdated systems that lack connectivity and the ability to integrate with newer technologies. Companies will often rely on them because they’re familiar, convenient, customized or technically still work—so no need to fix them! Like a slow leaking pipe, the problems this infrastructure is causing often go unnoticed by manufacturers until it’s too late. In this case, these aging technologies have resulted in isolation and data silos between teams due to their disconnection.

Company Growth

Data silos can happen anywhere, but they commonly occur in large organizations that have gone through rapid growth or acquisitions. To prioritize efficient workflows through this growth, groups of people will naturally section off into specialized teams. The problem arises when these teams also develop their own form of data management due to the organization lacking a centralized platform. Soon, teams that need to communicate and share data across the product lifecycle are slowed down by their disparate systems.

Disadvantages of Data Silos

Duplicate Data Platforms and Processes

It may seem obvious, but teams across the product development process often share the same data. But when data sets are inaccessible and incompatible, teams will begin to duplicate them in their own systems. This not only stifles collaboration but risks teams having inconsistent, outdated, inaccurate data that creates issues for productivity down the line. Duplicated data also eats up valuable data storage, costing the organization the extra IT resources needed to hold them.

Less Collaboration Between End Users

If a design engineer and a manufacturing engineer are utilizing two different data management systems for their work processes, they inevitably hit a wall in collaboration when they need to begin sharing data. If the design engineer makes any changes, those changes won’t get communicated downstream, which would cause a litany of issues including lower product quality and slower time to market.

Productivity Plateaus

Isolated data will ultimately hinder productivity. Users in teams seeking data contained in another silo will need to seek, request, then be authorized to obtain that data before they can manage it. The bureaucratic nature of a simple task slows down productivity and eats into time that could be spent on utilizing the data.

Security and Compliance Risks

There is a high risk of data leaks and breaches when data management is left to individualized teams. Since the organization has no centralized system, there is no specialized team that can handle overarching security, and there is no established course of action for response to threats. Data silos also put the company in danger of failing to comply with data privacy and protection laws.

4 Ways to Break Down Data Silos

Consolidate Your Data Management Systems

To break down data silos, there needs to be a consolidation of the various data management systems in use. Considering the opinions of users is an opportunity to build a digital thread that people will feel positive about and benefit the organization as a whole.

Set a Governance Model for Data Collaboration

Establishing a data governance model will help to prevent any further data silos from cropping up again and can help promote collaboration. The framework outlines how data in your organization is collected, stored and utilized. The rules and processes ensure privacy and compliance, minimizing security risks as well.

Leverage Integration

Similar to consolidating the data management systems, it’s important to connect to other product development and business systems so that your entire ecosystem is working from the same up-to-date product information. No longer will users be burdened with redundant and error prone data entry tasks.

A Cultural Shift

If users across the organization are resistant to change and don’t want to move from their current systems, it will make the transition to a digital thread a challenge rather than an opportunity. This can be alleviated by involving them in the process. Garner employees’ opinions on what a consolidated data management system should look like. Once a solution is selected, be sure to provide the proper education and training on the new system.

Eliminating Data Silos with a Digital Thread

So, now that you know what a data silo is and the problems they cause, you’re probably wondering how to best break them down. Breaking down data silos must involve building a digital thread across the product lifecycle. A digital thread enables universal access to data, allowing for the consistency and collaboration needed. To achieve this, it’s important to establish PLM as the foundation of your digital thread in order to create a seamless flow of information between essential systems.

For example, Thingworks Navigate is a PLM tool that integrates data into a single platform, which makes transition to a digital thread simpler. Also, PTC’s PLM solution Windchill offers integration of systems from IoT to ERP.

Data silos kill productivity, introduce unnecessary errors, isolate users and put data privacy at risk. Building a PLM-enabled digital thread is crucial to allowing the democratization of data and greater collaboration between end users. Your organization can see benefits such as a streamlined workflow and increased product quality after breaking down data silos with a digital thread.   

To learn more, read the eBook “Real-Time Data Access: Taking the digital thread from concept to reality.”