Business Intelligence Exam Practice 2025 – Complete Prep Guide

Data silos refer to isolated data storage systems where information is kept separately from other data stores, often within specific departments or applications. This separation can occur for various reasons, including organizational policies, technological constraints, or a lack of communication among departments.

When data resides in silos, it becomes difficult to access, share, and analyze, leading to inefficiencies and the potential for inconsistent data across the organization. For instance, if one department maintains its own database without integration into a central system, it may have a view of the data that is not aligned with other departmental views, creating barriers to comprehensive analysis and decision-making.

In contrast, integration points for data sharing, tools for data visualization, and methods for real-time data processing do not encapsulate the concept of data silos. Integration points would aim to connect different data storages, while visualization tools help present data, and real-time processing refers to the immediate handling of incoming data. Thus, the defining characteristic of data silos is their isolation, making the second choice the correct understanding of this term.