Breaking Free from Data Silos – The Key to Professional Services Success

Having access to real-time financial and operational data is essential for making smart, impactful decisions. However, many companies find themselves tangled in a web of different tools and software, leading to data silos that block real-time insights.

Imagine data silos as giant containers on a farm—while they keep information secure, they also limit the flow that’s vital for timely decision-making. A report from S&P Global shows that 42% of professional services firms see these silos as a major challenge.

In this blog, we will dive into how data silos affect your business, expose the hidden costs, and offer practical solutions to break down these barriers.

The Financial Pitfalls of Data Silos

Gartner research shows that poor data quality costs businesses $12.9 million annually, a problem often exacerbated by data silos. But how exactly does a lack of visibility impact your finances?

• Blind Spots: Financial reporting software is crucial for managerial decisions, but its accuracy hinges on comprehensive data access. Silos mean managers can’t fully understand business needs, leading to poor financial decisions.
• Poor Performance: Teams depend on accurate project data. Missing data locked in silos can lead to below-par performance, budget overruns, and reduced profit margins.
• Productivity Limits: Maximizing team productivity requires detailed skills and utilization data. Without it, your team’s productivity will fall short of its potential.

Typically, data silos don’t cause massive financial losses in a single event. Instead, they result in incremental losses that accumulate over time, often going unnoticed until they become substantial.

How to Break Down Data Silos

Recognizing the financial toll of data silos is the first step. Breaking them down involves more than just granting database access or relocating information. It requires a strategic approach, a better software solution, and a long-term data usage plan.

First, focus on integration. Modern solutions should be integrated with existing systems to enable effective data analysis without shutting down old systems. This approach ensures that valuable legacy data remains accessible while leveraging new technology for better insights.

Next, adopt new data governance strategies. Change the company’s approach to data management by eliminating the processes that create silos. This may involve rethinking how data is collected, stored, and shared across the organization to foster a more collaborative environment.

Additionally, consider creating a data lake. A data lake that contains all company data can provide broad access across the business. This central repository ensures that all departments can access and utilize data efficiently, breaking down barriers to information flow.

Finally, consider a system overhaul. Implement a comprehensive software solution that includes data storage, business intelligence, project and resource management tools in one location. Coupled with effective change management, this can transform business operations by making data accessible in real-time and much more actionable.

Ending data silos opens new possibilities for your business, leading to improved performance and a stronger financial bottom line.

The Benefits of Improved Data Visibility and Accessibility

Getting rid of data silos and enabling real-time access to data can bring many tangible benefits to your professional services company, including:

• Enhanced Real-Time Decision Making – Financial data that managers can actually trust and access in the moment (without having to pull from 10 different spreadsheets) allows professional services businesses to make more data-driven decisions.
• Improved Operational Efficiency – Better visibility across data such as resource availability and skills matching allows for more efficient projects, and simply cuts down on time lost looking for answers. According to VentureBeat, the average employee spends 3.6 hours a day searching for information, hampering productivity and causing massive frustration.
• More Accurate Forecasting – To predict client demand, resource availability, and project profitability effectively, businesses need to integrate data from sales pipelines, demand generation, and resource management. With this data and advanced forecasting software, companies can utilize capacity analytics, assign candidates, assess skills for unsold work, and plan proactively for future requirements.
• Proactive Financial Management – Identifying financial trends allows managers to address issues before they escalate. Detailed data on ongoing projects is crucial for tracking margins and identifying where profitability is at risk. By addressing these areas early, businesses can prevent significant financial losses.
• Increased Transparency – Managers must stay informed about current projects and the overall company portfolio. While clear communication helps, having access to integrated data is key. Managers can track project expenses in detail, make necessary adjustments to improve margins, and maintain transparency with clients about project costs.
• Simplified Month-End Close – Disorganized financial data can prolong month-end closing. By consolidating financial data in a robust management system, companies can streamline invoicing, implement effective collections processes, avoid invoicing delays, and ensure timely month-end closures.

If you’ve operated with data silos for a long time, it’s likely that you’ve gotten used to dealing with the challenges and have simply learned to live with the impact. But there is a better way.

Break Free From Data Silos With Kantata

At Kantata, we are committed to advancing professional services firms with technology specifically designed for your unique daily needs. Our aim is to maximize the potential of the data and teams present in your organization, enhance real-time decision-making, and improve the predictability of project success.