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Effects of silo mentality on corporate ITC’s business model

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  • Mohapeloa Tshidi

    (Rhodes Business School, Grahamstown, South Africa)

Abstract

Background & orientation: The existence of silo mentality has direct effect on the business model used by any ITC company. Its contribution slows service delivery whilst increasing customer’s despondency. However mitigation could help overcome barriers within divisions, improve customer experience and increase productivity. But when different units as components of a company fail to integrate, collaborate and work together to achieve a common objective goal, not only are performances affected but also operations at all levels. A business model canvas can help determine how a company intends to create value for customers whilst it makes money. Thus deliverance of an effective value proposition for efficient customer needs, can be affected through silos. Purpose: This study explore the effects of silo mentality within an ITC company (at organisational level) using the 9 elements of the business model canvas as framework. Methodology and research questions: As an exploratory study qualitative methods were used where in-depth interview questions looked at how silo mentality within the organisation affects the core business model elements and why. Twelve participants were selected from an enterprise business unit through a convenience sampling method. Content analysis helped with the development of core themes that looked at the how silos affect each element (process) and why (meaning). Findings: Silo mentality affects not only the individuals but team, products, value proposition, relations with partners, customers, stakeholders. Thus undermines internal capabilities and key resources. Absence of teamwork within the divisions leads to conflicts which delays achievements of common goals. Bottlenecks affect inter-divisional progress and relations, customer output and relations and compromise the quality of service. Implications: Silo mentality is a bottleneck that not only weakens firms’ capabilities and growth potential but destroys any value created by the firm.

Suggested Citation

  • Mohapeloa Tshidi, 2017. "Effects of silo mentality on corporate ITC’s business model," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 1009-1019, July.
    • Handle: RePEc:vrs:poicbe:v:11:y:2017:i:1:p:1009-1019:n:105
    DOI: 10.1515/picbe-2017-0105
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    References listed on IDEAS

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    3. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
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