Insights

Many companies have struggled to rein in their organization’s shadow IT—applications, such as spreadsheets and desktop databases, created and maintained by different parts of the business but without the IT department’s knowledge or engagement. Shadow IT represents a double-edged sword: these applications support critical business activities, and are likely to grow with the advent of modern and more robust cloud-based productivity tools; however, since shadow IT skirts the regular procurement, implementation, and governance processes, the applications can significantly increase an organization’s IT and security risks.

As companies contemplate a path forward, it’s worth acknowledging two truths: shadow IT is essential for business operations, and talent capable of creating applications often resides outside the IT department. Organizations must embrace this reality to begin the journey to capture the enterprise’s full potential for digital value creation and capabilities.