Information silo

An information silo, or a group of such silos, is an insular management system in which one information
system or subsystem is incapable of reciprocal operation with others that are, or should be, related. Thus
information is not adequately shared but rather remains sequestered within each system or subsystem,
figuratively trapped within a container like grain is trapped within a silo: there may be much of it, and it
may be stacked quite high and freely available within those limits, but it has no effect outside those limits.
Such data silos are proving to be an obstacle for businesses wishing to use data mining to make productive
use of their data.

Information silos occur whenever a data system is incompatible or

not integrated with other data systems. This incompatibility may
occur in the technical architecture, in the application architecture, or
in the data architecture of any data system. However, since it has
been shown that established data modeling methods are the root
cause of the data integration problem,[1] most data systems are at
least incompatible in the data architecture layer.

In organizations Typical information silos in a

hierarchic structured organization

In understanding organizational behaviour, the term silo

mentality[2] often refers to a mindset which creates and maintains information silos within an organization.
A silo mentality is created by the divergent goals of different organizational units: it is defined by the
Business Dictionary as "a mindset present when certain departments or sectors do not wish to share
information with others in the same company".[3] It can also be described as a variant of the principal–agent
problem.

A silo mentality primarily occurs in larger organizations and can lead to poorer performance and has a
negative impact on the corporate culture. Silo mentalities can be countered by the introduction of shared
goals, the increase of internal networking activities and the flattening of hierarchies.[4]

Predictors for the occurrence of silos are

Number of employees
Number of organizational units within the whole organization
Degree of specialization
Number of different incentive mechanisms.

Gleeson and Rozo suggest that

 The silo mindset does not appear accidentally ... more often than not, silos are the result of a
conflicted leadership team  ... A unified leadership team will encourage trust, create
empowerment, and break managers out of their "my department" mentality and into the "our
organization" mentality.[3]

Etymology
The term functional silo syndrome was coined in 1988 by Phil S. Ensor (1931–2018) who worked in
organizational development and employee relations for Goodyear Tire and Rubber Company and Eaton
Corporation, and as a consultant. "Silo" and "stovepipe" (as in "stovepipe organization" and "stovepipe
system") are now used interchangeably and applied broadly. Phil Ensor's use of the term "silo" reflects his
rural Illinois origins and the many grain silos he would pass on return visits as he contemplated the
challenges of the modern organizations with which he worked.[5][6][7][8]

See also
Bounded rationality – Making of satisfactory, not optimal, decisions
Business process interoperability – state that exists when a business process can meet a
specific objective automatically utilizing essential human labor only
Closed platform – System where a single company controls an entire ecosystem (also called
walled garden or closed ecosystem)
Data architecture – framework for organizing and defining the interrelationships of data in
support of an organization's missions, functions, goals, objectives, and strategies
Data integration – Combining data from different sources and providing a unified view
Data warehouse – Centralized storage of knowledge
Disparate system – Data processing system without interaction with other computer data
processing systems
Filter bubble – Intellectual isolation involving search engines
Enterprise application integration – use of software and computer systems architectural
principles to integrate a set of enterprise computer applications
Islands of automation
Metadata publishing

References
1. "Incompatible Data Silos" (https://maxxphase.com/data-compatibility/top-benefits/data-silo-el
imination/). Retrieved 2018-02-19.
2. Halas, Michal (2020-04-05). "Bajka o 2 silosach - TRIZ - Baza Wiedzy, Szkolenia, Warsztaty,
Wdrożenia Feed" (https://www.triz.oditk.pl/strefa-wiedzy/opinie/bajka-o-dwoch-silosach).
TRIZ (in Polish). ODITK. Retrieved 2021-06-04.
3. Quoted in Gleeson, B.; Rozo, M. (2 October 2013). "The Silo Mentality: How To Break Down
The Barriers" (https://www.forbes.com/sites/brentgleeson/2013/10/02/the-silo-mentality-how-
to-break-down-the-barriers/). Forbes. Retrieved 20 November 2020.
4. "Silo mentality in companies" (https://web.archive.org/web/20161005230416/https://www.roti
ze.com/silo-mentality/). Rotize. Archived from the original (https://www.rotize.com/silo-mental
ity/) on 2016-10-05. Retrieved 2016-05-26.
5. Ensor, Phil (Spring 1988). "The Functional Silo Syndrome" (http://www.ame.org/sites/default/
files/documents/88q1a3.pdf) (PDF). AME Target: 16. Retrieved 2013-10-19.
 6. AME Study Group on Functional Organization (Summer 1988). "Organizational Renewal –
Tearing Down the Functional Silos" (http://www.ame.org/sites/default/files/target_articles/88q
2a1.pdf) (PDF). AME Target: 4-16. Retrieved 2013-10-19.
7. Pullin, James (Winter 1989). "Breaking Down the Functional Silos: Motorola Paging
Division "Bandit" Plant" (http://www.ame.org/sites/default/files/documents/89Q4A5.pdf)
(PDF). AME Target. Retrieved 2013-10-19.
8. Zimmer, Benjamin (2006-03-27). "Of Silos and Stovepipes" (http://itre.cis.upenn.edu/~myl/la
nguagelog/archives/002964.html). Language Log. University of Pennsylvania. Retrieved
2013-10-19.

External links
The silo effect in business (https://web.archive.org/web/20120601005717/http://www.camag
azine.com/archives/print-edition/2002/march/columns/camagazine23400.aspx)

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