Small Business IT Governance: You really need it now

it-balancing-actBig changes are going on in the world of information technology and business.  Where social computing and  mobility are no longer purely consumer concerns, enterprise IT departments face a growing requirement to embrace user devices and access in environments which were once strictly and closely controlled.  Enterprise IT may be challenged when presented with user personal devices and demands for remote access to enterprise data, yet the governance of systems is generally well-defined and strictly performed.  In small business, however, the people, policy and process issues (collectively incorporated into “governance”) tend to be more organic, and the use of personal devices and open access is more frequently considered to be a normal part of the overall business IT profile.

It is a focus on defining controls and processes, and influencing the activities and attitudes of the people involved, which has become an essential requirement in small business.  Where management of information technology resources was not of great concern to the small business owner before, increased device and information mobility (removal of physical boundaries) and erosion of logical boundaries around personal and business computing have become a really big deal for everyone in business. Small businesses just don’t often have departments of people working on the problem.

Technology use in business has always come at a price, and as various influences continue to change how users interact with devices, applications and systems, business owners and IT managers will continue to face difficult choices between balancing security of information resources and providing a productivity-enhancing user experience.   Too many security barriers result in avoidance of security protocols, slow or immobile company computers result in users working on their own machines and portables, and restricting access for mobile users results in “shadow IT” implementations of mobile sync and other data access approaches.

Yet “shadow IT” tends to be the norm with many small businesses, where there are often fewer barriers to implementing solutions which address individual user issues or problems.  Lacking the resources or understanding to develop a strong plan for managing information systems and technology within the business, small business owners often consider the computer systems and computerized data to be tools to get jobs done rather than strategically valuable assets to be strictly controlled and protected.  These business owners are not recognizing the ever-increasing need to not simply secure business information, but to establish processes and rules which will govern how users and devices access and interact with the information and systems.

Enterprise IT departments have often viewed their small business counterparts (customers, suppliers, etc.) as potential points of vulnerability, an attitude which was once considered to be centered not on real assessments of the risk but more in terms of ego, level of sophistication, and hierarchy in the food chain.  In today’s world of real risk introduced by myriad technological and human elements in every link in the supply chain, enterprise IT conclusions regarding the risk potential of doing business with anyone – including small businesses – may not be entirely unfounded.  Whether it be commentary and information distributed by individuals via social media or malware or corruption introduced inadvertently (or not) via computerized interaction, there is the possibility of risk introduced with every system, person and process involved.  Enterprise to enterprise, these issues may be more often recognized and remediated; where the SMB is involved, not always so much.

This is a brave new world of computing, and there is truth in that even the smallest of businesses can “compete with the big guys” when the right mixture of technology and process is applied – for good or bad.  Technology enables businesses to be more productive, get more done with fewer resources and perform at higher levels. IT Governance in small business is no longer an optional area of focus, addressed only during infrequent discussions with the local contract IT guy when he comes in to defrag the hard drive on a slow computer.  Establishing the proper processes and controls to wrap around IT use in the business has become an imperative; a necessarily specific and considerate approach to how information technology is used within the business, who uses it, and what IT is composed of.

Just about every business, and most individuals, are connected in some manner via some type of network, representing a dramatic and dynamic change to the traditional composition of business IT and the landscape of vulnerabilities which threaten it.  The increased connectedness, capability and complexity of systems and networks requires a greater focus on overall IT governance – exercising authority and controls – as the impact (just like the information) can easily and unintentionally reach far beyond the boundaries of the individual business.

jmbunnyfeetMake Sense?

J

“People are nothing more than another operating system”, says Lance Spitzner, training director for the Securing The Human Program at SANS Institute.  “Computers store, process and transfer information, and people store, process and transfer information,”  How Hackers Fool Your Employees

Cloud Computing and Online Accounting for All? Some Markets Are Still Waiting for Broadband

Cloud Computing and Online Accounting for All? Some Markets Are Still Waiting on Broadband

As the information technology industry espouses the benefits of the “paradigm shift” in computing and the move to cloud computing platforms and models, there are folks out there in the world who just aren’t seeing it happen like that.  Not everybody’s working online. For many, the Internet and online working models simply haven’t intruded into their lives and businesses as it has for others.  While this may be partially rooted in conservative mentalities and beliefs which are resistant to change, the more likely reality is that options for high-quality and affordable broadband service is simply not available to them.  Without choices for affordable and useful connectivity to the Internet, online just doesn’t have the attraction it does for those who are “connected”.

When businesses look at cloud solutions and the Internet dependency that comes along with them, having more than one connection to the outside world becomes the imperative rather than a luxury.  Unfortunately, some markets are still waiting for broadband (or have very limited options for service), rendering the cloud nearly unreachable.

