18
Feb
10

Silo effect


The silo effect is a phrase that is currently popular in the business and organizational communities to describe a lack of communication and common goals between departments in an organization. It is the opposite of systems thinking in an organization. The silo effect gets its name from the farm storage silo; each silo is designated for one specific grain, and a lack of communication causes departmental thinking to lack ideas from other departments. A notable example of the silo effect in the real world is the beer distribution game, whose goal is to meet customer demand for cases of beer, through a multi-stage supply chain with minimal expenditure on back orders and inventory. Communication is against the rules so feelings of confusion and disappointment are common.

An information silo is a management system incapable of reciprocal operation with other, related management systems. A bank’s management system, for example, is considered a silo if it cannot exchange information with other related systems within its own organization, or with the management systems of its customers, vendors, or business partners. “Information silo” is a pejorative expression that is useful for describing the absence of operational reciprocity. Derived variants are “silo thinking”, “silo vision”, and “silo mentality”.

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So what’s this blog about?

Another attempt? Well yes. Attempting to figure out another sustainable model (there are some other attempts going on parallel-ly). Well, we have a lot of questions in mind. we read up stuff, we do some research to find answers to these questions. This is an attempt to publish that little 15-20 minute research.

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