Reach for the flashlight - a look into the shadow IT

Do you know this? You are under time pressure and need to send a large presentation or lots of documents as quickly as possible. Then you get the annoying error message: "Maximum file size exceeded". On the recommendation of a colleague, you quickly install a cloud service in a hurry and share all the files there.

... And suddenly this supposedly gloomy creature in the background of your company has grown by another installation.

For IT managers, administrators and those responsible for data security, alarm bells are - understandably - regularly going off. They lose control and worry about the associated ghosts that are wreaking havoc - security vulnerabilities, potential cyber-attacks, breaches of license rights and hidden costs.

For once, we are not looking at shadow IT as a threatening entity. Instead, we pick up a flashlight and shine a light on the unknown phenomenon.

Do you dare to accompany us in this article? What is hiding there? Could the darkness even be hiding opportunities and new possibilities?

Without the knowledge of the IT department - Shadow IT

If we take a first look at the shadow IT of companies, we first see many outlines of third-party software that was installed without the knowledge of the IT departments.

Various cloud services, social tools, self-organization software, email programs and applications for document and photo editing are hidden away on employees' laptops.

But complete support processes from specialist departments, self-programmed software or hardware drivers for printers, routers etc. can also be found in the depths of work computers.

So what exactly does the term "shadow IT" mean?

This refers to any use of software and hardware that has not been tested and approved for use in the company. It is beyond the control and visibility of central IT or IT service management in the company.

Usual services such as data backup, patch management or user support are often no longer required, as employees have purchased the software themselves and have to manage it on their own.

Data clouds are currently casting ever larger shadows. Many employees are increasingly turning to cloud applications to upload a few photos from the last workshop or share new tasks with colleagues. They are installing free software, even though the company's default applications would theoretically have the same functions. The result? Parallel IT landscapes are emerging.

In most cases, an "official" IT landscape managed by the IT department and an "unofficial" one operated by the respective specialist department develop.

But why is that the case? What are the reasons for Shadow IT?

The causes of shadow systems

There can be many reasons for Shadow IT. As a rule, they are as follows Causes:

  • Employees want fast, customized solutions
  • Growth of practical cloud solutions
  • Many installations no longer require local admin rights
  • Process of official software implementation by IT is time-consuming
  • IT departments do not know the needs of employees
  • Communication gaps between IT and the specialist departments
  • More home office - more in-house software
  • Increasing self-determination of employees
  • Even stronger online skills of the new generations Y & Z
  • Integration of privately used software and business tools (e.g. appointment calendar)
A natural change

Even if shadow IT sounds dangerous and dramatic at first, it simply happens and is part of the course of things. An employee who discovers a piece of software that makes his or her work easier doesn't spend much time going through the IT department's extensive regulations. Internet browser and e-mail address - that's often all it takes to create an account or download software.

Individual departments also often help themselves if IT departments are unable to deliver solutions on time.

At this point, an appeal to all IT managers and those responsible: Don't demonize Shadow IT too much! After all, companies need motivated and self-determined employees who look for solutions themselves and don't spend ages dealing with problems. Even if this may sound a little harsh - in the past, IT departments have often failed to provide the right services at the right time. Yet these are precisely the core tasks: Making specialist departments more efficient with the help of IT services and thus contributing to the company's success!

We are currently undergoing change. In order to keep pace with digitalization, the self-image of IT departments needs to change. Open-mindedness, openness to new ideas and flexibility are hugely important qualities for the path to an even more digitalized future.

The opportunities of shadow IT

If we now take a closer look at the mysterious shadow, there are real advantages.

As many specialist departments themselves know exactly which software is best suited to their work and take care of some of the IT themselves, they even relieve the IT manager of work. This results in a very agile approach that makes it possible to advance individual business areas more quickly. The IT department thus has more time for internal consultations and strategic projects.

Shadow IT is primarily created to simplify both the company's own work and the processes of the specialist departments. There is a lot of potential here to promote a rethink and advance the company's success.

For example, if it turns out that many employees are downloading identical tools to save time, this could be an opportunity to roll out the software across the entire company.

So how can IT departments exploit the opportunities of shadow IT in the long term? How can you gain a better overview of this parallel universe and possibly reduce its size?

Out of the comfort zone

A complete revival of centralized IT solutions is unlikely to happen. This contradicts the current developments in digitalization. Alternative solutions are therefore needed.

The first step is for IT departments to show acceptance and understanding of the new circumstances. Then it's time to roll up their sleeves and get rid of legacy issues.

IT departments and specialist departments should say goodbye to superfluous tools, but also to entrenched positions and conflicts between them. It is important that both sides better understand the respective needs and challenges. Even if it is uncomfortable at first, a common path can only succeed with an open dialog.

So get out of your comfort zones!

Concrete ways out of shadow IT

How can the path out of shadow IT be successful? For a fresh start, we recommend reviving dusty key user concepts and the associated establishment of an IT board.

The IT Board should consist of these stakeholders:

  • Key User
  • Process owners from the specialist departments
  • IT specialists from the IT department

The IT Board is primarily there to seek and maintain dialog. Experience has shown that the mutual requirements and challenges become much clearer for everyone involved.

It is then time to jointly develop a new digitalization strategy that is aligned with your company's overall strategy and corporate goals.

Establish a long-term stable IT landscape

Based on a three- to five-year plan, the IT Board should implement a modern and future-proof IT landscape that following fields of action includes:

  1. Infrastructure
  2. Workplace
  3. Communication
  4. Collaboration
  5. Application
  6. Governance

A demand and change management process is crucial for a stable IT landscape. The new IT Board will also take on this task in future. The new board should be consulted for all new requirements (= demand management) or change requests (= change management).

With the tools just mentioned, your company has the ideal prerequisites for better dovetailing IT and business in the future.

Our advice at this point: When introducing new processes, always remember to communicate the "why"! Emphasize the respective advantages for the new projects.

For example, the introduction of a cross-departmental collaboration tool eliminates the need to keep duplicate task lists. It is also easier to implement new projects on a single platform. Communicate precisely these opportunities!

Shining a light on shadow IT

If we know exactly what the monster under our bed looks like, we can deal with it better than just guessing whether it could really become a danger. Maybe it's not so threatening after all...

So get to grips with shadow IT. Be open to new ideas and venture down new paths as soon as new opportunities arise. Fine-tuning or new decisions will always be necessary if you follow new trends and technologies.

If all this can be achieved in dialog between the specialist department and IT, you can transform Shadow IT into successful processes for your company!