The Challenges of Working With Siloed Software Systems
Updated: Jun 25, 2019
As business owners aspire to realize growth, they need to have a rigorous plan for accommodation of future expansion requirements. The reason is that without proper planning business owners will experience poor visibility of their business operations. Some entrepreneurs opt to maintain disparate systems to handle various functions within their organizations, which results in facing challenges of working with siloed software systems.
Working in a siloed environment is not the best option because it poses several hazards for your organization and here are some of them.
Customer Retention Challenges
Maintaining excellent customer service is critical for business owners who want to win the loyalty of their customers and retain them as well. The reason is that the business environment has become competitive and if you fail to meet or exceed the expectations of your customers they will soon move on to competitors. Therefore, if you maintain disparate systems, you may not respond to clients promptly, and it will also increase the probability of miscommunication.
For instance, two employees handling the same customer using different systems one may indicate that an item is in stock while the other confirms that the product is out of stock, which results in confusion and probable loss of customers.
Increased Employee Turnover & Costs
Failure to consider the need to interlink your business systems places a demand on your employees to duplicate data and contend with the challenge of reconciling data from different sources. As such, the task of retrieving information from multiple systems and submitting daily reports is laborious, and it can also become a source of demotivation among staff, as they have to invest larger part of their time on time-consuming procedures that are unnecessary. Consequently, disparate systems might withdraw the attention of staff from the core functions of your enterprise.
Aside from being a cause of frustration and demotivation for employees, the more time a worker spends to confirm inventory is more money out of pocket. Each angry customer that leaves because of misleading information leads to lost sales. Every sale forced due to overstock or spoiled goods thrown away costs the business money. By having one interconnected system in play removes these problems and improves revenue.
Challenges In Streamlining Processes
If operations in your company depend on systems and data, it becomes difficult to realize seamless functionality when you rely on disparate systems. For instance, a manufacturing firm that wants to automate its production department may not achieve this goal if it fails to interconnect the systems in place. As a result, achieving efficiency in workflows becomes a far-fetched reality for business owners who use several independent software systems.
Every time someone must fill in data it could lead to misinformation. A simple misclick or inverting a couple of numbers could cost time and resources. One integrated system makes entering data simple and reduces the chance of conflicting information.
Businesses dealing with inventory and stock but relying in different systems might face enormous pitfalls. If there are many systems keeping track of stock, then it can be easy to get excess. Excess product can lead to spoiled goods for restaurants or grocery stores. Overstock also forces sales at reduced prices and lower profit margins. On the other hand, some companies might find themselves in case of overselling, which is equally damaging for a business.
Taking everything into consideration, working with siloed software that isn't effectively integrated can lead to risks and major challenges. Having all business data in a single system unifies processes and increases efficency and productivity of all parts involved.