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May 24
2010

Is Enterprise IT Becoming A Dinosaur?

Posted by epearlman in virtualization technologysecurityinnnovationenterprise ITemployee-owned computerscorporate ITcontrolconsumerization of IT

epearlman
 For years corporate IT drove technological innovation - and had the huge budgets to prove it. Those days are largely over and now innovation is coming from the consumer market in the form of new devices, applications and means of access. Are IT departments ready for this change or are they in danger of staying behind their firewalls and becoming dinosaurs, unable to serve the needs of their employees?

 

According to four Booz & Co. authors, in an article ("Friendly Takeover: The Consumerization of Corporate IT") in the Booz publication Information Technology Foresight, "The dikes built by corporate IT departments to protect their companies from the outside world...and to restrict employees from the distractions of the Internet are springing ever-larger leaks." Employees, especially younger, Web savvy ones, are demanding the right to use new devices to do their jobs. Refusing to do so, the authors say, "is not a winning strategy," since it can lead to a loss of employee morale, loyalty and innovation.

 

The authors go even further, "The efforts of corporate IT departments to maintain perimeter security by exerting tight control over their networks is ultimately doomed to failure. Instead, CIOs must get ahead of the consumerization curve by coming to terms with what is valuable and productive about the influence of consumer IT on corporations and then devising strategies to make it work."

 

But IT needs a plan before embarking on a new approach to corporate IT. The authors see two approaches to the integration of consumer IT:

 

  • "Bring in" strategy - involves opening corporate IT to private use. Employees are given a wide degree of individual choice about the devices they can use and corporate policies regarding use of the Web and corporate applications are loosened. Employees can configure their own working environment and install private applications on their devices.

 

  • "Reach out" strategy - involves allowing employees to use their personal devices to do their work. Virtual machines or virtual clients are installed on employee-owned PCs to provide the corporate computing environment that is needed. Control is maintained by installing low-level hypervisors on all hardware. (The authors note that vendors are starting to address this with solutions based on virtualization technology, such as MokaFivePlayer.)

 

Of course, there are risks involved in making a shift to a more open consumer model, most notably security, productivity, legal and compliance issues, and potentially higher costs and complexity. Employees too must be made aware of the risks they could face, such as legal liability for violation of licenses or copyrights.

 

The authors provide a helpful tool to help IT assess their company's readiness to start down the road of consumer IT and a model to help choose the right approach for your organization. They also recommend testing any approach out with a pilot program.

 

Citrix Australia did just that to test the value of employee-owned computers. The pilot involved 300 employees, each was given a stipend of $2,100 to buy a computer and pay for a mandatory 3-year service agreement (half choose PCs, half picked Macs). A virtual private network provided access to the corporate environment. The results were strong: costs to maintain computers were minimal, attrition rate of computers declined, and employees were more productive than their peers.

 

Whatever course your organization takes it is worth remembering that over time, more and more computer savvy employees will join your organization and they will expect an open environment that gives them choice and allows them to integrate their work and personal lives in more ways. According to Gartner, by the middle of 2010, 15 percent of workers will use employee-owned notebooks as their primary device at work.

 

As the Booz authors note, "Companies that don't make the move face a future in which employees will do it stealthily, using their own consumer devices to get their work done, with no input from management at all." Now that's not a pretty picture at all.

 

 

 

Comments (3)Add Comment
Rob Vargas
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written by Rob Vargas, May 26, 2010
IT needs to adjust, yes. But I abhor the title here. Consumerization is a real force, but so is Sarbanes-Oxley, so is PCI-DSS. And on and on. My employer has customers governed by industry specific cyber-security regulations and data restrictions.

If a VHD can simply be taken off the computer and run on another hypervisor, that's a problem. And yes, answers exist out there. But the point is that permissiveness isn't the only viable option here.

IT can and must partner with the workforce to help employees attain that balance they seek, the balance between an "always on" work expectation, and a personal life. And there *does* need to be flexibility. But sometimes, IT needs to say no.
0
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written by Sylvain Pendaries, May 28, 2010
I agree with the previous comment. There are a lot of federal regulations or company internal policies which require full audit trail or prevent employees from performing sensitive activities outside of premises (for example).
The push for more latitude towards additional devices (whether desktop or mobile) is logical given the breadth of choice for personal usage. But it doesn't address any of federal/state/local or company requirement.
Therefore it will be back to a combination of companies' executives and IT staff to explain the limits/risks that they're willing to take for the good sake of their company.
Tom Hoffman
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written by Tom Hoffman, May 30, 2010
Recognizing the regulatory and compliance concerns that have been cited, there are some ways for enterprise IT organizations to explore the potential for creating consumer-inspired applications.

For instance, some CIOs I know in the hospitality and retail industries maintain small R&D budgets (very small!) which allow members of their staffs to noodle with potential consumer-facing applications. Examples of these include developing iPod or smartphone-type apps that provide promotional alerts to valued customers when they're on premise at one of their resorts or in one of their stores.

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