Answer to Question 1
An information silo occurs when data is stored in isolated systems. The obvious way to
fix such a silo is to integrate the data into a single database and revise applications and business
processes to use that database. If that is not possible or practical, another remedy is to allow the
isolation, but to manage it to avoid problems.
Isolated data created by workgroup information systems can be integrated using enterprise-wide
applications. Isolated data created by information systems at the enterprise level can be
integrated into inter-enterprise systems using distributed applications that process data in a single
cloud database or that connect disparate, independent databases so that applications can process
those databases as if they were one database.
Answer to Question 2
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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