Leimeister, Jan

Weiß, Frank

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BISE – CATCHWORDConsumerizationIT Innovations from the Consumer Market as a Challengefor Corporate ITDOI 10.1007/s12599-012-0234-4The AuthorsDipl. Wirtsch.-Inf. FrankWeißChair for Information SystemsUniversity of KasselPfannkuchstr. 134121 KasselGermanyweiss@wi-kassel.deandDetecon International GmbHDingolﬁnger Straße 1-1581673 MünchenGermanyFrank.Weiss@detecon.comProf. Dr. Jan Marco Leimeister ()Chair for Information SystemsUniversity of KasselPfannkuchstr. 134121 KasselGermanyleimeister@uni-kassel.deandInsitute of Information ManagementUniversity of St. GallenMueller-Friedberg-Strasse 89000 St. GallenSwitzerlandJanMarco.Leimeister@unisg.chReceived: 2012-04-27Accepted: 2012-09-13Accepted after two revisions byProf. Dr. Sinz.Published online: 2012-10-17This article is also available in Ger-man in print and via http://www.wirtschaftsinformatik.de: Weiß F,Leimeister JM (2012) Consumeriza-tion. IT-Innovationen aus dem Kon-sumentenumfeld als Herausforde-rung für die Unternehmens-IT. WIRT-SCHAFTSINFORMATIK. doi: 10.1007/s11576-012-0338-y.© Springer Fachmedien Wiesbaden20121 Corporate Use of ConsumerMarket TechnologyOver the last few years, innovations thatoriginated in the consumer sector haveincreasingly been infiltrating the corpo-rate environment (Ingalsbe et al. 2011,p. 3; Cummings et al. 2009, p. 259). Thistrend, referred to as “Consumerization”,will have a lasting impact on corporateinformation management, and in com-ing years will continuously confront ITmanagers with new challenges.This trend was initially observed withthe emergence of Web 2.0 technologies,such as wikis, social networks, and blogs(Cummings et al. 2009; Holtsnider andJaffe 2012, pp. 287–303). These applica-tions and technologies are currently usedby companies to improve collaboration(e.g., via Doodle), to exchange informa-tion (e.g., via Twitter), or as a form ofmultilateral cooperation in conjunctionwith the use of social networks (e.g., viaFacebook or LinkedIn).In addition to Web 2.0 technologies,mobile devices and applications fromthe consumer market are currently forc-ing their way into the corporate sec-tor (Holtsnider and Jaffe 2012, pp. 271–303). iPhones in particular are increas-ingly being used in companies as a substi-tute for the classic business smartphone(usually a BlackBerry). In addition tothe iPhone, Apple’s iPad is also increas-ingly being used in the corporate en-vironment, to some extent even replac-ing notebook PCs (for example for ser-vice technicians). In contrast to mobiledevices specifically developed for busi-ness use, this category of device is in-creasingly using sensor technology (e.g.,position and ambient light sensors orNear Field Communication (NFC)) toprovide context sensitivity and to enableprovision of corresponding value-addedservices (Leimeister 2012).This consumerization trend is cur-rently most prevalent in North America.This can be seen, for example, in the re-sults of a study by business analysts Strat-egy Analytics. This study shows that in2010 approx. 37.6 % of all smartphonesworldwide that were bought for businessuse were purchased privately (StrategyAnalytics 2011). In North America on theother hand, it was 55 % of the smart-phones bought for business use (in com-parison with Western Europe: 25.5 %;Strategy Analytics 2011). The high preva-lence of the trend in the USA is alsoconfirmed in an analysis carried out in2011 by the Yankee Group. This anal-ysis shows that 78 % of American ITdecision-makers accept the use of pri-vate devices and applications in the com-pany environment (Palumbo et al. 2011).Only 20 %, however, offer support forthe use of these devices and applications(Palumbo et al. 2011).2 Changed Expectations asDrivers of the ConsumerizationTrendIn the ICT sector, innovations have fora certain time initially appeared in theconsumer market (“Innovation first onconsumer market”; Terryn 2011, p. 1).One result of this is that company staffhave more experience in the use of in-novative information and communica-tion technology for private purposes, andthat they also expect the same usagepatterns in the corporate environment(Holtsnider and Jaffe 2012, pp. 271–272).The fact that in the perception of the staffthe infrastructure provided in companiesdoes not sufficiently fulfill these expec-tations is driving the corporate adoptionof consumer market technologies (Finell2010; Davenport 2005). A high level ofuser-friendliness (so-called “User Expe-rience”) and provision of new applica-tion options (Vogel et al. 2010, p. 26;Holtsnider and Jaffe 2012, pp. 271–272),both paramount aspects for private use,are being used as evaluation criteria forcorporate use (see Fig. 1). A high levelof user-friendliness, for example, is pro-vided by intuitive operating concepts(e.g., via touch screens or intuitive menuBusiness & Information Systems Engineering 6|2012 363BISE – CATCHWORDFig. 