How Can the ERP System Eliminate The Problem of Data Silos?

How Can the ERP System Eliminate The Problem of Data Silos?

Organisations have various departments, and every team holds certain information or data. When there is a collection of data isolated from others within the organisation, it creates a problem called data silos. It means there is a set of information that is accessible to only one team. There can be times when other departments might also require the same information, however, when it is not easily accessible, it can create a delay in the process.

When an enterprise is faced by data silos, it impacts the business negatively. Each department is assigned different responsibilities, which creates a communication gap between teams. But, the organisation must recognise how data silos might affect their company, and take necessary steps against the same.

How Data Silos Hamper the Growth of a Business?

Data silos might occur due to the company’s rigid structure and culture. It can also be a result of the various departments using different tools and software for completing their tasks. Many enterprises are working towards staying more connected by sharing data and incorporating software that stores all information in one place. This is because they have identified the problems that data silos can create for the company’s working system. Here is a list of problems faced by an organisation experiencing data silos.

Inconsistent data

There are times when the latest data or information is not updated. Also, there can be multiple versions of the same information, which creates confusion. Outdated or multiple versions of information can diminish the quality of reports and analytics.

Poor decision making

When teams do not have real-time and enough information, they end up making incorrect decisions. Their inaccurate analysis can be less insightful, thus misleading a team into making poor business strategies.

Limited access

Users must have a complete understanding of the business process. Data silos create a barrier and do not allow a user to have an overall view of the business. It becomes difficult for the user to identify opportunities and improve on strategising.

Lack of integration

Due to data silos the teams may not be able to integrate the various functions. The lack of integration prevents departments from pursuing common goals. The holding of data can also create distrust between the teams.


The delay in completing tasks, having inaccurate or outdated data, limited access, lack of coordination, etc. lead to inefficiency of the business. This directly impacts the productivity and growth of an organisation.

How Can ERP Solutions Eliminate Data Silos?

To eliminate data silos, businesses need to evaluate their company’s culture, structure, and workflow. It becomes important to have a collaborative environment for the business to gain new ideas and create better strategies. The key is to have open communication throughout various departments.

Integration of all information and data is possible with the new age Enterprise Resource Planning (ERP) systems. This software can hugely influence the way teams collaborate, and the way business processes are executed. Here’s how ERP software solutions can eliminate data silos:

Supports collaboration

To eliminate data silos, ERP software integrates different networks and applications into a single system. This ensures that users receive data quickly across all departments. The communication is streamlined, and there is a standard process established for the teams and the business.

Integrates all systems

ERP software proves to be the most effective solution to combat data silos because it provides system integration. With the synchronisation of information, teams can get their hands on real-time data whenever required. The users can effectively complete their tasks when they have all the necessary data at their disposal. System integration eliminates delays in work, increases productivity, and improves the efficacy of a business.

Creates a data warehouse

ERP software stores information from multiple resources in a single system. This is like a data warehouse that is beneficial for manufacturers, distributors, retailers, and the construction industry. Large data is collected and stored for maintaining records of the business transaction. When all the data is stored in a single system, the ERP software can generate reports and help a team to gain useful business insights. ERP software brings together various modules and integrates every system of the organisation together.

At SourcePro, we offer ERP solutions to small businesses as well as large organisations. Our solutions are tailor-made for businesses that need special assistance with resource management. Consult us to understand how ERP systems can be an excellent investment for your business.

× How can I help you?