The digital workplace is evolving faster than IT departments can keep up.
Meet shadow IT: the unsanctioned tech solutions employees adopt to get their jobs done.
Sounds harmless, right?
Think again.
While it might boost productivity, it's a cybersecurity nightmare waiting to happen.
But don't panic! There is a way to reduce risks, ensure compliance, and mitigate vulnerabilities.
Let's dive into the shadows and learn all about the reasons for shadow IT, unsanctioned apps, and 5 secrets to manage this digital nuisance
(Spoiler: Your sensitive data will thank you.)
What Is Shadow IT?
Shadow IT refers to the use of unauthorized technology solutions within an organization without the knowledge or approval of the IT department.
It's when employees use cloud services, applications, or hardware that haven't been vetted or sanctioned by the company. While it might seem harmless, shadow IT in your organization can pose significant risks, making management crucial to protect company data and maintain security.
Shadow IT examples
Picture this: A mid-sized B2B company implements a standardized video conferencing platform.
However, the sales team, frustrated with its limitations, starts using an unauthorized consumer-grade app for client meetings.
This seemingly innocent workaround puts the company at risk of data protection violations and increases the risk of data breaches. It's a prime example of why organizations need to find effective ways to manage shadow IT.
Why Do Employees Adopt Shadow IT?
Ever wonder why many employees use unapproved tools?
It's simple: they're looking for efficiency.
When official channels can't provide the tools they need, workers turn to SaaS solutions that promise quick fixes. This desire for productivity often trumps concerns about security measures.
The irony?
While trying to boost efficiency, employees may unknowingly put the entire organization at risk.
56% of businesses feel that personal device use has left them more vulnerable to a security breach
Without a proper audit within the organization, these shadow IT practices can flourish without proper oversight, potentially compromising data security and compliance.
The key to addressing this issue? Understanding employee needs and providing sanctioned alternatives that match the appeal of shadow IT tools.
What Are the Main Shadow IT Risks and Benefits?
Shadow IT isn't all doom and gloom.
Yes, we can argue that it can help organizations innovate faster.
But (and it's a big but), it also comes with potential security risks that'll make your IT team lose sleep.
So, what's the deal?
Is it a secret weapon or a ticking time bomb for your organization's data?
Let’s unpack what makes employees go for shadow IT and what it means for your business.
Benefits of Shadow IT
Is shadow IT bad? Not always.
While managing shadow IT can be challenging, it often brings unexpected advantages. Here's why shadow IT often has a silver lining:
Increased Innovation and Agility
When employees adopt new SaaS applications or software or cloud services, they're often addressing gaps in existing systems. This can lead to innovative solutions that spread across the organization, potentially improving overall efficiency and faster problem-solving abilities to spot new business opportunities.
More Productivity
Shadow IT activities might actually boost productivity.
When workers find software or cloud tools that better suit their needs, they can often complete tasks more quickly and effectively. Bypassing lengthy and months long processes, employees can use user-friendly tools that fit their needs on the spot.
Better User Satisfaction
When employees use shadow IT solutions, it's usually because these tools meet their needs better than sanctioned options. And given that 61% of employees aren’t satisfied with existing technologies, shadow IT can potentially lead to higher job satisfaction and engagement.
Lessens the burden on the IT department
Unsanctioned apps may reduce the ever-growing workload on IT teams. While shadow IT exists, it can free up IT resources for more strategic projects. However, effective shadow IT management is still crucial to maintain security and compliance.
Risks of Shadow IT
While shadow IT can have some benefits, the risks associated with shadow IT can't be ignored. In fact, according to an IBM report, 83% of organizations have experienced more than one data breach, and only 17% of breaches were first-time offenses.
Therefore, we think Information technology teams must be aware of these potential pitfalls:
Security Risks
When employees adopt a new tool without proper vetting, it can create vulnerabilities. The rise of remote work has only amplified these potential risks, as home networks may not have the same level of protection as office systems.
Non-Compliance Issues
Each new tool introduced without IT approval could violate regulations. Without proper oversight, it's challenging to monitor for suspicious activity or maintain appropriate access control, potentially leading to compliance breaches. This is something we can't stress enough, specially when it takes 277 days on average to identify and contain a breach.
Data Loss
New apps and shadow IT within an organization can lead to data fragmentation. When employees use an unapproved cloud app or save company data on a personal device, it becomes difficult to track and protect sensitive information.
Increased IT Costs and Inefficiencies
And don't get us started with the potential of financial losses (we'll talk about it in a minute).
Yes, Shadow IT might seem cost-effective initially, it can be challenging to effectively manage in the long run. The need to overcome integration issues and implement additional management tools can lead to unexpected expenses and inefficiencies.
Is Shadow IT a Growing Problem?
So, how do you control Shadow IT?
Spoiler alert: You don't. At least, not in the way you might think.
