Most businesses are not data-rich – they are dataconnected. Sales data exists in disconnected systems from operations and finance, and those systems are governed by different people, using sometimes different definitions for the same metrics. Digital integration is the process of binding these systems into a fully connected enterprise, in which the view from any one team reflects the totality of the business.
The Real Cost of Silos
Disconnected systems cause both inefficiencies and conflicting decision-making. While the former are more obviously expensive, it is the latter that is more insidiously costly to the business. Integration is the solution to both, although to differing degrees. Inefficiency is the more obvious cost of systems that do not share data or operate from a common data source. Manual processes around shared data and the creation of redundant data sets to satisfy the informational needs of different teams is a drag on productivity. But the higher cost is the potential for divergent strategic and tactical decision-making based on different data sets, even when teams are working towards common objectives.
A common example is sales operating from a pipeline forecast that does not account for production capabilities, which operations understands and incorporates into their plan. Sales commits customers based on the forecast, which operations is unable to deliver on. This causes friction between the two departments, but more importantly, potentially alienates customers who were not informed of the true delivery window. The integration of systems would prevent such a situation, in which decisions based on disconnected data sets cause rifts between teams and/or damage to the business.
What Connection Actually Requires
A connected enterprise requires more than just the ability to export data from one system to another. While such batch-processing is necessary, it is not sufficient for true integration. Systems need to operate from consistent data models, share data in real-time, and have clearly defined ownership of shared data for integration to be truly effective.
Consistent data models ensure that while teams may have unique needs and metrics, the underlying data that feeds into them is shared and operates from a common definition. Real-time data sharing is essential, since it allows teams to make decisions based on the latest information, which is critical for synchronization. Finally, integrated systems require clear ownership of shared data, to which there is a single source of truth that other systems can reference. Without these three pillars – a consistent data model, real-time data sharing, and clear ownership of shared data – systems remain technically connected, but operationally siloed.
Where to Start
It is rare that an enterprise will begin its digital transformation with a full-scale integration initiative. The value is too diffuse, the costs too high, and the timeline too long. It is much more effective to identify the silos that are most detrimental to the business and begin the process of integration there.
Like many aspects of digital transformation and AI/ML outlined in this ebook, it is better to create a few wins by targeting high-impact integration initiatives, rather than attempting to comprehensively integrate the enterprise and risk a lack of initial value leading to cancelled projects or stalled investment. The highest-impact areas to begin integrating are typically found between sales, operations, and finance, as these teams touch every aspect of the business and the costs of misalignment are high.
Sustaining Integration Over Time
A connected enterprise is not a one-time project – it requires an ongoing commitment to governance to sustain the value delivered. The nature of businesses is to constantly evolve – new systems are adopted, organizational structures change, and so too must integrated systems evolve to maintain value. Without dedicated resources to ensure the connection architecture is continuously updated, integrated systems slowly diverge, and the value they deliver erodes. Enterprises that sustain the value of a connected enterprise dedicate resources to maintaining the connection architecture. Governance of the connection architecture and shared data falls to a specific team within the enterprise in perpetuity, rather than being left to ad-hoc, inconsistently applied processes that lead to the same issues as before the initial connection was performed.
The MonoSpear Perspective
MonoSpear helps enterprises to accelerate their digital transformation by focusing on the areas in which the business is most hindered by disconnected systems – identifying the highest value integration opportunities. We recognize that while a full enterprise-scale connection initiative is desirable, it is rare that an enterprise has the bandwidth to pursue such a project, and thus we always target our efforts to the areas of highest need.
Our approach ensures a rapid realization of value after integration, which both demonstrates the value of further integration efforts and supports the ongoing commitment of resources to the process. We also ensure that the necessary governance is in place to continually update the connection architecture, rather than relying on ad-hoc processes to maintain the integrity of shared data between systems.
Integrating enterprise systems provides a much-needed context for teams to operate from and ensures that decisions made by one team are not rendered immediately moot by the actions of another. It is an essential component of any digital transformation and allows enterprises to achieve their strategic objectives. But it is also important to recognize that while integration is a vital step, it is rarely sufficient on its own.
FAQs
- What is a connected enterprise?
A connected enterprise has integrated systems across departments, allowing for a holistic view of the business rather than disparate, department-specific data sets.
2.What causes business silos?
Typically, disconnected systems, inconsistent data models across systems and departments, and unclear data ownership cause business silos. These factors develop gradually and, if left unaddressed, lead to information being inaccessible to other teams within the company.
3.Where should enterprises start when pursuing a connected enterprise?
Enterprises should initially focus on integration initiatives that reduce the most severe friction, which is typically between sales, operations, and finance, as these departments operate at the nexus of all business processes.
4.How does MonoSpear help break down business silos?
MonoSpear helps enterprises break down business silos by designing and implementing a connected enterprise architecture and supporting ongoing governance to ensure the value of the initial investment continues to be delivered.