What are the problems caused by information silos?
What will be an ideal response?
As organizations grow, information silos will eventually lead to duplication of data and
cause potentially serious problems. First, data are duplicated because each application has its
own database. Next, when applications are isolated, business processes are disjointed. A
consequence of such disjointed systems is the lack of integrated enterprise information. This
leads to the fourth consequence: inefficiency. When using isolated functional applications,
decisions are made in isolation. Without integration, the left hand of the organization doesn't
know what the right hand of the organization is doing. Finally, information silos can result in
increased cost for the organization. Duplicated data, disjointed systems, limited information, and
inefficiencies all mean higher costs.
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