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Business units are increasingly able to fuel the transformation that digitalization demands of organizations. Thereby, they implement Shadow IT (SIT) to create flexible and innovative solutions. However, the individual implementation of SIT leads to high complexities and redundancies. Integration suggests itself to meet these challenges but can also eliminate the described benefits. In this emergent research, we develop propositions for a conceptual decision framework, that balances the benefits and drawbacks of an integration of SIT using a literature review as well as a multiple-case study. We thereby integrate the perspective of the overall organization as well as the specific business unit. We then pose six propositions regarding SIT integration that will serve to evaluate our conceptual framework in future research.
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.
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.
Research on Shadow IT is facing a conceptual dilemma in cases where previously "covert" systems developed by business entities (individual users, business workgroups, or business units) are integrated in the organizational IT management. These systems become visible, are therefore 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 department. This paper therefore proposes the term "Business-managed IT" to describe "overt" information systems developed or managed by business entities. We distinguish Business-managed 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, value-laden terminology is complemented by a vocabulary that values potentially innovative developments by business entities more adequately. From a practical point of view, the distinction can be used to discuss the distribution of task responsibilities for information systems.