Fakultät Informatik und Mathematik
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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 Business-managed 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 quantitative–qualitative study to shed light on the success and failure of Shadow IT and Business-managed IT.
Two concepts describe the autonomous deployment of IT by business entities: Shadow IT and Business-managed IT. Shadow IT is deployed covertly, that is, software, hardware, or IT services created/procured or managed by business entities without alignment with the IT organization. In contrast, Business-managed IT describes the overt deployment of IT, that is, in alignment with the IT organization or in a split responsibility model. The purpose of this paper is to extend the conceptual understanding of Shadow IT and Business-managed IT, comparing the perceptions of 29 CIOs and senior IT managers with the results of a systematic literature review. By doing so, this paper presents a structured and comprehensive view of causing factors, outcomes, and governance of Shadow IT and Business-managed IT in practice. A comparison of academic literature and practitioner perceptions reveals the limitations and gaps of the current research and highlights avenues for future research. The authors find three category-spanning themes occurring as causing factors, outcomes, and—as part of governance measures—factors to improve the IT organization: (1) (Poor) business-IT alignment (2) (lack of) agility, and (3) (lack of) policies. This study is innovative with its comprehensive qualitative interview data that the authors compare to the existing literature. Therefore, the paper brings together theoretical and practical insights into Shadow IT and Businessmanaged IT, which should aid practitioners and scholars in decision making and future research.