Here's the deal: Shadow IT isn't just growing - it's exploding. But before you panic, let's look at the facts:
A 2020 CORE research report found that shadow IT usage has skyrocketed by 59% since remote work became the norm. Yikes, right?
But here's where it gets interesting...
Gartner predicts that by 2027, a whopping 75% of employees will be tech tinkerers, creating or tweaking technology outside IT's radar.
Now, before you start sweating about risk management, consider this: What if we told you that shadow IT introduces an opportunity?
Instead of battling against the tide, smart organizations are riding the wave. They're turning to cybersecurity training and embracing the use of shadow IT skills to their advantage.
The secret? Cybersecurity training for citizen developers.
Think of it like giving your employees a license to innovate - safely.
So, is shadow IT a problem? Only if you're not ready to harness its power.
Citizen Development Is the Future of App Development
Yes.
The future of app development isn't just in the hands of your IT department - it's in your whole team.
Citizen development is flipping the script on shadow IT management, turning potential headaches into game-changing innovations.
Instead of trying to shut shadow IT down, forward-thinking companies are embracing best practices that empower employees to create solutions.
Citizen development can power innovation in 2024 without the shadow IT security risks.
Let's look into 5 tips you can use to manage Shadow IT without headaches.
5 Secrets for Managing Shadow IT With Citizen Development
Ready to turn the shadow IT challenge into your secret weapon? Here's how to do it:
1.Encourage a Collaborative IT-Business Culture
Break down silos between IT and other departments.
When everyone's on the same page, shadow IT management becomes a team sport, not a game of cat and mouse.
Foster open communication channels where business units can freely discuss their tech needs with IT.
This collaborative approach helps identify gaps in current systems and paves the way for sanctioned solutions that meet real business needs.
2.Create a Centralized Command Center for Development
Use a centralized platform where citizen developers can access approved tools, resources, and guidelines.
This hub serves as a go-to place for all development activities, making managing shadow IT more streamlined and transparent. It allows IT to maintain visibility while giving employees the freedom to innovate within a controlled environment.
3. Implement Strong Governance and Oversight Mechanisms
Develop clear policies for app development. These guidelines should outline security requirements, data handling procedures, and approval processes.
When you set clear boundaries, you can better manage potential risks associated with shadow IT while still encouraging innovation. Regular audits and reviews can help ensure compliance.
4. Keep Citizen Developers Trained and Ready
Invest in ongoing training programs that educate your team on security best practices, compliance requirements, and the latest development tools.
This empowers employees to become citizen developers, and create applications safely and efficiently. By fostering a culture of continuous learning, you're not just mitigating risks – you're building a more skilled and adaptable workforce.
5. Give Power to Your Employees with No-Code Platforms
Provide your team with approved no-code development platforms.
No-code tools, like LoftOS, can empower your employees to create solutions for various needs 10x faster, from digital event hosting, flexible databases, website creation, project management, all within a secure framework. By offering user-friendly alternatives to unsanctioned apps, you're channeling innovation in a controlled, productive direction.
Shadow IT Can Cost Your Business a Lot of Money
Think shadow IT is just a minor inconvenience? Think again.
The price tag might make you do a reconsider everything you know.
Let's crunch some numbers:
Gartner found that shadow IT accounts for a whopping 30% to 40% of IT spending in enterprise organizations. That's a huge chunk of money flying under the radar.
But wait, it gets worse.
The Cost of a Data Breach Report 2022 reveals that the average data breach sets companies back $4.35 million. And guess what? 60% of these breaches lead to price hikes that get passed on to consumers.
Managing shadow IT isn't just about keeping your IT team sane. It's about protecting your bottom line.
Examples of shadow IT might seem harmless - a rogue cloud storage app here, an unapproved project management tool there. But without a solid shadow IT policy, these small decisions can snowball into major financial risks.
The costs shadow IT include more than just potential data breaches. There's also the inefficiency of duplicate systems, compliance violations, and lost productivity when unsanctioned tools fail.
The takeaway? Ignoring shadow IT isn't just risky - it's expensive.
LoftOS Helps Your Organization Eliminate Shadow IT
Tired of playing defense against shadow IT?
LoftOS offers a proactive solution that addresses the root cause.
Our no-code platform empowers your teams to build the tools they need, when they need them - all within a secure, IT-approved environment.
With LoftOS, you can:
- Streamline processes and boost productivity without compromising security
- Ensure GDPR compliance, protecting your sensitive data
- Centralize all your digital tools, eliminating the need for risky third-party apps
- Enable rapid development, reducing reliance on overworked IT departments
- Provide a user-friendly interface that requires minimal training
By giving your employees the power to innovate safely, LoftOS transforms shadow IT from a threat into a competitive advantage.
Ready to turn shadow IT into a force for growth? Try LoftOS for free today and experience the future of secure, efficient app development.
