In July, a mid-sized South African business I am currently working with lost one of its most experienced employees. The impact was catastrophic, not solely due to the individual’s seniority, but because he was the only one who understood how everything worked. Despite attempts at internal handovers, neither the organisation nor the employee recognised the extensive volume and nuances of processes, compliance routines, and unwritten practices that lived in his head only. Within the first month of his departure, deadlines were missed, compliance risks emerged, and the business experienced the fragility of its operations.
This isn’t an isolated case. As consultants in the digital transformation space, we are often called upon after the fact, when these types of events happen, as this is when organisations see the effects of having their operational knowledge scattered or inaccessible, often written in personal notebooks or stored on individual desktops or held in the memory of key employees. The human dependency risk is a very real challenge because when people leave, they take with them a significant chunk of institutional knowledge.
Knowledge fragmentation is usually the reason for organisations recognising the need to embark on digital transformation initiatives, but, together with security vulnerabilities and gaps in data fluency, it is also one of three fundamental barriers to an organisation successfully executing its digital strategy.
Knowledge Fragmentation results in Siloed systems, Siloed people and Siloed processes
According to Forrester, 79% of knowledge workers report silos within their organisations, and 81% of IT leaders say data silos are actively hindering digital transformation efforts. Efficiencies are fractured because data and critical knowledge are hidden in documents, on desktops, and in people’s minds. This shows up in very practical ways:
- New employees can’t find what they need during onboarding.
- Audits falter because compliance steps have no defined trail.
- Crises escalate because no one knows the full process end-to-end.
The lack of centralised and accessible knowledge impacts productivity and resilience. According to a Pyron and Unisphere Research study, 70% of respondents spent an average of one hour looking for information and 23% spent more than five hours. [1] That’s a large amount of time and money lost every week!
Digital transformation, at its core, is about overcoming this fragmentation. It requires clarity, consistency and connectedness. Without a shared knowledge base, organisations struggle to scale, innovate and compete.
Security Risks
Without shared systems and clear documentation, organisations face much more than inefficiency; they face real security risks. Many small to mid-sized companies still believe they are safer managing their cybersecurity in-house, but the bigger threat often comes from within: undocumented processes, single points of failure and knowledge locked in silos.
Most malicious activity exploits internal weaknesses within a company’s infrastructure, where a fragmented knowledge architecture can lead to significant losses. When critical records and business processes depend on individuals who are “too valuable to lose”, the organisation is exposed. Security isn’t only about firewalls and passwords, it’s about trust, resilience and the assurance that business knowledge is protected.
Transformation needs data fluency.
One of the most overlooked barriers to digital transformation is data fluency – the ability to understand, interpret and apply data effectively. You need to be able to have conversations about data and understand what you’re looking at and why it matters.
Access to data and the ability to use it are two sides to the same coin. The goal is to find a way of turning your untapped, siloed data into an asset with employees and systems that are fluent in its usage. Organisations invest heavily in technology platforms, but adoption often lags when data fluency is ignored. When employees are data fluent, they can confidently and appropriately use technology to make better decisions, collaborate across functions, and unlock value from AI and automation, ensuring that transformation projects deliver real ROI.
The success of this approach can be seen in companies that have revolutionised legacy systems and approaches to become leaders in their respective markets. Think Checkers Sixty60, which has revolutionised the way retail businesses operate across the country. Data fluency has been a central driver in the success and growth of the Sixty60 story, underpinning the implementation of its digital strategy and shaping Shoprite Group’s position as an industry innovator. Sixty60’s rapid rollout and evolution have been powered by an advanced use of data science, machine learning, and analytics, enabling highly efficient, personalised, and responsive operations.
Conclusion
Digital transformation is about creating a resilient, data-driven organisation where knowledge is centralised, secure, accessible and actionable. To enable this, companies need to overcome obstacles by giving equal attention to people, processes and technology. A successful transformation emphasises the selection of fit-for-purpose platforms and tools, engaged employees, shared and embedded knowledge, connected systems, and teams that are fluent in data.