1 Changed expectations from IT as drivers for consumerizationguidance) or an appealing design. Newapplication areas are for example createdvia the context sensitivity provided bysensors and via increased mobility andnew options for collaboration.The dissatisfaction with the infrastruc-ture provided results in uncontrolleduse of private devices and applicationsby the staff, despite this being forbid-den by companies (Holtsnider and Jaffe2012, p. 272). For example, companySIM cards are used in privately purchasediPhones and discussion groups openedfor company-internal affairs in social net-works, such as Yammer on the initiativeof staff. So-called “Digital Native” em-ployees (normally classed as having beenborn later than 1980), who grew up ina strong symbiosis with computers, theInternet, and mobile technologies, are inparticular increasingly striving for cor-porate use of the technologies familiarto them from the private sector, and arein this way forcing integration of thesetechnologies into the corporate environ-ment (Vogel et al. 2010, pp. 25–28). Theincreasingly blurred distinction betweenprivate and business life also supportsthe drive by the staff, and in particu-larly the Digital Natives, for use of famil-iar devices and applications in the corpo-rate context (Seidel 2011; Holtsnider andJaffe 2012, pp. 288–296). Due to secu-rity considerations and the problems as-sociated with corporate support, compa-nies have resisted official use of the dis-cussed technologies for a long time. Pres-sure for integration of mobile devices,such as iPhones and iPads, however, hasincreased substantially in many compa-nies – in particular as a result of intereston the part of middle and top manage-ment in the use of these types of devices(Holtsnider and Jaffe 2012, p. 272). Thelevel of interest and the resulting pressureare so high that IT departments are be-ing forced to provide support for thesedevices and their security at short notice.3 Impacts of the Trend onCorporate ITThe impacts of the consumerizationtrend on corporate IT are derived anddiscussed below based on Krcmar’s in-formation management model (2010,pp. 50–595) (see Fig. 2).3.1 Impacts on the Management ofInformation ExchangeThe consumerization trend impacts thedemand for and the supply and use of in-formation and its management in com-panies. New intuitive operating conceptsallow faster location and retrieval of in-formation and thus support the demandfor information within companies. Theincreasing use of smartphones and tabletcomputers enables mobile access to re-quired information from almost any lo-cation. Via context sensitivity, availableinformation can be enriched and person-alized. Influenced by the private usagepattern, the provided information is dis-cussed, appraised and supplemented viasocial networks, blogs, and wikis. This inturn can support the information sup-ply and demand and improve knowledgemanagement.Information and communication tech-nologies from the consumer market en-able companies to cover information re-quirements via previously unused chan-nels. This inevitably leads to an increasedamount of information to be managed.In this respect, use of Web 2.0 appli-cations can support self-regulated con-solidation of supply and demand by thestaff. In addition to content-related qual-ity assurance, expedient reduction of theamount of information is a central chal-lenge facing management of informationexchange.3.2 Impacts on the Management ofInformation SystemsThe use of e.g., mobile Web 2.0 applica-tions as a component element of corpo-rate information systems has impacts onthe management of data, processes, ap-plication lifecycles, and the system land-scape in companies.Due to intermittent absence of networkconnectivity, data captured using mobiledevices (e.g., location data) can be outof date and can thus result in inconsis-tencies. This must be taken into accountwhen designing information systems.To fully exploit the options offered tocompanies by the consumerization trend,some of the existing business processesmust be modified or redesigned. Thesales process, for example, can be re-aligned and optimized for the use ofiPads or staff experience with social net-works can be incorporated into a suitablyadapted product