What is the Consumerization of IT? - Understanding a Global Phenomenon

Gartner predicted in 2005 that the consumerization of IT is going to be the most significant trend of the coming decade. Seeing as we don’t carry around Blackberrys for work anymore, it’s evident that the prediction has come true.

With employees preferring to use personal devices and organizations worried about security, let’s unpack the various aspects of consumerization of IT by asking some critical questions:

• What is the consumerization of IT?

• What are the reasons for the consumerization of IT?

• What are the challenges with the consumerization of IT?

• What are the benefits of the consumerization of IT?

• How can organizations address the consumerization of IT?

What is the consumerization of IT?

Consumerization of IT is the cycle of users adopting consumer technology in their personal lives, which then extends into usage for work, and organizations finally adopt these technologies. This can be seen clearly in consumer technology makers forking their products and services into business-centric variants.

What are some examples of IT consumerization?

• Gmail

• G Suite

• WhatsApp

• WhatsApp Business

• Dropbox

• Dropbox Business

• Microsoft Office 365

• Microsoft Office 365 Business

Obviously, the consumerization of IT is a global, pervasive phenomenon, and businesses have taken note of it. Let’s understand why it’s taking place:

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How does IT consumerization work?

IT consumerization is an influential trend that sees new information technology (IT) emerging in the consumer market before entering business and government organizations. Previously, businesses and organizations were the first to adopt new technologies.

Rapid technological advancements, an emphasis on user experience, and the increasing demand for flexibility and accessibility are driving this phenomenon. Smartphones, tablets, and cloud services are prime examples that have transitioned from consumer favorites to essential tools in professional environments.

IT consumerization often starts with employees using their personal devices or consumer applications for work purposes, a trend known as Bring Your Own Device (BYOD). These practices result in adopting more consumer-oriented solutions in the workplace, driven by employees' expectations for ease of use and convenience. 

While BYOD can spur innovation and enhance productivity, it also introduces challenges around security and compliance with regulatory standards.

The benefits of IT consumerization include increased employee satisfaction and productivity. In other words, tools that are easier to use tend to be more readily adopted and can improve work efficiency. Furthermore, organizations open to embracing new technologies can attract talent more efficiently and foster a culture of innovation. However, integrating consumer technology into the workplace poses security risks and management challenges, primarily if these technologies are not adequately managed or conflict with regulatory requirements.

To effectively navigate the consumerization of IT, organizations need to develop clear policies around BYOD, acceptable use, and security. Investing in security measures such as encryption, two-factor authentication, and mobile device management (MDM) solutions is crucial to protect sensitive information. 

Embracing flexibility by incorporating consumer technologies in a secure and managed manner can help organizations leverage the benefits of IT consumerization while minimizing potential drawbacks.

Pros of IT consumerization

The consumerization of IT has fundamentally transformed how organizations conduct business. IT consumerization makes technology more accessible and tailored to the end-user's needs. This trend, where technology innovations are adopted first in the consumer space before being embraced by businesses and organizations, has numerous benefits.

It aligns with the evolving expectations of the workforce and introduces efficiencies and capabilities that were previously unattainable. Below, we explore each benefit in more detail.

Flexibility

One of the key benefits of IT consumerization is the flexibility it introduces to the workforce. Employees are no longer tethered to their desks or office hours to complete their work. Personal devices and consumer apps enable employees to work from anywhere, at any time, leading to improved work-life balance and job satisfaction. 

This flexibility allows organizations to adapt to the changing needs of their employees and fosters a more dynamic and responsive work environment. It also provides a more agile workforce that quickly reacts to business needs and opportunities.

Lower costs

IT consumerization can help organizations cut costs in numerous ways. First, by adopting a Bring Your Own Device (BYOD) policy, companies can reduce or eliminate the need to purchase and maintain a fleet of corporate devices, as employees use their smartphones, tablets, or laptops for work. This shift can significantly cut hardware costs and reduce the burden on IT departments for device support and management. 

Additionally, using consumer-grade software and cloud services often comes with lower subscription or licensing fees than enterprise-grade solutions, further reducing IT expenditures. However, it's important to note that these cost savings must be balanced against the need for robust security measures and potential increases in IT support for a wider variety of devices and applications.

Accessibility

The consumerization of IT significantly improves accessibility to technology and information. Consumer devices and applications have mass market appeal, making them more user-friendly and intuitive than many traditional business tools. This ease of use can reduce the learning curve for employees, allowing them to become productive more quickly and with less formal training. 

The widespread availability of these technologies also ensures that employees have access to the tools they need, regardless of their location or the time of day. This level of accessibility is particularly beneficial for organizations with remote or global teams, as it supports seamless team collaboration and communication across different geographies and time zones.

Cons of consumerization

While the consumerization of IT has brought about numerous benefits, it has its drawbacks. The movement of consumer technology into the business realm introduces challenges that organizations must navigate to maintain operational integrity, security, and efficiency. These challenges include security concerns, the potential for slower technical support, and incompatibility issues. Learn more about each of these challenges below.

