What is Digital Sprawl?
You may not have heard of the term 'digital sprawl', but chances are, you've experienced it and probably even contributed to it! When we use the term 'digital sprawl', we're referring to the unchecked growth of digital assets within an organisation, like software applications, data, and IT infrastructure.
As organisations quickly adopt new technologies to stay competitive, this has become more commonplace. Cast your mind back to 2015, a year when Jeremy Clarkson infamously punched a producer, Zayn Malik broke hearts across the world by leaving One Direction, and businesses on average had a mere 8 SaaS applications. Fast forward to today, and not only is Jeremy Clarkson now the nations favourite farmer, but the number of SaaS tools in use per business has skyrocketed to an astonishing 80. While technology has become the norm in many organisations, the decentralised management of these digital resources can lead to significant challenges in security, compliance, and operational efficiency, ultimately hindering organisations from reaching their full potential.
At Yopla, we specialise in digital transformation and help organisations manage digital sprawl effectively. In this article, we’ll explore what digital sprawl is, its implications, and share some practical tips to help you tackle it.
What is Shadow IT?
Another term you might not have heard before, which we're going to use throughout this article, is "shadow IT." Simply put, this refers to using technology systems, devices, software, applications, and services without the visibility of the person or team within the organisation who is responsible for IT.
People often turn to shadow IT to boost their productivity and find more efficient ways to get their work done. For example, someone might use a new project management tool they discovered online or store files on a personal cloud service because it’s more convenient. While these intentions are usually good, shadow IT introduces significant risks to any organisation.
Firstly, there are security risks. When the IT team doesn’t know about these unapproved tools, they can’t make sure they’re secure. This could lead to potential data breaches and cyber-attacks. Secondly, compliance issues arise. Many industries have strict rules about how data should be handled and stored. If people use unauthorised tools, the organisation might unknowingly break these rules, leading to hefty fines and legal trouble. The same compliance issues also mean that best practice, and your valuable IP, is likely being ignored. Getting everyone on the same page is key to identifying and resolving challenges and driving your organisations success.
On a practical level, when data is scattered around the organisation, it can cause confusion and make it harder to provide the best service to clients, as others might not know what’s been done or where information is stored. The more shadow tools that are in use, the more likely this is to be the case.
Causes of Digital Sprawl
Decentralised Responsibilities: A Recipe for Chaos
Imagine if, the next time you left the house, you returned to find that everyone you live with had decided to organise the kitchen entirely their own way. One person has put the pans in the fridge, another thinks plates are better kept above the oven, and the spices have been relocated to a box on the kitchen table. Sounds chaotic, doesn’t it?
Well, that’s essentially what happens with digital sprawl. Different people, departments or teams adopt their own preferred tools and methods. While this might work well for them in isolation, it creates a significant mess for the organisation as a whole. For instance, the marketing team might use one project management tool, while the administrative team relies on another. Before you know it, you have a jumble of systems that don’t integrate, with information scattered everywhere. It’s like trying to prepare dinner in that newly ‘organised’ kitchen—pretty much impossible!
Shadow IT: The Sneaky Culprit
When employees turn to unauthorised apps or services, they inadvertently sidestep the organisations oversight. And this "Shadow IT" phenomenon is more prevalent than you might think - studies show that 67% of employees at Fortune 1000 companies use unapproved SaaS applications. Without the proper checks and approvals these applications can pose significant risks - many of them may have security flaws which allow bad actors access to everything you store and use within them. Think of it like leaving your front door to your home not just unlocked, but wide open. Yes, it might seem more convenient in the short term, but it exposes the entire organisation to significant risks.
The implications of shadow IT are far-reaching, opening up a Pandora's box of security vulnerabilities and compliance challenges. Unauthorised tools often lack proper encryption, leaving sensitive data exposed to potential breaches. What's more alarming is that 69% of employees admit to knowingly bypassing cybersecurity guidance, massively compounding the problem.
The scale of this issue is overwhelming IT departments. Only 12% of surveyed IT teams feel they can keep pace with the rapid proliferation of shadow IT.
This gap between employee behaviour and IT oversight is a significant contributor to an ever-growing digital sprawl.
