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'Silos, for lack of a better word, are good'

By | May 25, 2010, 6:19pm PDT

Summary: Everyone complains about IT silos, but who complains about ‘evil’ sales silos?

“Silos, for lack of a better word, are good.”

That’s not the Gordon Gekko of IT speaking, it’s Hank Marquis, railing against the conventional wisdom that has been shaping service-oriented thinking for the past decade.

He makes an interesting point:

“Silos are the only way to manage increasingly complex concepts. Medicine, education, government and business all rely upon silos… It makes sense to develop staff, management and other systems based on the unique requirements of each….They usually have different systems, staff and needs. They are silos too. Yes, silos are everywhere, but you seldom hear experts complaining about ‘evil’ sales silos or intransigent transportation silos. Why the attack on IT organizations?”

We actually need IT silos, Hank believes. Many pundits and analysts and IT professionals have been denouncing IT silos for the wrong reason, he says. “The issue isn’t the presence or absence of silos. The issue is the lack of communication and coordination between them…. the real issue is lack of management.”

Hank hits upon something intriguing here. Silos have kept systems and processes within a manageable scale. And we’ve been trying to make services and data visible and usable to other parts of the enterprise. The challenge isn’t to tear down the silos, but rather to make them open and accessible to one another, through common standards and governance within your organization. And that takes a lot more time and good management, versus simply bulldozing them down.

(Photo credit: Wikipedia)

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Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

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Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

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Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts, and serves on the program committee for this year's SOA & Cloud Symposium in London. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

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RE: 'Silos, for lack of a better word, are good'
Odeomi13 30th May 2010
"The challenge isn?t to tear down the silos, but rather to make them open and accessible to one another"

I may be wrong but I think the moment you make a silo open and accessible to each other it is no longer a silo but a process model that can serve different part of the organization
Once you open and make them accessible to one another the silo is no longer a silo, it is now a node within a process. We can deal with the complexity of each node (the old Silo) in the process model, bearing in mind the contribution of other nodes(silos) e.g marketing database can retrieve information from the CRM for a marketing campaign as oppose to Silo model where marketing will spend money to acquire data that operation already acquired through its interaction with customer
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I thought that WAS the definition of silos
Roger Ramjet 26th May 2010
Organizations that do not communicate are silos. If they did communicate, they would be a matrix-like organization. But this gets to what I've said for years about the Balkanization and Gerrymandering of UNIX (i.e. Silos). Balkanization is the essence of not communicating (and being belligerent to each other). Gerrymandering is the degree each silo has political clout. A certain IT silo could have leading-edge technology and great best practices - and yet some other silo becomes prevalent because of politics.

B & G is the reason WHY silos are bad - and they are human constructs (i.e. they have nothing to do specifically with tech). If humans could stop the B & G attitudes, then silos might be a good idea (NOT).
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I have seen both as a vendor and as an internal employee that even commercial solutions that are adopted to replace IT silos, end up being IT silos. This is because the level of customization that goes into a commercial project is proportional to the size of the enterprise's information system. Hence, exactly what Hank was saying.
COTS(Commercially-Off-The-Shelf) solutions only exist for smaller organizations that can manage any workarounds that may arise with relatively little impact on the business.
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The problem is one of efficiency of managing an organization's resources vs. effectiveness of producing value for customers. IT departments exist to provide value to the business from technology. There are only two ways to deliver value through goods or through services. IT is in the services business. Once you decide how you are going to provide value and focus on providing that value, you then have to decide how to manage your organizational resources to maximize value and efficiency. These resources can be arranged in several ways. Each has its advantages and disadvantages. Creating value for customers must be the primary concern. Functional silos are "good or bad" relative to how efficiently and effectively they support value creation.
0 Votes
+ -
"The challenge isn?t to tear down the silos, but rather to make them open and accessible to one another"

I may be wrong but I think the moment you make a silo open and accessible to each other it is no longer a silo but a process model that can serve different part of the organization
Once you open and make them accessible to one another the silo is no longer a silo, it is now a node within a process. We can deal with the complexity of each node (the old Silo) in the process model, bearing in mind the contribution of other nodes(silos) e.g marketing database can retrieve information from the CRM for a marketing campaign as oppose to Silo model where marketing will spend money to acquire data that operation already acquired through its interaction with customer

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