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INTRODUCTION Impact of Digitisation Since PM Modi’s Digital India and
All these effects of digitisation are
Startup India campaigns, there has
also entering enterprises. While the
been an increased focus in govern-
IT departments not always approve
ment departments to increase the
of the new devices and apps en-
level of digitization. Projects such as
tering into the market, consumer
digitization of land records, courts,
adoption has led them into the office
transport and police departments
environment.
are happening at a fast pace. Thus Shadow IT is also an outcome Integration of Aadhaar into LPG sub-
of digitisation of enterprises. Shad-
sidy and other departments is hap-
ow IT is a term often used to de-
pening to control leakage.
scribe such information-technology systems and solutions built and used
The various central and state e-gov-
inside organizations without explicit
ernance initiatives to digitise the re-
organizational approval. Thus uncon-
cords have started to have an impact
trolled digitisation can have harmful
on daily lives of India’s citizens.
effects, as well.
On the other hand digitisation of
ShallowIT is the opposite of Shad-
analog devices and appliances with
owIT. Organisations tend to block or
internet is changing our lives for the
limit access to certain applications.
better.
They insist that employees only use company-approved products.They
As broadband speeds become seam-
do so even if more efficient alterna-
less, Indian consumer is entering
tives are available.
an age where he is buying internet enabled refrigerators, TV, bulbs,
Under Shallow IT, often organisa-
cars, cameras, air purifiers and even
tions realise the worth of these alter-
entire homes.
native new applications. Under this 2
moneycontrol concept, organisations often introduce technologies in systems that do not handle sensitive information. Overall, digitisation is going to change our lives drastically in the coming years, and is unlikely anyone can remain detached from it for very long.
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HOW INTERNET OF THINGS MAKES YOUR LIFE EASIER & MORE PRODUCTIVE With features and tools that enable remote access, machine-to-machine learning, monitoring utilities and improved security, Internet of Things platform can make your life simpler, easier and more productive.
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WHY CIOs SHOULD FOCUS ON SHALLOW IT CIOs need to be willing to experiment and open to collaborative technologies. They need to convert these technologies into secure platforms. Cyber security has been a major
They need to convert these
concern for a while now. The reason
technologies into secure platforms.
for this is not the number of files stored and transferred. Rather, the
In other words, they need to focus on
concern stems from the applications
Shallow IT. What does that entail?
used for the same. The unsanctioned use of file-sharing applications
Allowing technologies meet
is risky. It is an open invitation to
business needs:
malware attacks. It could also lead to
CIOs play an important role in
unauthorised access of confidential
ensuring ethical usage of technology.
data online.
The IT department can do justice to this only if the available technology
How can Chief Information Officers
meets evolving business needs.
(CIOs) avoid this risk? CIOs can avoid
For example, the IP messenger and
using third-party apps and restrict
Dropbox are third-party apps. But
employees from using them. CIOs
they can be secure applications as
need to be willing to experiment and
well. How? Real-time tracking of
open to collaborative technologies.
data downloads of registered IPs
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moneycontrol is the answer to this. Continuous
IT to Shallow IT. Cloud applications
feedback from employees and CEOs
match the trend of work on the go
is important. It can help CIOs combine
and networking in a co-working
technology and meet business needs.
space. ‘IT needs to feel comfortable with experimentation,’ said the CIO
Encourage use of upgraded software:
of Clorox Ralph Loura. Shallow IT
CIOs need to revise IT policies and
emphasises the need to experiment
upgrade the systems in a timely
with technologies that can deliver
manner. Compatibility and making
value and efficiency.
procurement decisions can create value for work. It can increase the
Empower the company:
efficiency of machines.
IT companies focus on procuring hardware, says a Forbes report.
Protect sensitive data:
The CIOs are highly dependent on
Employees accept End User License
data centers and third-party cloud
Agreements legally without even
providers. Storing huge amounts of
reading the terms and conditions. This
data on public platforms could result
could also mean giving third-party
in a cloud stack. So, the IT department
apps the permission to access your
needs to deal with technical issues and
online accounts.
technology upgradation.
