For the vast majority of businesses today, technology plays a crucial role across the whole organisation – from managing emails to handling customer data, to sending out invoices.
Business owners / directors usually make decisions about which applications need to be used to get the job done. Those applications are then implemented in a controlled way. However, sometimes employees may be using other tools and applications that the company hasn’t necessarily approved. This is known as “Shadow IT.”
While it might seem harmless, Shadow IT can have serious consequences, so it’s crucial to understand and address it.
What exactly is Shadow IT?
It is any IT resource (hardware or software) that is being used in a business but which hasn’t officially been approved by the decision maker(s) of that business. Usually, it won’t have been rolled out in a controlled / secure way.
Examples can include
- Personal laptops
- Personal email accounts
- Messaging applications
- Cloud management tools
- Productivity tools
- Some AI tools
Why do employees use Shadow IT?
Convenience: Sometimes employees find certain tools more user-friendly or efficient than the ones provided by the company.
Speed: Waiting for approval might be time-consuming, so employees may turn to readily available tools to meet deadlines.
Innovation: Employees often experiment with new tools to improve their productivity and find better ways to do their jobs. This sounds positive but may not take into account a broader picture across the organisation.
The Risks of Shadow IT
Security Threats: Unapproved applications may not have the same level of security as those vetted by the company. This can lead to data breaches, where sensitive company information might be exposed.
Compliance Issues: Many industries have strict regulations about how data should be handled. Using unauthorised tools can lead to non-compliance, which may result in legal issues and / or a hefty fine.
Data Loss: If applications are used without having gone through the usual processes, they may not be included in the company’s backup strategy. This could lead to important data being lost permanently.
Hidden Costs: While some Shadow IT tools may appear to be free or low-cost, there can be unexpected expenses – for example if there is an initial free trial, after which a chargeable service automatically kicks in.
How to Manage Shadow IT
Monitoring and Management: Use monitoring tools to keep track of the applications and services being used within the company network.
Make sure that approved tools are easily accessible. The simpler it is for your team to use the applications that you want them to, the less likely it is that they will look for alternatives.
Encourage employees to talk about their IT needs. This can help the company provide (in a controlled way) suitable solutions that meet everyone’s requirements.
Education and training: Regularly educate employees about the cyber security risks – including Shadow IT – and the importance of using approved tools.
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