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by Michael R. Wade Published February 26, 2026 in Brain Circuits ⢠3 min read
The average factory has hundreds of systems and hundreds of software applications ā just within one company. Multiplied across supply chains, thousands of systems and datasets have enormous value locked in them, but donāt speak to each other and arenāt brought together. If shared and analyzed, insights from this proliferation of āwalledā IT systems and software in industrial processes in sectors as diverse as energy, pharmaceuticals, and transportation can help companies become more sustainable, increase machine lifecycles, and improve efficiency and productivity.
The first step to eradicating silos is to understand that itās a basic human tendency to build walls around us to keep the wolves out when we donāt feel safe. The more transparent you are with difficult decisions, the more willing people are to let go of their silos and share their data.
Bring leaders representing all sides of the business together, but donāt then allow them to create a silo ā they still have to have end-to-end responsibility for their actions.
Central to collaboration is the need to change mindsets and nurture trust, which is based on relationships established over a very long period, so you have to be patient.
AI is a tool like any other technology, so if you donāt know what youāre doing, donāt use it. Randomly equipping everyone with AI tools is not the most effective way to harness their transformative potential.
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Breaking down data silos internally and across companies and sectors has the potential to benefit all stakeholders. Do so through building trust and instilling a culture of radical collaboration.
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Professor of Strategy and Digital
Michael R Wade is Professor of Strategy and Digital at IMD and Director of the Global Center for Digital and AI Transformation. He directs a number of open programs such as Leading Digital and AI Transformation, Digital Transformation for Boards, Leading Digital Execution, Digital Transformation Sprint, Digital Transformation in Practice, Business Creativity and Innovation Sprint. He has written 10 books, hundreds of articles, and hosted popular management podcasts including Mike & Amit Talk Tech. In 2021, he was inducted into the Swiss Digital Shapers Hall of Fame.
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