Create a customised Cloud :
The IT department need not focus on
There is always a possibility of data
solving the technical issues. Instead, it
leakage while using third-party
should guide CEOs in exploring better
cloud applications. CIOs can set up
options for securing data on the cloud
a customised cloud service for the
and on personal devices.
respective company. This creates an easy way to track and ensure exchange of data between devices. Enable better efficiency in coworking spaces: The ongoing trend of co-working spaces and entrepreneurship in India demands a shift from Shadow
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DIGITAL INDIA 2.0: THE NEXT PHASE OF E-GOVERNANCE IN INDIA ‘What’s in store for IT companies looking for newer contracts from governments? The next phase of e-governance in India and how big will it be for IT sector?’ India e-Governance 2.0
will be many more opportunities for IT
Earlier this year, Bill Gates visited
companies. The industry bigwigs are
Bengaluru. He got to know about
all here to take part in the India growth
India’s efforts to take e-governance
story. But the biggest gainers could
to the masses. The Microsoft
be the local start-ups. The digitisation
Founder and Technology Advisor was
project would need broadband
impressed. He said few countries
infrastructure, identity solutions, and
can boast of a digital infrastructure
payment systems. The possibilities are
as sophisticated and solid as the one
limitless for tech companies. Infosys
India was building.
co-founder Nandan Nilekani has been a key architect in driving the digital
India is ready to leapfrog into the next
India initiative. He has been rooting for
level of digitisation. Once it does, there
Indian start-ups to make the most of
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moneycontrol this wave. Many spaces have opened up under the digital India initiative.
Open API policy and India Stack
These tech companies need to spot
The digital India initiative is a
these spaces and plug in.
revolutionary programme. It seeks to involve the innovation talent of the
Opportunities galore
nation to take government services to
Commerce and banking are going
the masses. Besides, the government
online and mobile. So, the threat
has rolled out an open API policy.
of data leaks and hacks is sure to
This is a publicly available application
increase. That is why cyber security
programming interface (API). It
could be one area of concern.
provides programmers with access
Healthcare is undergoing digital
to a propriety software application.
transformation globally. In India,
This set of open API is the India
telemedicine and remote health will
Stack. It should ease up integration
play a huge role in driving access to
of mobile applications with the data
quality healthcare.
securely stored and provided by the government to authenticated apps.
The government’s thrust on creating 100 Smart Cities is another big
Stage set for programmers in
opportunity. The Smart Cities will
India Stack is a complete set of API
need new infrastructure. The various
for developers. It includes:
public sector departments will have to go online. Tech companies will also
1. Aadhaar for authentication,
need to provide a bouquet of services
2. e-KYC documents (safe deposit
to citizens. All this holds significant
locker for issue, storage, and use of
potential for technology companies to
documents),
work with the government.
3. e-Sign (digital signature acceptable
under the laws), New horizons
4. a unified payment interface (for
There are also emerging technologies
financial transactions), and
like 3D printing, robotics, and artificial
5. privacy-protected data sharing
intelligence. The digital India initiative
within the stack of API.
offers a solid platform for preparing citizens and businesses to benefit from
The India Stack could open up many
them.
opportunities in financial services,
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all legal documents in a digitized
India Stack, developers and tech
format. You store these documents
start-ups can build software and
online and can access them from
create businesses around the readily
any part of the country. The e-Sign
available infrastructure. That would
makes it easy to sign deals, contracts,
open up a huge potential to tap into
and legal documents through
the booming smartphone market in
smartphones. Meanwhile, the Unified
the country. The consumer market in
Payment Interface lets people make
India is huge. So, these start-ups could
payments through their smartphones
get institutional funding and gain from
from anywhere.
the early mover advantage. Time to act is now Got a brainwave? Bingo!
