Shadow digital transformation is an uncontrolled, unmanaged digital transition within an organisation, often driven by employees rather than management. It occurs when workers adopt digital tools without approval from the IT department, leading to potential security risks. The key driving forces behind shadow digital transformation include the need for speed, convenience, and a lack of understanding or trust in the IT department.
Shadow digital transformation can also be an incubator for innovation, providing a testing ground for new technologies. It can reveal what employees need to perform their jobs better, and can thus help shape a company’s official digital strategy.
Nevertheless, it carries inherent risks such as data breaches, compliance issues, and lack of control. To manage shadow digital transformation, companies should engage in open dialogue with employees, understand their needs, and provide them with the necessary tools. They should also establish a digital governance framework and invest in cybersecurity measures.
While shadow digital transformation can be a double-edged sword, it is an inevitable part of today’s digital landscape. Companies need to recognise and manage it effectively to harness its potential benefits and mitigate its risks.
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