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The Hidden Cost of Siloed Aftermarket Systems: 5 Reasons CIOs Should Care 

A man with multiple monitors frustrated with data

The typical enterprise CIO is responsible for thousands of applications. 

Each business function has its own unique tangle of technology to do its job. However, within and between these functions, systems are fragmented and disconnected. 

The CIO is like the conductor of a vast orchestra, but each section (percussion, brass, strings) is playing its own music. The result is operational misalignment, duplicated effort, and an inability to orchestrate effectively across the business.

This fragmentation also creates serious cybersecurity risks and sends maintenance and compliance costs spiraling, all magnified exponentially when new solutions are added.

The aftermarket organization, in particular, is often supported by a sprawling mix of disconnected systems—sometimes 50 or more—spanning everything from field service to parts logistics, diagnostics, and supplier management. Within this larger ecosystem, even the key enablers of aftermarket performance, like spare parts pricing, warranty, and inventory, are frequently managed in isolation. These silos reduce visibility, slow decision-making, and increase the cost and complexity of maintaining a resilient aftermarket operation.

For the CIO, this systemic disconnection creates a perpetual cycle of app maintenance, integration, and risk mitigation. And leaves little room for those strategic, forward-looking initiatives that really grow the bottom line, or make your tenure stand out.

Below, we explore five key reasons why siloed systems cause such stress for CIOs, and what can be done about it. 

1. Data Integration Is a Headache

A real-time, bird’s-eye view of the aftermarket playing field requires data harmonization and unification. But, integrating these fractured technology ecosystems is a real headache. 

Aftermarket systems speak different languages, follow different standards, and often store data in incompatible formats. 

Short-term fixes become the norm when there’s an urgent problem, but create a legacy of new issues: manual processes, custom-built connectors, and frequent data reconciliation, all causing downstream pain.

This results in an accumulation of technical debt that makes the IT infrastructure increasingly brittle and hard to evolve. 

2. Innovation Grinds To a Halt

When IT teams are consumed by the daily grind of maintaining and patching outdated, disconnected systems, innovation inevitably takes a backseat. 

The lion’s share of IT budgets go toward ‘keeping the lights on,’ leaving little time or resources for strategic initiatives that could drive real transformation.

For example, AI and data analytics hold astonishing promise for the aftermarket. Doing everything from forecasting demand to automating customer support, they are the key to turning those separate, self-contained bubbles into a vibrant, connected ecosystem of value creation.

But businesses without a strong, unified data foundation can’t even take the first step.

The opportunity cost is significant, as the aftermarket is increasingly seen as a key area for growth and differentiation in industries such as industrial and automotive manufacturing. 

3. Unsustainable Cost of Ownership

The cost of fragmented infrastructure is staggering. Beyond the initial licensing costs, each system requires its own infrastructure, support staff, training programs, maintenance schedules, and upgrade cycles. 

Up to 80% of companies’ IT budgets is spent keeping old IT systems afloat, according to Atera research. This duplication of effort and expense often leaves you with rising IT costs but without any business value to show for it.

Worse still, these escalating costs divert funds from more strategic projects that could deliver competitive advantage, such as customer experience improvements or digital services development. 

4. Multiplying Security Vulnerabilities 

Managing security across a fragmented IT landscape is like trying to keep burglars out of a massive mansion with all kinds of doors and windows, secret entrances, and hidden passages. 

Each additional system represents another potential vulnerability—a separate set of users, permissions, access points, and integration pathways that must be protected. Ensuring that every system complies with security best practices and receives timely patches is both time-consuming and prone to error. 

The broader the attack surface, the greater the risk of a breach. A secure, unified platform becomes an attractive option to consolidate security risk and reduce the number of links in the chain. 

5. Complex Compliance and Reporting 

For organizations with siloed systems, gathering the data needed for audits and regulatory reporting can be a Herculean task. 

Instead of automated, real-time reporting, IT teams rely on manual processes that involve extracting, transforming, and consolidating data from multiple sources. 

It’s wildly inefficient, increases the risk of errors, omissions, and inconsistencies, and consumes valuable time that could be better spent on strategic planning or innovation. A lack of transparency and traceability can also lead to regulatory scrutiny, slowing down business operations and damaging customer trust. 

A Path Forward: Focus, Connection, and Future-Readiness

The answer to fragmentation isn’t trying to consolidate every system across the aftermarket. For CIOs, the real opportunity lies in identifying the key enablers of aftermarket value and focusing efforts on connecting and optimizing those first.

By integrating critical enabling functions such as pricing, planning, inventory, and warranty into a unified, data-driven environment, IT leaders can improve accuracy, reduce duplication, and create a foundation for strategic growth. This not only simplifies reporting and security but also clears the path for innovation, enabling faster adoption of AI, self-service tools, and advanced analytics.

For CIOs ready to shift from maintenance to momentum, the time to modernize the aftermarket is now. And the first step is cutting through the noise to focus on what matters most.