Managing the fine line between progress and danger: Navigating covert tech adoption and its potential dangers
In today's digital landscape, the issue of shadow IT has become a growing concern for many organizations. A recent study reveals that 60% of UK CIOs report an increasing culture of shadow IT, with 79% admitting unawareness of cloud services in use [1].
Shadow IT, defined as the use of unauthorized applications within an organization by employees, without the knowledge or approval of the IT department, can lead to both innovation and risk. Adriana Karaboutis, VP and global CIO of Dell, advocates for embracing shadow IT as part of a wider culture of innovation, stating, "I don't chase shadow IT, I chase innovation" [2].
The primary reason for shadow IT, as cited by respondents, is the IT department's inability to test and implement new capabilities and systems in a timely manner, thus smothering creativity and productivity [1]. This trend, coupled with the rise of remote work and the bring-your-own-device (BYOD) culture, has made every employee a potential user of shadow IT.
However, these unauthorized applications are not vetted, authorized, controlled, or supported by the IT team and may not be in line with the organization's data management, security, and compliance requirements. The trend for businesses to move core processes to the cloud has accelerated the prevalence of shadow IT, making it harder to monitor [1].
Allowing or ignoring shadow IT may lead to the discovery of new working processes that benefit the wider business, but it can also be a security nightmare. To balance the risk of shadow IT with its innovation potential, businesses can adopt a collaborative and controlled approach.
Key approaches include engaging with employees to understand the needs behind shadow IT usage, maintaining visibility and control over unauthorized applications, developing flexible, responsive IT policies, implementing clear guidelines and guardrails, and educating employees regarding security risks and compliance issues linked to unauthorized IT use [1][2].
Solutions such as cloud application control (CAC) can provide businesses with visibility and control over all information staff are accessing or sharing, regardless of whether applications are authorized or not [3].
Interestingly, 49% of staff are comfortable using unapproved applications because they help them work more efficiently [1]. This underscores the need for businesses to find a balance between enabling employee-driven technology solutions and implementing strong oversight, security policies, and IT involvement.
In summary, the best balance is achieved by treating shadow IT with strategic acceptance, combining innovation enablement with risk management through collaboration, visibility, and adaptive policies rather than outright prohibition [2][4]. This approach helps capitalize on the agility and customization benefits of shadow IT while mitigating its substantial security and compliance risks [1][3].
References:
- Atos
- CensorNet
- Gartner
- TechTarget
- In the realm of technology and business, the rise of shadow IT, a phenomenon characterized by unauthorized applications used within organizations, is often linked to the finance industry, as IT departments struggle to keep pace with the demand for new, efficient tools.
- The intertwining of business, industry, and technology is further highlighted in the cybersecurity sector, as organizations grapple with securing their digital assets while fostering innovation through controlled approaches that address the risks associated with shadow IT.
