November 2007 - Small Business News

As part of a small business, you probably see how important your IT systems are; and how important it is to have the right data available when it is needed. However, a huge number of businesses are risking productivity, compliance with laws, and even profitability by failing to keep track of all their data. 

Research from database experts FileMaker reveals that the increasing IT skills of the office worker, coupled with the ease of use of modern technology is creating new and worrying 'micro-silos' of data amongst UK SME business.

A micro-silo is typically where important documents are locked away on individual PC’s or email accounts; leading to archives of data that fall outside the standard processes and policies of the company.

These silos can risk productivity by making it harder or more time consuming for employees or management to access data. It risks your compliance with laws as required data may be unavailable or difficult to get hold of. It also risks profitability through reduced productivity and by restricting the availability of data between employees (E.g.: Sales and customer support may both have useful information that does not get passed between the departments’ information silos).

The FileMaker 'Business Information Silos' research report also found:

• Poor IT planning – 64% of respondents believe their business suffers from a micro-silo mentality when it comes to company information, with almost half (45%) believing this is a result of poor IT management
   
• Diluted IT skills – It appears that the most junior and most senior employees have the lowest IT skills, with this situation increasing as the business size grows. Only 1 in 5 of business directors in companies of 20+ people stated having high IT skills
   
• IT free-styling – 77% of businesses think it is easier to create/customise critical business applications than three years ago, resulting in essential data residing with single users
   
• Sales departments worst for compliance chaos – Almost half (48%) believe increased user skills, coupled with the ease of customising critical databases leads to serious workflow/compliance issues. Commonly sales departments were seen as the worst offenders with 61%
   
• Self-taught IT – A third of IT managers (33%) have no formal IT qualifications, and are either self-taught or trained on the job, with 40% also coping with a dual role of director (41%) or operations manager (36%)

Tony Speakman, regional manager Northern Europe, FileMaker stated, "This research highlights that critical information management is being seriously harmed. Not just by simple bad habits but also by users actively creating, and in some cases unintentionally distorting, information to suit their own needs. These findings should provide a real wake up call. Whilst increased autonomy and a greater spread of IT skills can lead to a more fluid use of business information, SMEs must quickly rethink their information needs and processes".

For organisations worried about micro-silo mentality developing in their own businesses FileMaker offers the following tips:

• Integrate the micro silos in your business: Encourage employees to save and share information centrally and promote collaboration both within and across departments
   
• Identify common data management challenges at source: Is there a clear written policy in terms of what is and is not acceptable use of IT by employees or is data abused by poor IT management?
   
• Understand user behaviour: Hoarding of information is often a symptom rather than a cause of silo mentality. For example a mobile workforce that is not served by the current IT system will often use email as a default business drive because accessing the network is too cumbersome
   
• Target key areas as a catalyst for change: Who are the database rebels in your organisation and how can you better support them? If certain roles in the business place greater strain on IT controls, perhaps more support, education, or even restriction is required in these areas
   
• Differentiate between data for sharing and data for individuals: Identify which data needs to be used either by more than one person or for more than one purpose. Choose the appropriate location and tool for that data and then do not compromise on the implementation of a process that protects that data. BUT do allow data used by only one person to be handled in the way they wish

For more information on IT issues visit our Internet and Technology section here.