How Siloed Data is Impacting Enterprise Market Share and Long Term Profitability

In today’s market, it is not uncommon for enterprise-level organizations with siloed data to use more than 500 applications for diverse business purposes. What began as harmless requests by multiple departments and divisions for applications to help with very discreet business problems has become a monster that is causing strategic impact to many global companies.

How?

As each department or division implements a unique application and defends its value, they make calculations with the data, and utilize measures and outputs for their respective needs. But these diverse data sets with unique calculations spread throughout the enterprise makes it almost impossible for the executive team to ever get a complete strategic picture of real time market realities.

Siloed data also drives internal defensive wars that often lead to a substantial waste of time, elevated unproductive political battles, and turn attention internally instead of the attention needed on external market dynamics.

The reason for this emerging waste is many enterprises lack the technology to harness that single view of all the critical enterprise data that can lead to fact-based business decisions.

If senior management can’t harness a complete view of the core activities in the market related to inventory, competition, trade & promotion spending and other critical business dimensions, they can’t quickly identify emerging problems and make decisions now that will preserve or sustain profitable growth.

The first step is establishing an integrated knowledge center that taps the data from every key silo within the company. This requires a technology framework that not only can access the data silos but bring that diverse pool of data into formats, queries and structure that are accurate, and consistent for anyone examining the data for critical corporate decisions.

Next, care must be taken to ensure that calculations applied to the data are consistent so the outputs are transparent to all levels of management.

When real market activities can be quickly harnessed, made available to all levels of management, and not be held captive by the IT department, then broad market assessments can be made, unique problems can be identified, a deeper examination can quickly occur leading to insights and actions.

This empowerment is what drives the vision behind performance management. When lower managers are empowered to evaluate market data, make decisions and track results, then behavior adapts to market conditions and former siloed data becomes the fuel for future growth, long term profitability and enterprise value creation.

This was the vision of thought leader, Guy Amisano of Salient Management who introduced the first empowerment platform called Margin Minder to the market more than 25 years ago, and continues to drive results for manufacturers, distributors and retailers today.

The message, need, and value hasn’t changed over the years.

It is time for executive management teams to see the negative impacts of siloed data and harness technology that can deliver a consistent vision of real market conditions, do away with the worthless defensive, time wasting antics among corporate departments and begin to look outward to an integrated view of the market so that rapid and effective decisions can be made that drive measurable results.

Karl Edmunds

About the Author


Vice President, Salient Management Company

is a nationally recognized business leader and author with more than 20 years of experience working with suppliers, distributors, and retailers in the CPG industry. His focus is aligning technical solutions with sales, marketing, and organizational needs to drive long-term profitable growth.

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