Less security

One of the most significant concerns with the consumerization of IT is the increased risk to security. Developers do not always design consumer devices and applications with stringent security measures that business environments require. Using personal devices for work can lead to vulnerabilities where sensitive corporate data might be exposed to unauthorized access or cyber threats. Additionally, blending personal and professional use on a single device complicates the enforcement of corporate security policies, making it challenging to secure data effectively without infringing on personal privacy.

Slower technical support

Technical support can become more complicated and slower in a consumerized IT environment. With a wide variety of devices and applications, IT departments might need more expertise or resources to provide immediate assistance for every possible issue. 

This diversity in technology can lead to delays in resolving technical problems, impacting productivity and potentially causing employee frustration. Moreover, the reliance on consumer tech support services, which may not prioritize business users, can exacerbate response times and resolution efficiency.

Incompatibility

Incompatibility issues are another downside to the consumerization of IT. Employing numerous consumer devices and applications means that not all tools will work seamlessly together, leading to potential disruptions in workflow and collaboration. For example, file formats may not be universally supported across different platforms, or specific productivity tools might not integrate well with the company’s IT infrastructure. These compatibility challenges can hinder the smooth operation of business processes and require additional resources to address, either through workarounds or by adopting new tools that bridge these gaps.

What are the reasons for the consumerization of IT?

Consumerization of IT is not a new phenomenon, although, in recent years, it has gained critical mass and can’t be ignored anymore. Let’s understand the reasons for it:

BYOD trend: The “Bring-Your-Own-Device” trend exploded over the past decade. With the development of high-performance consumer technology, an evolving workforce prefers to use their own devices for work. These devices are often at par (or even better) than work devices, customized with apps of the individual’s preferences, are easy to use and get the job done. This chooses to use personal devices for work, an easy one for users.

Slow innovation in business technology: Let’s be honest. Innovation in business technology is sluggish — at best. The decade-old enterprise project management tool will only see a tweak here and an update there, never revamping user experience. On the other hand, consumer technology is always innovating, with a lazer focus on customer experience. Trello offers a new, intuitive experience, with simple functionalities, without requiring you to memorize a textbook. And you can sign up with just an email address.

Convenience over convention: Users enjoy a seamless experience across devices with cloud platforms like Gmail, Netflix and Facebook. You can start writing a document on a desktop, walk out of your house, and continue working on the same document using your phone, even share it and collaborate with your friends. Conventional business solutions don’t have this flexibility and push users towards using their personal, cloud-based accounts for work.

Bureaucratic processes: IT departments are notorious for having bureaucratic processes. A user requesting an app has to go through multiple levels of requisition forms and approvals before their request is processed. A corporate credit-card-empowered manager will side-step IT and buy the app online.

These reasons, of course, compel us to ask…

What are the challenges with the consumerization of IT?

I’m fairly confident when I say this that IT departments don’t want employees using unapproved technology for their work. Consumerization of IT flies in the face of this idea and brings its own set of challenges:

Untimely support: Given an instance that a person is using their personal device with their choice of software to produce a body of work. They won’t be able to get timely support from IT because IT will have to first learn about the technology, the potential pitfalls and the resolutions before offering support for it. This is part of a more significant problem called Shadow IT and may disrupt operations.

Read more about Shadow IT

Security Risk: With the consumerization of IT, the practice of BYOD is ubiquitous. This poses security challenges for organizations in the form of: 

• Network security: Employees connecting personal devices to enterprise networks may be potential vehicles for malware.

• User data: Employees working with user data on personal devices and accounts may violate data regulation policies.

Discontinuous, incompatible tech: We have all been there. “This won’t work on my Windows PC” or “I can’t do that on my iPhone”. This issue will inevitably present itself with users using their preference of devices and software, and make collaboration difficult…unless they are using cloud-based software (I’ll come back to this).

After looking at these challenges, naturally, you would wonder…

What are the benefits of the consumerization of IT?

No trend gains this much popularity unless it has pronounced benefits that are noticed by organization leaders. Let’s look at some of them:

Reduced costs: Arguably the most important benefit is reduced costs. With users using their own hardware and their own software, organizations save on hardware and software provisioning costs. An added benefit is that of reduced training costs since users already know their way around the technology.

Increased productivity: Employee productivity is an important metric for any organization. With employees using technology that is familiar to them, they are obviously going to be more productive, and satisfied. Organizations gain business agility with the operational overhead of retraining taken away.

Always-connected workforce: Using consumer applications, like Gmail, for their work, employees are always connected with each other. If an employee vacationing in Sandals, Jamaica is needed for an urgent project meeting she can be present in the meeting room with Skype and a screen. This is also a huge benefit for organizations with a remote presence that needs to collaborate with a central hub.