The Old and The New: A Complicated Relationship
Another contributor to digital sprawl is the tricky balance between legacy systems and newer technologies. Think of it like trying to get your Gran's old radio to sync with your smart speaker—both might be great on their own, but they don't exactly work well together. As technology evolves, what was once cutting-edge can quickly become outdated.
Many organisations find themselves needing to maintain older systems, either for regulatory reasons or because they remain critical for certain operations. At the same time, they must adopt new technologies to stay competitive. This creates a complex IT landscape that can be challenging to navigate and manage effectively.
Often, people try to build on top of these existing systems to improve functionality, resorting to shadow IT to compensate for the shortcomings of legacy systems. The result is a tangled web of systems and applications that are difficult to integrate and manage, exacerbating the issues of digital sprawl.
Impact of Digital Sprawl on Businesses
The implications of digital sprawl are far-reaching and can significantly impact a business's bottom line. From a financial perspective, it often leads to excessive licensing costs and underutilised software.
According to WalkMe's 2022-2023 State of Digital Adoption Report, large enterprises found that approximately 30% of their applications are either redundant or provide no clear value.
For smaller businesses, which often lack dedicated IT teams, this percentage could be even higher, potentially wasting precious resources that could be better allocated elsewhere.
Unseen Usage
The hidden world of shadow IT also rears it's head back up to pose additional challenges. Research indicates that 41% of employees use technology that IT departments cannot see, with this figure projected to rise to a staggering 75% by 2027. This unseen technology usage not only creates security vulnerabilities but also leads to inefficiencies, making it increasingly difficult for businesses to operate smoothly and safeguard their valuable data.
Inefficiencies
Operational inefficiencies frequently arise as employees toggle between different applications with 68% of us moving between 10 different applications an hour, costing up to 60 minutes per day in clicking between different software! These disparate systems often struggle to integrate seamlessly, adding to the tangled web of digital sprawl.
Security Risks
Security risks are heightened due to the increased attack surface from multiple software entry points, making it challenging to maintain consistent security protocols across all applications.
According to IBM, 40% of data breaches involve data stored across multiple environments. The scariest part? In 2024, the global average cost of a data breach has reached an all-time high of $4.88 million USD!
There's a serious issue around compliance too. Gartner predicts that by 2024, 75% of organisations will face audits for privacy laws, leading to potential fines and legal challenges .
Data Governance and Compliance
Data management issues, like data silos and inconsistencies across different systems, can really add to the challenges organisations face with digital sprawl. Imagine a company where the finance team uses one system to track payments, while the sales team relies on another. This lack of integration can lead to duplicated efforts and miscommunications. For instance, the finance team might mark a payment as complete, but the sales team remain unaware so continue to follow up with the client for payment.
Information Hunting
This situation means teams end up spending more time reconciling data instead of focusing on their core tasks, which can hurt productivity and decision-making. Studies show that employees spend an average of 12 hours a week just searching for data because of these silos, so it's no surprise that only 22% of business leaders feel their teams share data effectively, which leads to inefficiencies and increased operational costs. Plus, 76% of companies say that data silos get in the way of internal collaboration, and 74% view this as a competitive disadvantage.
Digital Knowledge and Skills Gaps
As organisations embrace new technologies to stay competitive, they often end up with a digital toolbox that's bursting at the seams. It's like giving someone a Swiss Army knife with 100 different tools—it may be impressive, but it can be overwhelming to figure out which gadget does what. This rapid adoption of diverse digital tools has created quite a challenge for team members who are expected to keep up.
Even something as straightforward as communicating with colleagues ends up being difficult. With the average person using four communication apps to stay in touch, it's no wonder employees often find themselves scratching their heads, unsure of how to use tools effectively. This leads to a lot of inefficient fumbling around, with studies showing that employees spend an average of 22 minutes a day dealing with IT-related issues—that's nearly two hours a week!
The digital landscape is always evolving, with new apps and updates popping up faster than you can say "software update." While this constant innovation is exciting, it also means that employees need ongoing training to stay up-to-date and often organisations will end up with some people trained in one tool, others in another, and no consistency across the board. This creates significant skills gaps and can lead to key person dependencies. For example, if someone responsible for a critical task is unable to come to the office one day, it’s likely that their absence could stall important projects and disrupt workflows.
