Forbes stated recently that: “In 2025, enterprises face a critical challenge: breaking down operational silos while building scalable systems that can grow alongside their business. In the race toward digital transformation, the imperative for effective enterprise resource planning (ERP) customisation has never been more pressing.”*
What is meant by ‘breaking down silos’?
Breaking down silos is a process of limiting or removing the divisions between people or groups in an organisation. This process may alter both tangible and intangible barriers between them. When departments have a silo mentality, they don’t share information or resources with anyone outside their group.
What are the benefits of breaking down silos?
Improve collaboration
Breaking down silos can help teams work together towards a common goal.
Improve communication
Breaking down silos can help teams share information and resources more easily.
Improve company culture
Breaking down silos can help create a culture that values teamwork and open communication.
Gain competitive advantage
Breaking down silos can help companies stay competitive in a changing environment
And why the rush to break down silos?
Well, it’s been proven that 95% of businesses** achieve major improvements after using ERP through reducing process times, increasing collaboration, and centralising enterprise data. And a huge 50% of companies are soon looking to acquire and upgrade their systems. So it doesn’t seem to be a case of whether or not to implement a new ERP system; it’s how to do it correctly.
How can you break down Silos with ERP?
ERP systems are designed to integrate data sources, allowing you to use collaboration tools, and encourage cross-functional collaboration.
What does this mean?
Integrate data sources
- Integrate data sources across systems so that data can flow throughout the organization
- Implement data governance
- Adopt data analytics
Use collaboration tools Provide collaboration tools to teams and Implement collaboration software to increase team collaboration.
Encourage cross-functional communication
- Create cross-functional teams to bring together people with different backgrounds
- Encourage cross-collaboration between teams
- Encourage cross-functional training so team members understand how their work fits into the larger picture
- Facilitate open communication
Identify the problems silos are causing
- Identify the problems silos are causing, such as lost creativity
- Talk to a senior executive or mentor about issues they have noticed
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*https://www.forbes.com
**https://learn.g2.com/erp-statistics
