Reflecting on IT / business silos

By | January 9, 2010, 9:32pm PST

This photo sparked my thinking regarding silos and the so-called gap between IT and lines of business.

The notion that IT and the business speak different languages is such a well-worn cliché that it’s almost unbearable to discuss. Nonetheless, perhaps the cliché is so worn precisely because it expresses a common truth with which we are all familiar.

In this metaphorical representation of information silos, there is a small bridge at the top signifying some communication happening at the most senior level in an organization. Aside from that, the two business units just do not talk.

Does this scenario ring true for you? Please share your experiences with information silos and IT / business alignment.

[Photo by Michael Krigsman.]

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Michael Krigsman is a recognized authority on the causes and prevention of IT failures.

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Michael Krigsman

Michael Krigsman writes and speaks about technology in a manner that most observers consider to be fair and balanced. Michael believes that writing about IT failures, which often have complex causes, creates a unique obligation to be reasonable and accurate in both reporting and analysis.

Michael maintains active personal and professional relationships with enterprise technology buyers, vendors, analyst firms (or individual analysts), consultants, and system integrators. As CEO of Asuret, Michael sells and delivers paid services to members of these same groups.

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Biography

Michael Krigsman

Michael Krigsman is CEO of Asuret, Inc., a consulting company dedicated to reducing technology implementation failures. Asuret's suite of software tools improve the success rate of enterprise software deployments by quantifying and measuring governance issues that cause most project failures. Michael led the research effort underlying Asuret's model of collective intelligence and its practical application to reducing IT failures in consulting environments. He is a recognized authority on the causes and prevention of IT failures and is frequently quoted in the press on IT project and related CIO issues. He is considered an enterprise software industry "influencer" and provides advice to technology buyers, vendors, and services firms.

Previously, Michael served as CEO of Cambridge Publications, which develops tools and processes for software implementations and related business practice automation projects. Michael has been involved with hundreds of software development projects, for companies ranging from small startups to Fortune 500 organizations. Michael graduated with an M.B.A. from Boston University and a B.A. from Bard College. He is a Board member of the America's Cup Hall of Fame and the Herreshoff Marine Museum in Bristol, RI.

Talkback Most Recent of 7 Talkback(s)

  • Also the ground at the bottom...
    There's also the ground at the bottom of the silos
    connecting them. I think communication happens there as
    well in many cases.

    Silos emerge because communication is a O(n^2) problem.
    No business for more than a few people could survive if it
    didn't divide and conquer. Increasing the communication
    between silos usually involves creating lots of liaison type
    positions, which will mostly be seen seen as fat to be cut
    when times get tough.

    Silos are kind of like a greedy algorithm. You trade a
    suboptimal solution for one that can be cheaply computed.
    They won't really be broken down until someone has a
    sub-linear way to scale organizations that works in the
    general case.
    ZDNet Gravatar
    Erik Engbrecht
    10th Jan 2010
  • Even worse
    Communication between any two parties in a
    group scales is an O(n^2) issue, but that is
    just for starters. This is because everyone in
    the company can talk with anyone else. If we
    have groups of three people, we can have n(n-
    1)(n-2)=n!/(n-3!) combinations, for each
    combination, we have 3 potential speakers and 3
    groups of listeners. By induction, you can see
    that we have n^a groups (where a is the group
    size.) Within each group, there are a! pairs
    of communicators.

    I believe that this moves us to an exponential,
    as in exp(n), time dependence. Not the
    marketing-speak 'exponential' meaning "rapidly
    growing in some way we don't understand". This
    is no longer a problem solvable in 'polynomial
    time'.
    ZDNet Gravatar
    shis-ka-bob
    11th Jan 2010
  • Management have lost the plot.
    We have been living through of "bean counters", where theoretical good practice (ITIL), accountability (SLAs), performance (number of incidents resolved), all seasoned with political correctness, equal opportunities and other things have totally distracted managers from what they SHOULD be doing. And managers on the Business side and the IT side are equally guilty.
    "IT" is a silly term now. Obviously one would use computers and technology. So drop the T, and we become the Information Department. This gives a clue to what the Head of IT SHOULD be doing. The management should be advising the business on what Information we hold, and how it could be be made available and leveraged.
    When was the last time your IT Manager took that approach? A very long time ago, I bet?
    Information is the sum total of all the data in an organisation. That data should be regarded as the most valuable asset after the employees, and it should be cared for and nurtured. This means weeding and archiving, capacity management and planning, and investing in better forms of storage, and in code that can extract and re-align data into the most useful combinations.
    THAT is what the management on both sides should be working on.
    ZDNet Gravatar
    peter_erskine@...
    10th Jan 2010
  • And IT happens in a silo, a barn, a field, and a flower garden...
    I love the photo!

