Data silos can be a significant obstacle for businesses, leading to inefficiencies and poor decision-making. Businesses incur an average loss of $9.7 million annually due to poor-quality data caused by data silos. Microsoft Dynamics 365 Business Central can be a powerful tool for eliminating data silos and improving overall business performance.
These silos can significantly hinder an organization’s efficiency and effectiveness. For managed service providers (MSPs), helping clients overcome these silos is crucial for enhancing their digital presence and operational effectiveness.Understanding why data silos exist is crucial for effectively breaking them down. According to a survey by Salesforce, 81% of IT leaders cited data siloing as a significant barrier to their digital transformation initiatives, highlighting the widespread nature of this problem.
What is a data silo?
Data silos happen when companies store their data in isolated systems or departments, making it difficult to access and integrate. Although some data may need to be isolated for security and clearance level reasons, a large subset of any company’s internal data isn’t sensitive enough to be siloed.
These silos often form due to a lack of communication between departments and old or disjointed systems. Data silos reduce transparency and efficiency. Companies need one standard policy that governs all departments and storage needs. A unified data management strategy is paramount as storage needs get more complex. MSPs can help their clients unlock valuable insights and improve performance by addressing data silos.
How data silos hinder business growth for SMBs
Data silos create multiple challenges for your MSP clients. Addressing them with the right ERP solution saves them money and helps you retain them as a client when their contract comes up for renewal. SMBs in a variety of industries from manufacturing to e-commerce can benefit from an ERP solution.
These are just some of the challenges that data silos cause:
Hindered collaboration
Because data silos obstruct communication and information exchange, they seriously impair organizational collaboration. Teams find it difficult to obtain the knowledge they require to function efficiently when data is kept in separate departments or systems. In addition to decreasing productivity, this fragmentation raises the possibility of mistakes and inconsistencies in the data being used.
Slower and less informed decision-making
Data silos decrease accuracy and efficiency as information is out-of-date or inaccurate. This makes it hard for decision makers to draw effective conclusions or operate with incomplete data. Trend analysis and correlative analysis is difficult when data is not easily accessible or integrated. This makes it harder for a client to react quickly to shifts in the market, client demands and new opportunities.
Duplication of effort
When there isn’t clear visibility of an organization’s data, teams may end up working on the same projects without knowing it. This leads to redundancies and duplication of effort as it’s hard to coordinate activities and achieve common goals, leading to project delays and missed innovation opportunities. ERPs like Business Central solve this issue by creating open and transparent data sharing in one centralized place.
Increased operational costs
Data silos can lead to increased IT and maintenance costs. Managing multiple isolated systems requires more resources and personnel. Each system may need its own set of updates and support. These can quickly add up. Integrating data from disparate systems is also complex and needs additional investments in data integration tools and services.
Benefits of integrating data with Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 Business Central offers a comprehensive solution to overcome the challenges caused by siloed data. Integrating various data sources provides a unified view of business operations. Key features such as real-time data access and advanced analytics streamline processes and improve decision-making.
Business Central gathers data from all company departments and stores it in a centralized and accessible database. This helps employees be more efficient and make better decisions. Meanwhile, business owners have an at-a-glance 360-degree view of the company’s operations. This helps clients recognize and implement solutions to increase productivity and revenue.
Unified view of business operations
With Business Central, a client’s entire operation can be housed under one centralized system. This lets leadership make decisions at-a-glance with the confidence that they have all the right data to pull from that’s updated in real time. Clients can monitor key performance indicators (KPIs), track progress and identify areas for improvement more effectively.
Real-time data access
One of the key benefits of Microsoft Business Central is real-time data access. This feature allows clients to access the most current information any time anywhere. Your clients can respond more quickly to market changes and emerging opportunities.
Automated Workflows
Microsoft Business Central offers automated workflows that streamline business processes and decrease manual work, freeing up time to focus on more strategic activities. Automated workflows ensure consistency and accuracy in business operations. In other words, it reduces the likelihood of human errors. MSPs can leverage this feature to enhance their clients’ operational efficiency.
Advanced Analytics
Advanced analytics is another significant benefit of integrating data with Business Central. The platform provides powerful analytical tools that enable clients to gain deeper insights into their business performance. Clients can identify opportunities in their data, spot and reverse downward trends quickly, and explore unexpected correlations.
AI-Powered Capabilities
Business Central includes AI-powered tools that enhance decision-making and operational efficiency. AI features such as Sales and Inventory Forecasting, Late Payment Predictions and Cash Flow Analysis help clients anticipate business challenges and make proactive decisions.
Enhanced Collaboration
Integrating data with Microsoft Business Central enhances collaboration across departments and teams. By breaking down data silos, everyone in an organization can work better together as they’re speaking from the same source of truth as opposed to their respective isolated systems. For MSPs, this means their clients can get all business functions working harmoniously within their organizations, ultimately leading to better business outcomes.
Improved Data Quality
Data quality is crucial for effective decision-making and business operations. Microsoft Dynamics 365 Business Central helps improve data quality by providing data validation and enrichment tools. Clients can make more reliable decisions and avoid costly mistakes by ensuring that data is accurate, complete and consistent.
Scalability and Flexibility
Microsoft Business Central is a scalable and flexible solution that can grow with clients’ businesses. The platform can easily accommodate increasing data volumes and evolving business needs. Clients can customize and extend the platform to meet their requirements, ensuring it remains relevant and practical as their business evolves. For MSPs, this means that they can offer a future-proof solution to their clients, providing long-term value and support.
Integration with Other Microsoft Tools
Microsoft Business Central integrates with other Microsoft tools, such as Office 365 and Azure. This integration further streamlines operations by allowing clients to use familiar tools and interfaces and pull data across the Microsoft ecosystem. It reduces the need to switch between applications, saving time and reducing friction. MSPs can leverage this integration to offer their clients a comprehensive and cohesive solution.
Steps to help MSP clients overcome data silos
MSPs can follow a structured approach to help their clients deal with data silos:
- Assess the current state of data management to identify existing silos and integration opportunities.
- Identify key data sources and integration points to ensure all relevant information is included.
- Develop a data integration strategy that outlines the steps and technologies needed for successful integration.
- Implement MS Business Central and integrate the identified data sources.
- Monitor and optimize data integration processes to maintain data quality and address any issues promptly.
Best practices for data integration
Successful data integration requires adhering to best practices. MSPs should emphasize the importance of data governance and data quality management with their Regular audits and continuous improvement efforts will help maintain the integrity and reliability of integrated data.
Are you trying to determine if Business Central is the right solution for your MSP clients? An experienced partner can help.
Overcoming data silos is critical for MSP clients to give them access to better data and improve operational efficiency. Microsoft Dynamics 365 Business Central provides the tools needed to integrate data effectively, offering numerous benefits. MSPs should leverage this powerful platform to help their clients break down data silos and unlock their full potential.
As an award-winning Microsoft cloud solution provider partner, Sherweb has years of experience helping MSPs make the best choice for their clients and we can help you decide if Business Central is the right fit for your clients’ needs.
Contact us to start a conversation, or check out our partner guide for more information about how we can help your business grow.