development process.In terms of the impacts on the life-cycles of the application systems, cycletimes can be expected to approach thosein the consumer sector. Application life-cycles in the corporate context will beshorter since the staff will always want touse the latest innovations. It can also beexpected that beta versions will increas-ingly have to be integrated into corporateIT due to the pressure for rapid intro-duction of innovations, as is the case inthe consumer market. License manage-ment will also become more complicated,since e.g., in the case of mobile applica-tions purchased via Apple’s AppStore thelicensee is always the private individual364 Business & Information Systems Engineering 6|2012BISE – CATCHWORDFig. 2 Impacts of the trend on information management (Krcmar 2010, p. 50)and not the company. And since thereare no business accounts with Apple, theemployee takes all company-financed li-censes for mobile iOS applications withhim when he leaves the company.Applications from the consumer mar-ket normally do not offer the interfacesor use the standards necessary for pro-fessional use of IT (for example packag-ing of software components). Integrationof these applications into the company’sIT results in a disintegration of classicsystem architectures.3.3 Impacts on the Management ofInformation and CommunicationTechnologyAt the information and communicationtechnology level, mobile devices and op-erating systems (e.g., iOS and Android-based smartphones and tablet comput-ers) as integral elements of technologybundles (e.g., client-server architectures)have a significant impact on informationmanagement. New demands are placedon the storage, processing, and commu-nication of data.Due to the addressed increase in thevolume of information demanded andoffered and the underlying data, con-sumerization further increases the grow-ing data storage requirements to be metinternally or externally by companies. Inparticular mobile applications such asYammer or Dropbox store the data out-side the company in a virtualized infras-tructure. Despite the above-mentionedincrease in the volumes involved, this canresult in a reduction of the amount ofdata to be stored within the company.The increasing volume of data ex-changed via mobile devices increasesthe bandwidth requirements on cor-porate communication networks (e.g.,UMTS and WLAN). This effect is ag-gravated by the private use of company-provided smartphones, since it resultsin increased consumption of bandwidth-intensive multimedia content.The integration of information andcommunication technology from theconsumer market entails a variety of risksfor information management. Due tothe short innovation cycles, particularlywith mobile technologies, it is difficultto forecast trends and technology devel-opments. And since innovations in themobile environment are often providedby small companies, some of whom dis-appear from the market or are boughtout in the medium to long term, supportand further development of the associ-ated hardware and software is not guar-anteed. In addition to these risks, thecombination of private and business useexacerbates the management of informa-tion and communication technology interms of compliance with data protec-tion requirements. In this respect, ap-propriate technical solutions (e.g., mo-bile sandbox applications) and organiza-tional measures (e.g., usage policies andguidelines) must be established.3.4 Impacts on Managerial Tasks forInformation ManagementConsumerization has a strong impacton managerial tasks in conjunction withinformation management, in particularon the IT processes, IT governance, andIT security. The use of consumer mar-ket technologies as a component elementof corporate application systems involveson the one hand new procurement pro-cesses (private procurement of devicesused for company purposes via “BringYour Own Device” (BYOD) initiatives)and on the other hand new support pro-cesses (“Self-Service“ by the staff). Due tothe dynamic nature of the consumeriza-tion trend, practiced by the majority ofthe staff (“bottom-up”) but also forced bytop management (“top-down”), corpo-rate IT is increasingly becoming a drivenentity. It must be able to ensure integra-tion of applications and devices at shortnotice. Proactive management (IT gov-ernance) is next to impossible. EnsuringIT security is also difficult, among otherthings due to the combination of privateand corporate use and the administrativelimitations normally associated with con-sumer market technologies (e.g., limitedAPI provision with iOS and Android).The financial viability of