It may come as a surprise to some, particularly to those in East and West coastal regions, that high speed broadband just isn’t as available in other zones.  In fact, the *National Broadband Map clearly reveals limited availability and choice in numerous regions of the US.  Broadband Internet access is a necessity to support the IT industry’s shift from localized IT to “cloud” IT.  But the shift is only evident to those who are involved in it or who have that option.  For those who the industry is beginning to refer to as the technology “have-nots”, this lack of available and affordable access will ultimately create more than simply an inability to participate in broadband-reliant IT solutions.  The fast pace of innovation and evolution in IT almost guarantees that the technology have-nots will fall even further behind, possibly to the point of not being able to catch up.

 “A Growing Gap Between IT Haves, Have-Nots. There will be a growing gap between the IT haves and have-nots in 2013. The latter will fall behind the former on a wide range of business technology fronts such as mobile, cloud, social, virtualization, and analytics…” 7 SMB Technology Predictions for 2013 | InformationWeek.com

As business (and personal) technology models continue to evolve, and as new solutions and services begin to displace the old, those who remain disconnected will begin to directly experience much more impact.

Consider something as simple as using QuickBooks desktop software for small business bookkeeping.  As Intuit continues to remove elements from the installed software product, turning them into web services instead, customers with limited or no broadband access will find themselves without the features and functionality they need in the software.  And the only possibly comparable alternatives to QuickBooks desktop accounting products are Internet-based alternatives, making them not really alternative options at all.

It is also likely that lack of sufficient broadband is one of the factors motivating many solution providers to seek clients in other markets – outside of the United States, and in regions where broadband availability is more prevalent and service speed and quality is higher.  Yes, it’s true.  The United States is not the leader in broadband availability, or even in quality.

“For many people, their broadband connections are their lifelines. So what is the state of broadband in the U.S.? Well, when it comes to speed and price and adoption, we’re certainly not a leader — “middling” is a better way to describe our position.

Currently 119 million people that live in the U.S. don’t have broadband connections (for many reasons, including not wanting it or not being able to afford it) while 19 million don’t even have the option to get it. Our rate of broadband adoption (62 percent) lags behind countries such as South Korea, the U.K.,and Germany, according this year’s Federal Communication Commission report. (We’re closer to the penetration rates to Japan, Finland, and Canada.) These numbers are not likely to change soon, given that broadband growth is slowing and providers are moving away from wireline infrastructure. “ GIGAOM:The state of broadband in the U.S. [infographic]

Accountants and other professional service providers serving clients in regions lacking sufficient choices for access must recognize that their approaches to doing business will not necessarily match their peers in more fully connected areas.  Certainly, accounting and legal professionals are dealing with this reality as practice coaches and industry leaders push for IT- and cloud-enabled models for improving practice performance and creating differentiation, even as their proven applications and business solutions morph into or are replaced with SaaS applications and online service.

The take away from this is that there are still large numbers of businesses and individuals doing things with legacy tools, managing spreadsheets on standalone PCs, or writing with pens and using paper – even in areas where broadband access is plentiful.  Regardless of how forward moving the rest of the world may be there remains a need to provide service and support these IT have-nots.  Perhaps this becomes a means for differentiation, finding ways to work with businesses who are connected and those who are not, and leveraging the firm’s access and capability to deliver what the client cannot obtain directly.

Make Sense?

J

*The National Broadband Map is a tool to search, analyze and map broadband availability across the United States

Surprise! Consumer apps get IT approval in small businesses: GIGAOM.com

Surprise! Consumer apps get IT approval in small businesses: GIGAOM.com

In a recent article on GigaOm, author Barb Darrow discusses the findings of a survey of small businesses in the US, UK, Canada, Australia and New Zealand, where it was found that the use of “consumer” information technology is being more widely accepted for use in small businesses, and that many of these selections are happening without the knowledge or participation of the IT department.

“Employees are driving business apps selection in many small and medium businesses, according to new research. A good percentage of productivity, social and collaborative apps now sanctioned by IT in SMBs were brought in by workers without IT knowledge.“

Reporting that small businesses are adopting “consumer” IT, and that it is OK with IT departments, isn’t a surprising finding.  Small businesses have begun leveraging mobility and cloud solutions to their benefit, being able to take advantage of powerful technologies that previously only enterprise IT departments could enjoy.

 “.. the line between personal and workplace technologies has become all but invisible. That poses real challenges to IT departments that have to deal with all sorts of technology coming in over the transom. But it also opens up opportunities for vendors that design easy-to-use consumer apps to enter the business realm as well.”

The cloud introduces new agility and capability for all businesses, not just small business. For IT departments in larger businesses, this is a big IT management issue. For smaller businesses, the IT manager is often the business owner or an occasionally contracted on-site technician.  When faced with IT needs in the business, many small business owners will at some level rely upon the solutions they also use in their personal lives – in many cases, there simply isn’t a budget for both.  The line between business and personal has always been “blurry” for the small business owner.

Make Sense?

J

Read more: Disruptive Trends = Emerging Opportunity: Adapting to a changing technology and business environment

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