As we can see, the benefits from the consumerization of IT are significant, compared to the challenges. But this doesn’t mean organizations should throw out their current systems and replace them with consumer technology right away. We should first ask…

How should organizations address the consumerization of IT?

In short, by embracing it. But if we give it more than a second’s thought, organizations can leverage the consumerization of IT to their advantage, if dealt with strategically. They can do so by:

Investing in consumer-centric business software: Business software doesn’t need to be ugly, clunky and restrictive. Consumer-centric business software power successful businesses across the globe. Other businesses should take note and seriously consider adopting it. Hallmarks of consumer-centric business software are:

• Security 

• Scalability

• Mobility

• Ease-of-use

• Democratic design

Reducing bureaucratic processes: IT departments should reduce their processes by: 

• Offering IT services through an intuitive service catalog – This will make availing services easier for the user.

• Automating service request approvals with workflow automation – This will save costs, manual effort and enable the IT department to maintain an audit trail.

Getting consensus before adopting new technology: Survey the end-users of the technology the organization is planning to adopt, ask them what they would like to use. Reach an org-wide consensus before rolling out the new technology. Remember, consumer technology like WordPress and iPad are powerful business tools if utilized correctly. 

Educating employees on security risks: Educate employees on the security risks associated with using personal devices. This information can be rolled out in the form of mandatory seminars, courses, tests or any combination of these. Educating employees about security risks associated with using personal devices is better than banning personal devices altogether.

Adopting an open-door policy: The IT org can adopt an open-door policy on the usage of personal devices. Any personal laptop can then be brought to IT, get partitioned, and be used on the company VPN. This will minimize the security risks associated with using personal devices on the company network while giving users a virtually new laptop to work with.

IT consumerization trends in 2024 and beyond

As we look towards 2024 and beyond, several trends in IT consumerization are emerging, shaped by technological advancements, shifts in workplace dynamics, and evolving user expectations. These trends reflect a broader movement towards more personalized, efficient, and flexible use of technology in professional settings. Here are some key IT consumerization trends to watch out for as we head into the future:

1. Increased emphasis on mobile and remote work

With remote work quickly becoming a staple in the modern workplace, there is a growing demand for mobile solutions that support productivity from anywhere. This trend includes adopting smartphones, tablets, and laptops that employees are already familiar with for professional tasks. Apps and tools that facilitate collaboration, project management, and communication are becoming increasingly popular, ensuring that teams can work effectively regardless of their physical location.

2. Rise of AI and machine learning in consumer apps

Artificial intelligence (AI) and machine learning are becoming more integrated into consumer applications. This means that consumer apps are now beginning to offer personalized experiences and smarter, more intuitive interfaces. 

On the flip side, these technologies are expected to enhance productivity tools, customer relationship management (CRM) systems, and business intelligence platforms in the workplace. AI-driven personal assistants, smart scheduling, and automated data analysis tools are examples of how consumerization drives more intelligent and adaptive technology solutions in professional environments.

3. Greater focus on cybersecurity for personal devices

Cybersecurity becomes a critical concern as the line between personal and professional device use continues to blur. There's a trend towards developing more robust security solutions that organizations and users can easily apply to personal devices without compromising user experience. These security features include advanced encryption, multi-factor authentication, and endpoint security technologies that protect sensitive data without hindering the flexibility and accessibility that are hallmarks of IT consumerization.

4. Expansion of 5G and enhanced connectivity

The rollout and expansion of 5G technology will continue to significantly improve mobile connectivity, enabling faster data transfer rates, lower latency, and more reliable connections. This enhancement in connectivity will support a broader range of mobile and IoT (Internet of Things) applications in the workplace, from augmented reality (AR) for training and development to real-time data analytics and cloud computing. The increased bandwidth and speed of 5G will make it easier for employees to work effectively from any location, further driving the consumerization trend.

5. Adoption of cloud-native technologies

Cloud-native technologies that exploit the scalability and flexibility of cloud computing are becoming more prevalent in consumer applications. Now, we're beginning to see this trend expand into professional work environments, where organizations are adopting cloud-native applications and infrastructure to improve agility, reduce costs, and enhance collaboration. Accessing data and applications from anywhere, on any device, aligns perfectly with the ethos of IT consumerization, promoting a more dynamic and adaptable IT environment.

6. Emphasis on user experience (UX) in enterprise software

There's a growing recognition of the importance of user experience (UX) in enterprise software. Inspired by consumer application's intuitive and user-friendly designs, businesses demand similar qualities in their professional tools. This trend is driving the development of enterprise applications that are powerful and easy to use, reducing the learning curve and increasing employee adoption rates.

Conclusion

After analyzing the various aspects of the consumerization of IT, we can see that the benefits far outweigh the risks. For organizations, it is an opportunity in disguise, to save costs and future-proof their IT org. For users, it presents the freedom to work with their choice of tools. 

It is evident that the consumerization of IT is the way of the future. Organizations will greatly benefit from adapting to it. Why not get started right now? Try our consumer-centric business software.