    I wish it were that simple. Often, the IT silo is shorter, and is connected to the upper middle of the business silo. And there are multiple business silos. The value stream is a garden hose running from one silo to the next.

    Words shape our thinking.

    One of the fundamental problems IMO is the use of the single acronym "IT" to encompass things as diverse as:

    1. Infrastructure (servers and routers and switches and desktops/laptops/smartphones), to

    2. Purchased/licensed general-utility applications used inside the walls to do the usual stuff, to

    3. Transactional systems that cross business boundaries up- and down-stream, to

    4. Consumer-facing websites and business-intelligence systems

    This isn't my idea--I first read about it 10 years ago in "Leveraging the New Infrastructure." The dimensions of IT have different cost structures and yield value in different ways. They range from totally indifferent to the nature of the business they serve to joined at the brain and heart. Projects to implement them require completely different teams and have completely different risk profiles and predictability. The same can be said for "maintaining" them.

    IT leadership may not even recognize and account for the diversity in how they need to "do IT." What chance do people outside have?.

    I've written about this at http://wistechnology.com/articles/5105/ and on my website http://www.ufunctional.com.
    ZDNet Gravatar
    uFunctional
    10th Jan 2010
  • ZDNet Blogger

    Many shapes, sizes, and forms
    You are certainly correct in saying there are many different variants of this problem.

    I actually have quite a few silo photos showing different degrees of interaction, so we are definitely on the same page.
    ZDNet Gravatar
    mkrigsman@...
    10th Jan 2010
  • Sileage
    I see it every day with our customers. Our goal as an organization is to try to facilitate more communication. While there is the Staff/IT silo gap, I most often see it across departments. What really kills me is to go to a place and the marketing department is isolated from the rest of the company. You know, the data where they could be getting their success metrics from.

    It happens in many other iterations as well. I think there are a lot of products to help out with this, but the number one thing is to foster an environment of communication, as you can have the world's best ERP or Database, but if the users don't use it than the silos will remain.

    Garry
    ZDNet Gravatar
    gpolmateer@...
    11th Jan 2010
  • RE: Reflecting on IT / business silos
    As people and organizations focus more on the cross-cutting processes that generate the greatest value, artificial barriers that create a segmented, or siloed, understanding of roles, information and systems are also breaking down.

    There are still many organizations and systems that are deeply siloed. However, as technologies like Enterprise Architecture and Business Process Management software have become widely recognized as mission-critical, we are finding that these silos are easier to break down than we once thought.

    For example, Enterprise Architecture models enable business and IT to speak a common language?bridging the communication gap. These models?which require the skills of IT, yet cannot be created without the insight of business?provide IT with a better understanding of business, and business with a vehicle to communicate effectively with IT.

    Business Process Management, too, enables business and IT to better communicate and collaborate on the day to day execution of the enterprise by enabling business users to take ownership of their processes, suggest or even implement changes, and ?do? technology while experiencing first-hand the agility and productivity created by the investment.

    Furthermore, the ubiquity and velocity of e-mail and now social computing is helping to break down barriers even faster.

    It?s a very exciting time. These technologies are coming together to create an environment where silos are a thing of the past?and perhaps to prove to us that business and IT are not so different after all.

    -Greg Carter
    Chief Technology Officer & VP of Development at Metastorm, inc.
    ZDNet Gravatar
    greg.carter
    11th Jan 2010

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