corporate useof consumer market technologies canonly be assessed in conjunction with thespecific integration into the respectivecompany. BYOD programs contribute toa reduction of investment costs via theprivate procurement of devices, and toreduced support costs via the establish-ment of self-service models. Further costsavings can be achieved via the addressedexternal storage of corporate data. Onthe other hand, the increasing band-width requirements (without appropri-ate adaptations, e.g., in terms of mo-bile phone tariffs) and additional licensecosts for integration of a large numberof private devices can result in increasedinfrastructure costs.Business & Information Systems Engineering 6|2012 365BISE – CATCHWORD4 Future Developments –Consumer Apps and GamiﬁcationThe consumerization trend is currentlybeing most strongly perceived in the useof privately purchased mobile hardware(smartphones and tablet computers) inthe corporate environment (Quaadgrasand Mohammed 2011, p. 1). In the fu-ture it can be expected that free or low-cost mobile consumer applications (so-called “consumer apps”) will increasinglybe integrated into corporate infrastruc-ture. A look at the usage statistics formobile applications supports this fore-cast. An average of 37 mobile applicationsare used on private devices (Finell 2010).In the corporate environment a signifi-cantly lower figure can currently be as-sumed, a market potential that is cur-rently extremely attractive for many ITproviders.What we are also seeing is the inclu-sion of elements typically to be foundin games into application systems. Thistrend, referred to as “Gamification”, canbe seen in the use of high scores, rank-ing lists, and experience points aimed atincreasing staff motivation during whatare often monotonous tasks, or to in-crease the learning effectiveness of train-ing courses. One example of an appli-cation that combines both Web 2.0 andgame features is the mobile applicationof the social business network Jive. Withthis application, users are for exampleawarded status points for useful contri-butions and answers posted in the fo-rums. In summary it can be said that con-sumerization has heralded a paradigmshift: Many application and usage inno-vations have their origin in the consumermarket and from there they are forcingtheir way into corporate IT. The widerange of challenges for the managementof corporate IT with all of its facets isbecoming even wider – and currently anend is not in sight.ReferencesCummings J, Massey AP, Ramesh V (2009)Web 2.0 proclivity: understanding howper-sonal use inﬂuences organizational adop-tion. In: 27th ACM international conferenceon design of communication, Blooming-ton, p 7Davenport T (2005) Thinking for a living:how to get better performance and resultsfrom knowledgeworkers. Harvard BusinessReview Press, BostonFinell JP (2010) Transient apps: the consumerinﬂuence on enterprise mobility. Part 2.http://pro.gigaom.com/2010/08/transient-apps-the-consumer-inﬂuence-on-enterprise-mobility-part-2/. Accessed 2012-04-19Holtsnider B, Jaffe B (2012) IT manager’shandbook, 3rd edn. Kaufman, BurlingtonIngalsbe JA, Shoemaker D, Mead NR (2011)Threatmodeling the cloud computing,mo-bile device toting, consumerized enter-prise – an overview of considerations. In:17th Americas conference on informationsystems, Detroit, p 6Krcmar H (2010) Informationsmanagement,5th edn. Springer, HeidelbergLeimeister JM (2012) Dienstleistungsengi-neering und -Management. Springer, Hei-delbergPalumbo S, Lund D, Hamilton G (2011) Em-bracing consumerization in the enterprise.Research report, Yankee GroupQuaadgras A, Mohammed I (2011) Harness-ing the consumerization of IT. In: MIT SloanCISR research brieﬁng, pp 1–4Seidel B (2011) Integration privater Endgerä-te: Mitarbeiter geben der Unternehmens-IT den Takt vor. http://www.isreport.de/news-esvents/news/archiv/2011/02/04/article/integration-privater-endgeraete-mitarbeiter-geben-der-unternehmens-it-den-takt-vor.html. Accessed 2012-06-21Strategy Analytics (2011) Global businesssmartphone sales 2010–2016. Research re-port, Strategy AnalyticsTerryn WC (2011) Consumerization. Fer, Mau-ritiusVogel R, Berger T, Kocoglu T (2010) Desktop-virtualisierung – Deﬁnitionen, Architektu-ren, Business-Nutzen. Vieweg, Wiesbaden366 Business & Information Systems Engineering 6|2012

Consumerization: IT Innovations from the Consumer Market as a Challenge forCorporate IT

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Consumerization: IT Innovations from the Consumer Market as a Challenge forCorporate IT

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