Information Silo

AAA

DEFINITION of 'Information Silo'

An information management system that is unable to freely communicate with other information management systems. Communication within an information silo is always vertical, making it difficult or impossible for the system to work with unrelated systems.

Information silos exist because management does not believe there to be enough benefit from sharing information, and because information might not be useful to personnel in other systems.

INVESTOPEDIA EXPLAINS 'Information Silo'

Information silos may also exist because managers control the flow of information and access to the silo, meaning that they have an incentive to maintain the status quo. Additionally the costs associated with integrating the information sytstems may not justify a change.


An example of an information silo would be the electronic management system used for medical records. Hospitals within a network may be able to exchange information on the patient, but out-of-network facilities may not know of pre-existing problems that could help with diagnosis because the medical record system is not designed to "talk" to other information systems.

RELATED TERMS
  1. Customer Information File (CIF)

    A computerized file that stores all pertinent information about ...
  2. Silo Mentality

    An attitude found in some organizations that occurs when several ...
  3. Chief Information Officer - CIO

    A company executive who is responsible for the management, implementation ...
  4. Financial Information Exchange ...

    A financial information exchange (FIX) protocol system used by ...
  5. Asymmetric Information

    A situation in which one party in a transaction has more or superior ...
  6. Interchange

    A transfer of information from one computer to another electronically. ...
RELATED FAQS
  1. How do notaries reduce asymmetric information risk?

    A notary acts as an intermediary who can help mitigate the problems caused by asymmetric information in economic transactions. ... Read Full Answer >>
  2. What consumer products drive most of the demand for chips produced by semiconductor ...

    Midway through the second decade of the 21st century, nearly all electronic consumer products on the planet contain some ... Read Full Answer >>
Related Articles
  1. Insurance

    Evaluating The Board Of Directors

    Corporate structure can tell you a lot about a company's potential. Learn more here.
  2. Investing Basics

    The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  3. Active Trading Fundamentals

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  4. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  5. Professionals

    You Don't Know Jack Welch

    This engineer climbed the corporate ladder to lead his company into double-digit growth.
  6. Professionals

    Big Data Analysis: Modernizing Educational Methods

    Once a tool used to understand consumers, big data analysis is becoming a critical component in the creation of a modern, insight-rich educational system.

You May Also Like

Hot Definitions
  1. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  2. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  3. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  4. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  5. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
Trading Center