Influence of Shadow IT on Innovation in Organizations

Silic, Mario; Silic, Dario; Oblakovic, Goran

doi:10.7250/csimq.2016-8.06

Cited by 15 publications

(20 citation statements)

References 36 publications

(46 reference statements)

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“…Fuerstenau and Rothe (2014) propose a method to discern "good" and "bad" Shadow IT systems based on their architectural embeddedness. Silic et al (2016) notes that leveraging users' innovation potential is often overlooked and needs to be addressed from an IT governance perspective.…”

Section: State-of-the-artmentioning

confidence: 99%

“…Considering the whole body of knowledge about Shadow IT, it is mostly viewed with a negative connotation, but both researchers and practitioners are increasingly dealing with its potential benefits . It can contribute to a company's innovative potential (Silic et al, 2016), lead to an increased organizational agility (Tambo and Baekgaard, 2013), or simply be a way to deal with shortcomings of corporate IT systems (Alter, 2014;Behrens, 2009). These aspects stand in contrast to the negative connotation of the term Shadow IT.…”

Section: Introductionmentioning

confidence: 99%

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Shadow IT and Business-Managed IT

Kopper

Fürstenau

Zimmermann

et al. 2018

International Journal of IT/Business Alignment and Governance

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Research on Shadow IT is facing a conceptual dilemma in cases where previously “covert” systems developed by business entities are integrated in the organizational IT management. These systems become visible, are thus not “in the shadows” anymore, and subsequently do not fit to existing definitions of Shadow IT. Practice shows that some information systems share characteristics of Shadow IT but are created openly in alignment with the IT organization. This paper proposes the term “Business-managed IT” to describe “overt” information systems developed or managed by business entities and distinguishes it from Shadow IT by illustrating case vignettes. Accordingly, our contribution is to suggest a concept and its delineation against other concepts. In this way, IS researchers interested in IT originated from or maintained by business entities can construct theories with a wider scope of application that are at the same time more specific to practical problems. In addition, the terminology allows to value potentially innovative developments by business entities more adequately.

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Section: State-of-the-artmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Shadow IT and Business-Managed IT

Kopper

Fürstenau

Zimmermann

et al. 2018

International Journal of IT/Business Alignment and Governance

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show abstract

“…Fürstenau and Rothe (2014) propose a method to discern "good" and "bad" SIT systems based on their architectural embeddedness. Silic et al (2016) have noted that leveraging users' innovation potential in the form of SIT is often overlooked and needs to be addressed from an IT governance perspective.…”

Section: Literature Reviewmentioning

confidence: 99%

“…A case is coded General [1] if it is predominantly associated with positive attributes. This includes settings that, for example, actively encourage joint initiatives between the IT department and the BUs that create new benefits for the entire organization (Silic et al 2016). Specifically, this can mean a possibility for low-cost innovation and the ability to respond to changes in business conditions rapidly (Tambo and Baekgaard 2013).…”

Section: General (Positive Case)mentioning

confidence: 99%

From Shadow IT to Business-managed IT: a qualitative comparative analysis to determine configurations for successful management of IT by business entities

Kopper

Westner

Strahringer

2020

Inf Syst E-Bus Manage

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Shadow IT describes covert/hidden IT systems that are managed by business entities themselves. Additionally, there are also overt forms in practice, so-called Businessmanaged IT, which share most of the characteristics of Shadow IT. To better understand this phenomenon, we interviewed 29 executive IT managers about positive and negative cases of Shadow IT and Business-managed IT. By applying qualitative comparative analysis (QCA), we derived four conditions that characterize these cases: Aligned, local, simple, and volatile. The results show that there are three sufficient configurations of conditions that lead to a positive outcome; one of them even encompasses Shadow IT. The most important solution indicates that IT systems managed by business entities are viewed as being positive if they are aligned with the IT department and limited to local requirements. This allows to balance local responsiveness to changing requirements and global standardization. In contrast, IT systems that are not aligned and permanent (and either organization-wide or simple) are consistently considered as negative. Our study is the first empirical quantitativequalitative study to shed light on the success and failure of Shadow IT and Businessmanaged IT.

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“…Thereby, we found three important factors. Shadow IT is often innovative, in terms of processes or even technology [6,52,54]. An IT integration might eliminate this innovation if done with few considerations [10].…”

Section: Analysis From a Switching Cost Dimensionmentioning

confidence: 99%

Conceptualizing Shadow IT Integration Drawbacks from a Systemic Viewpoint

Huber

Zimmermann

Rentrop

et al. 2018

Systems

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Business units are increasingly able to fuel the transformation that digitalization demands of organizations. Thereby, they can implement Shadow IT (SIT) without involving a central IT department to create flexible and innovative solutions. Self-reinforcing effects lead to an intertwinement of SIT with the organization. As a result, high complexities, redundancies, and sometimes even lock-ins occur. IT Integration suggests itself to meet these challenges. However, it can also eliminate the benefits that SIT presents. To help organizations in this area of conflict, we are conducting a literature review including a systematic search and an analysis from a systemic viewpoint using path dependency and switching costs. Our resulting conceptual framework for SIT integration drawbacks classifies the drawbacks into three dimensions. The first dimension consists of switching costs that account for the financial, procedural, and emotional drawbacks and the drawbacks from a loss of SIT benefits. The second dimension includes organizational, technical, and level-spanning criteria. The third dimension classifies the drawbacks into the global level, the local level, and the interaction between them. We contribute to the scientific discussion by introducing a systemic viewpoint to the research on shadow IT. Practitioners can use the presented criteria to collect evidence to reach an IT integration decision.

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Influence of Shadow IT on Innovation in Organizations

Cited by 15 publications

References 36 publications

Shadow IT and Business-Managed IT

Shadow IT and Business-Managed IT

From Shadow IT to Business-managed IT: a qualitative comparative analysis to determine configurations for successful management of IT by business entities

Conceptualizing Shadow IT Integration Drawbacks from a Systemic Viewpoint

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