![]() ![]() Wasted investment Shadow IT applications sometimes prevent full Return on investment (ROI) from investments in systems that are designed to perform the functions now replaced by Shadow IT.Inconsistent approach Even when the definitions and formulas are correct, the methodology for doing analysis can be distorted by the arrangement and flow of linked spreadsheets, or the process itself can be wrong.In addition, many errors that occur from either lack of understanding of the concepts or incorrect use of the spreadsheet frequently go undetected due to a lack of rigorous testing and version control. Inconsistent business logic If a ‘shadow IT’ spreadsheet application encapsulates its own definitions and calculations, it is likely that over time inconsistencies will arise from the accumulation of small differences from one version to another and from one group to another, as spreadsheets are often copied and modified.Wasted time Shadow IT adds hidden costs to organizations, consisting largely of non-IT workers in finance, marketing, HR, etc., who spend a significant amount of time discussing and re-checking the validity of certain data, setting up and managing systems and software without experience.Placing barriers to shadow IT can be the equivalent of improving organizational security.Ī study confirms that 35% of employees feel they need to work around a security measure or protocol to work efficiently.īesides security risks, some of the implications of Shadow IT are: The challenge for IT is to recognize this activity and improve the technical control environment, or to guide the business in selecting enterprise-class data analysis tools. Also, alignment between departments can be avoided or enhanced dependant on the constraints within the broader business.įor example, with the rise of powerful desktop CPUs, business subject matter experts can use shadow IT systems to extract and manipulate complex datasets without having to request resources from the IT department. The host department has direct power over its shadow IT resources, thus potential bypassing any dysfunctional IT project management. ![]() The main benefit of shadow IT is the increased agility and the potential to prototype solutions to match the evolution of business requirements. In most organizations, the prevalence of shadow systems results in a heavily fragmented application landscape, where consistency, security and governability are sacrificed to achieve the necessary level of business agility, whether for the purpose of innovation or mere survival. It isn't uncommon for resourceful departments to hire IT engineers and purchase or even develop software themselves, without knowledge, buy-in, or supervision from a centralized IT department. In order to bypass perceived or actual limitations of solutions provided by a centralized IT department, other departments may build up independent IT resources to suit their specific or urgent requirements. Information systems in large organizations can be a source of frustration for their users. ![]() ![]() Shadow IT often introduces security and compliance concerns. In big organizations, shadow IT refers to information technology (IT) systems deployed by departments other than the central IT department, to work around the perceived or actual shortcomings of the central information systems. JSTOR ( August 2023) ( Learn how and when to remove this template message).Unsourced material may be challenged and removed. Please help improve this article by adding citations to reliable sources. This article needs additional citations for verification. ![]()
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