The problem with information silos is that decisions that are appropriate when considering only a single function like purchasing may create inefficiencies when the entire process is considered.

Question

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Information silos refer to situations where different departments or functions within an organization have isolated information systems or databases. This can lead to a lack of communication and coordination between different functions, resulting in decisions that may not be optimal for the organization as a whole. In the context of purchasing, for example, decisions based solely on cost may not take into account other factors such as quality or availability, which may impact other functions such as production or distribution. Therefore, the statement is true, and information silos can result in inefficiencies in the entire process.

The Problem with Information Silos Is That Decisions That Are