Silos serve a purpose in farming, but in the world of technology, they are burdensome and risky.
For investment managers this can mean the front-office does not communicate with the back-office and vice versa. A good analogy would be that the right hand doesn’t know what the left hand is doing. The silo-based, legacy system architecture is prevalent in many buy side systems.
Given all the emphasis on data management, eliminating silos is the most basic way that investment management firms can eliminate risk while improving productivity in the process.
As recent industry trends have shown, these business risks are unnecessary and can turn into a real problem.
Information is the key to intelligence and barriers not only put firms at risk, they hinder the efficiency of the firm as a whole.