The documentation and sample code
India Stack creates a user base of
have arrived. Tech entrepreneurs
over a billion people readily available
and start-ups can start innovating,
through its API. Start-ups and tech
prototyping, and building India Stack-
companies can build over this to
enabled applications. The commercial
integrate various functions for their
applications are endless with multiple
businesses or for larger enterprises.
opportunities. The large user base
Banks or telecom operators scan tons
opened up by India Stack is nascent.
of paperwork every day. They need
It is solution-hungry and largely
to verify customers and generate KYC
untouched by technology.
documents. What if you could digitise this? An application could integrate
Now even a local vegetable trader can
India Stack and the user base of over a
get an instant intra-day loan through
billion Indians. The opportunity is right
his mobile phone. He can pay it back
here.
the same or the next day without physically visiting the bank. There
There are so many digitized elements
is no need to waste any time with
now. You have the e-KYC, e-Sign,
their e-KYC documents and digital
digitized Aadhaar information, and
signatures. Loan processing happens
digital locker. The entire ecosystem
in minutes. The money is transferred
has become a presence-less,
through the Unified Payment
paperless, and cashless system. A
Interface. Long queues at banks,
digital locker enables users to preserve
telecom offices, and government and
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moneycontrol non-governmental processes could soon disappear. Word of advice But the Infosys co-founder has some advice for tech companies, especially start-ups. The man behind Aadhaar says that not every entrepreneur will succeed. But they will gain tremendous experience and can found another startup, if they fail. There might be some challenges on follow-on funding for very large firms, says Nilekani. It is an exciting time if you look at the bigger picture. The future looks promising as many start-ups set up shop. Their quality is also increasing with several doing interesting things. Tech companies at one point were trying to replicate in India business models that succeeded in other markets. But they have changed their stance, which is heartening. The effort is now on developing India-specific products. The government is doing what it can to support the ecosystem in the next phase of digital India. It is now up to the tech companies and investors to make the most of the digital boom in India.
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ALL YOU NEED TO KNOW ABOUT ‘SHADOW IT’ Shadow IT happens when a company’s employees work in a parallel IT environment without the knowledge of its IT department. It is also called ‘rogue deployment’ or ‘stealth IT’. Employees may use systems, software, or applications the company does not provide. The aim is often to increase efficiency or to save cost. All you need to know about
knowledge of its IT department. It
‘shadow IT’
is also called ‘rogue deployment’
Have you ever used for official
or ‘stealth IT’. Employees may use
purposes any software or app not
systems, software, or applications
approved by your company’s IT
the company does not provide. The
team? If your answer is ‘yes’, then
aim is often to increase efficiency or
you have used shadow IT.
to save cost.
Shadow IT happens when a
According to cloud access security
company’s employees work in a
broker Skyhigh, IT cloud usage in
parallel IT environment without the
organizations is often 10 times
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moneycontrol the size of sanctioned IT! Shadow
to work. These include the ones
IT can increase organizational
that store sensitive information.
efficiency. But it can also expose a
Companies have little influence over
company to critical data security
the devices or services employees
risks. This is especially true today
use personally. As a result, IT
when organisations storeswaths of
departments are often clueless
dataand integrate their systems.
about the technologies employees are using.
Why employees use it Skyhigh attributes the rapid growth
The risks it brings
in shadow ITto the availability of
Shadow IT can expose an
high-quality SaaS (Software as a
organization to grave privacy and
Service) and cloud-based apps.These
data security risks. Loss of IPs,
include file-sharing apps, social
violation of regulatory needs, and
media, and collaboration tools.Both
exposure of secret staff and client
individual employees and business
information are the main among
units use these.
those. In-house IT departments make a lot of effort to maintain
IT departments no longer have the
a secure IT environment. They
control they had on an organization’s
are particular about identity
technological decisions. Enterprise
management, compliance
networking expert Andrew Froehlich
documentation, licensing, access
pointed this out in an Information
authorization, and data back-
Week article. The reason for this is
up.When employees use rogue
the rate at which new technologies
deployments, the IT department
hit the market now. IT departments
loses control over data. Data
cannot offer these technologies at
becomes vulnerable because
the same rate. Tech-savvy employees
external cloud service providers are
get those themselves instead of
not always rigorous about security.
waiting for their IT departments.
In extreme cases, use of external IT resources can put a company in breach of data security regulations.
Another reason is the ‘Bring Your Own Device’ phenomenon, Froehlich pointed out. Many companies let
How to cope
employees bring their own devices
Skyhigh recommends four steps for
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moneycontrol organizations to bring shadow IT
policy breach based on the nature
under control:
of cloud service used, the risk level,etc.
