Why “Shadow IT” is a Legacy Mindset
Why “Shadow IT” is a Legacy Mindset
Wow, I recently heard from a colleague that there was a spike of interest on-line about the term “shadow IT.” I almost fell off my chair, since it is such old thinking. We wrote about this in 2019.
The term “shadow IT,” often used to describe technology initiatives driven by business units without explicit IT department approval, reflects an outdated and potentially adversarial view of technology adoption within organizations.
In today’s rapidly evolving digital landscape, clinging to this terminology hinders collaboration and overlooks the potential benefits of business-led innovation. Instead of viewing these initiatives as “rogue IT” or shadow IT, organizations should embrace a more agile and collaborative approach that recognizes the increasing tech-savviness of business users.
But let’s consider why this term may be popping up again.
Background on the Term
Traditionally, “shadow IT” was perceived as a security risk and a source of data silos. Business units, frustrated by lengthy IT processes or unmet needs, would often implement their own software or cloud services. While security and governance remain crucial concerns, framing these endeavors solely as “shadows” neglects the underlying drivers and the potential for valuable innovation.
Why did organizations traditionally view business-led IT as “shadow IT”? This perspective often stemmed from a centralized IT model where the IT department held exclusive control over technology decisions and infrastructure. Business units lacked the tools and autonomy to address their specific technology requirements efficiently. This created a disconnect, leading business users to seek their own solutions, often without the IT department’s knowledge or oversight.
Why Would Business Leaders Be Asking about Shadow IT?
While I doubt many business leaders would call technology in the business “shadow IT”, there are several factors are driving interest in the role of IT in the business.
Firstly, the pace of business change fueled by AI demands agility and responsiveness. Business units often feel the need to adopt tools and platforms quickly to address immediate market opportunities or operational challenges, they often perceive traditional IT procurement and deployment processes as bottlenecks.
Secondly, the rise of low-code/no-code platforms has empowered business users to build and deploy applications with minimal IT involvement, further blurring the lines of demarcation.
Why Would IT Leaders Be Asking about Shadow IT?
I suspect that the majority of people asking about shadow IT are traditional IT leaders. This is understandable since IT leaders may be feeling out of control. They may be thinking about “shadow IT” due to the escalating complexities it introduces to their core responsibilities, and the increased complexity of technology and business.
They may be wondering about their role in the future, particularly with the emergence of no-code development tools, AI agents and agentic systems and the growth of edge systems able to support complex applications. They may also be feeling a bit threatened by cloud based applications that they didn’t procure or manage.
My advice to them is to stop thinking in terms of “shadow IT” and start – way overdue – thinking in terms of technology-enabled business. If you are thinking about business vs IT, you risk being rolled over by the pace of business change.
Stop Thinking of “Shadow IT”
The continued use of the term “shadow IT” perpetuates a siloed mentality. It positions the IT department as a gatekeeper and business units as circumventors. This can stifle innovation, create friction, and ultimately hinder an organization’s ability to adapt quickly to market changes.
The reality is that business users often possess a deep understanding of their specific needs and can identify technology solutions that directly address those challenges. Dismissing these initiatives outright risks losing valuable insights and opportunities for improvement.
Partnering in Innovation
To effectively navigate today’s hybrid business landscape including cloud, AI, edge computing, business lead applications, and business data centers, organizations must focus on fostering “partnered innovation”
Establish clear frameworks for governance and collaboration between IT and business units. This includes developing transparent processes for evaluating and integrating business-led technology initiatives, providing training and support to empower business users to adopt technology responsibly, and establishing cross-functional teams to drive digital transformation initiatives.
Partnering in innovation also means IT leaders need to learn to listen to business leaders, many of whom are experts in business processes, models and vision, and some of whom have leading expertise in emerging technologies, such as AI and agentic systems.
Bottom Line
The concept of “shadow IT” is a relic of a by gone era. To thrive in today’s technology-enabled business environment, organizations must move towards a model of partnered innovation.
By fostering collaboration, establishing clear guidelines, and empowering business users, organizations can harness the ingenuity and specific knowledge while maintaining necessary security and governance.
Traditional IT leaders must shift from control to enablement, recognizing that technology-driven progress can and should originate from all corners of the organization – or risk being perceived as an IT cost-center.
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