Fragmentation of Workflows
Digital sprawl also leads to fragmented workflows where everyone ends up using multiple, often redundant, applications to get their work done. This kind of fragmentation can cause confusion, slow down productivity, and create bottlenecks in business processes, making it hard to get anything done smoothly.
These fragmentations impede collaboration and communication within teams. It's like trying to have a group conversation where each person is speaking a different language. When team members aren't using the same tools or platforms, sharing information becomes a challenge. This can lead to misunderstandings, missed messages, and a general sense of disconnection, which ultimately hampers teamwork and the overall flow of information within the organisation.
The inconsistency in tool usage greatly affects both the efficiency and morale of the team. When employees spend more time figuring out which tool to use for each task, they lose precious time that could be dedicated to productive work. This confusion disrupts workflows, as everyone ends up using different applications to accomplish similar tasks. Without a clear, business-wide strategy, it becomes challenging to establish standard practices, leading to misalignment and frustration.
This lack of uniformity can prevent the team from fostering shared goals and a strong sense of collaboration. When team members are not using the same tools or processes, it can create silos and feelings of isolation, making it harder to work together effectively.
Mitigation Strategies
So, we've looked at digital sprawl, shadow IT, and the problems they cause, but how can you combat these challenges effectively?
Digital Mapping
Conducting a thorough overview of your organisation is crucial to determine what’s happening across the board. This process, known as digital mapping, helps you identify where shadow IT is hiding and ensures you have a clear picture of your digital landscape. Always use an expert for this.
At Yopla, we specialise in digital mapping exercises and can guide you in the right direction to get a comprehensive overview of your digital environment.
Centralised Oversight and Knowledge Management
Establishing a governance framework is essential for effectively managing digital tools and applications, and it all starts with ensuring that every piece of software is approved and monitored by a central authority. A vital part of this framework is a centralised knowledge management system, often called a "single source of truth" or knowledge base. This system should provide easy access to training materials, best practices, and troubleshooting guides. It helps maintain consistency across the organisation and empowers employees to tackle problems on their own, which in turn lightens the load on IT support.
Research shows that nearly 70% of people believe a centralised knowledge base would enhance their workflow, and we've seen time and time again that a well-implemented knowledge base can really boost organisational efficiency by offering a simple, accessible location for all the information employees need, allowing them to work more effectively and spend less time searching for answers.
If you'd like some guidance on where to start with finding the best solution for your team, get in touch and we'll be happy to help!
Encourage a Culture of Honesty
It’s important for employees to feel comfortable admitting to using shadow IT.
Recent research found that 83% of organisations have tech being used that hasn't been authorised, so understanding why people resort to these tools can reveal gaps in your current systems or training needs.
At Yopla, we assess organisational culture and skills in a digital context to identify areas for improvement. By fostering an open environment, you can address these issues head-on and ensure your team feels supported and confident with their IT and tech tools.
Employee Training
Implement comprehensive training programs tailored to the specific needs of different teams. Encourage continuous learning and provide resources for self-paced learning. Studies show that well-trained employees are more productive and less likely to resort to shadow IT, so always ensure everyone feels empowered to request training as needed and that there is a robust training program in place for new hires.
As part of our Digital Maturity Assessments, we evaluate your current training programs and gather feedback from your team to understand their perspectives. We're always on hand to provide advice and support to enhance your training initiatives.
Conclusion
Digital sprawl presents significant challenges to modern organisations, impacting security, compliance, operational efficiency, and overall productivity. As we've discussed, the unchecked growth of digital assets and the use of unseen shadow technology creates a chaotic and risky environment for any business.
However, by understanding the causes and effects of digital sprawl, and implementing targeted mitigation strategies, organisations can regain control over their digital landscape. Digital mapping, centralised oversight, fostering a culture of honesty, and tailored employee training are all crucial steps in this process.
At Yopla, we specialise in helping businesses navigate these complexities. Our expertise in digital transformation, coupled with our comprehensive assessments and tailored solutions, ensures that your organisation can effectively manage digital sprawl. By creating a structured and secure IT environment, you can optimise your operations, safeguard your data, and empower your employees to achieve their full potential.
If you're ready to tackle digital sprawl and enhance your digital maturity, we're here to help. Contact us today to learn how we can support your journey towards a more efficient, secure, and productive digital future.