1. Gain visibility and understand
4. Enablement: Organizations are
the opportunities to mitigate
not averse to employees using
risk: A good starting point could
alternative cloud services. They
be to understand the rogue
are only wary of the security
services employees use, and the
risks. To become an enabler,
extent of their use. Since rogue
organizations may assess the
cloud usage is high, Skyhigh
risks of all cloud services. Using
suggests that companies should
monthly trends, they could
reportemployee cloud usage
promote the ones they are ready
every month. The report may
to adopt. According to Skyhigh,
include the risks, the amount of
an average company uses 171
data uploaded,and the number of
cloud collaboration services.
users of these services.
This increases the costs and the
2. Define policies and the
potential risks of using the cloud.
remediation process:
It also hinders collaboration
Companies mustcreate well-
between teams. Companies can
defined IT policies that spell out
reduce these by avoiding the use
the authorized cloud services.
of several cloud services under
An effective mechanism
one category.
to measure and close the enforcement gapsmust back the policies. The policy must also encourage employees to use approved alternatives to rogue deployments. 3. Put policies in place: Companies
may ensure policy compliance by taking certain measures. These could include alerts to detectbreaches at once and limit the damage. Companies could sort and focus on incidents of
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5 FACTORS CONTRIBUTING TO THE RISE OF SHADOW IT Troubled by increasing shadow IT problems in your company? To look for solutions, you must first know the reasons that lead to it. So come, let us first learn how shadow IT found its way into organisations. Troubled by increasing shadow IT
importance because of its expertise
problems in your company? To look
in technology and its promise of
for solutions, you must first know
protection against threats.
the reasons that lead to it. So come, let us first learn how shadow IT
10 to 15 years ago: The changing
found its way into organisations.
business scenario meant that every employee had to have a
20 years ago: Technology was a
desktop. The threats associated
rare resource. Offices had limited
with technology, i.e. data security,
computers,which were allotted
also increased. IT departments
only to the senior management.
formulated IT policies to ensure
The IT department gained
data protection. But that also meant
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control over technology.
IT policy. But now, business teams 5 years ago: Technology became
have several options and sources.
a necessity. Companies that could
They can explain their need to the
not adapt to changing technological
business head and get it on their
developments perished. The rigid
own.
approach of IT teams and easier access to technology gave rise to
Redundant solutions
shadow IT.
Technological developments happen every minute. To stay in the game,
Here are five reasons that can
business teams need upgraded
make employees bypass IT
solutions. These need not be
teams to setup IT systems and
exclusive, but at least must match
applications (i.e.shadow IT):
the existing trends. But what if your business team was still stuck with an
Lengthy approval process
obsolete system? Its members would
To get software or hardware, or
just go for shadow IT. If the IT team
to make a change in the existing
does not deliver modern solutions,
system, business teams need the
employees are likely to source those
IT team’s approval. A hierarchy
themselves.
reviews the application and shares its views at every level. There might
Unclear IT policy
be a situation of too many approval
The IT policy is expected to provide
requirements and fewer employees.
solutions to IT-related problems and
But that cannot be a reason for the
queries. Most of the time, requests
IT team to ignore the urgency of
fornew systems or software are held
thebusiness team.
up if those do not fit the company’s IT policy. You are just giving a
Frequent rejections from IT
chance to non-IT teams to fend for
If the IT team thinks that a resource
themselves.
is unnecessary or harmful, it rejects the application. Earlier, business
Rise in SaaS
teams had their hands tied due to
Under the IT team,employees
lack of expertise and sources. Even
struggled to find solutions to their
today, most IT teams do not approve
technological needs. Then came the
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moneycontrol era of SaaS, which gave employees solutions and freedom. Easy availability of software by buying a licencefor a pre-defined duration led to shadow IT. Sharing and storage of data became convenient with cloud computing. SaaS provides modern solutions with exceptional service. Entities that provide SaaS appoint a manager 24x7 to solve problems. Bottomline Shadow IT arises due to inefficiency and ineffectiveness of in-house IT teams. Quite often, solutions that the IT team does not approve meet the needs of business teams better than the approved ones do. You can control shadow IT by creating a flexible IT policy and adopting emerging technology.
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