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The pros and cons of "Shadow IT" in software development


Recently we’ve seen the emergence of so-called “Shadow IT” within many organisations. If you’re not already familiar with the term, it refers to those who manage to dodge the usual IT governance by means such as using thumb drives to share files or “unapproved” software products to achieve business tasks. Shadow IT can emerge from within technology groups but in many cases is sourced from non-tech areas such as the marketing or sales department.

What I’m really interested in is examples you have of Shadow IT within software development. Products like Excel and Access are often the culprits as their commonality means they’re easily accessible to the broader organisation. In many cases this is driven by someone who has just enough knowledge to make the software perform a business function but not quite enough to be aware of all the usual considerations required when building software for an enterprise.

What sort of cases of Shadow IT have you witnessed in the software development space? What processes have you seen unofficially addressed by this practice and just how important have these tools become? An example would be the use of a single Access database on a folder share becoming common practice for tracking promotions across the marketing department. Remember this cuts both ways; it can be extremely risky (lack of security, disaster recovery, etc) but it can result in innovation from a totally unexpected source.


Solution

  • The advantage is that users get exactly what they want and need, when they want and need it. Getting a request through a largish IT shop is a trying experience for a user. IT rarely has the business knowledge to let them give the business owners exactly what they are asking for, and when requests are denied or requirements amended, an explanation in plain English (or whatever language) is rarely forthcoming.

    The disadvantages outweigh the benefits. Societe Generale lost billions due in part to "Shadow IT". It can cause support nightmares when an Access application, for example, becomes essential and outgrows the capabilities of the person who created it, or that person leaves. Even a poorly written Crystal Report can become so popular and widely used that it starts to drag down the database it is accessing when reporting times comes around. And if the person who wrote that report did not fully understand relational databases, it could produce bad data in some situations; data that causes bad business decisions to be made. Using a commercial (outsourced) application guarantees that the users will not get exactly what they want; there will always be compromises, and no explanation of why they were made.

    The previous poster was right. Shadow IT exists because IT does not do its job well enough. There is not enough business knowledge, not enough responsiveness, and especially not enough communication. These things are why "Shadow IT" exists. The business owners paid for the machines, the admins, the dbas, and the programmers. It frustrates them when IT loses sight of that.