Introduction

In today’s fast-paced business world, technology plays a vital role in driving growth, innovation, and efficiency. However, the increasing demand for digital solutions has led to the rise of Shadow IT – unauthorized technology deployments within organizations that can pose significant risks to security, compliance, and governance. Low-Code/No-Code platforms have emerged as a potential solution to address these challenges. This blog post will explore how these platforms can help tame Shadow IT and deliver a higher Return on Investment (ROI).

The Rise of Shadow IT: A Growing Concern

According to a study by Gartner, 30% of IT spending is now outside of the traditional IT department’s control. This phenomenon, known as Shadow IT, can lead to a range of issues, including:

  • Security breaches: Unauthorized software and applications can create vulnerabilities that can be exploited by cyber attackers.
  • Data loss: Employees using unauthorized apps can lead to data leaks and loss of sensitive information.
  • Compliance risks: Shadow IT deployments can violate regulatory requirements, resulting in fines and reputational damage.

To mitigate these risks, organizations need to find a way to balance employee needs with IT governance and control.

How Low-Code/No-Code Platforms Can Help

Low-Code/No-Code platforms have emerged as a promising solution to address the challenges of Shadow IT. These platforms provide a controlled environment where employees can create and deploy applications without requiring extensive coding knowledge.

  • Empowering employees: Low-Code/No-Code platforms empower employees to create their own solutions, reducing the need for unauthorized software and applications.
  • Increasing productivity: These platforms streamline the development process, enabling employees to focus on high-value tasks.
  • Improving governance: Low-Code/No-Code platforms provide IT with visibility and control over application development, ensuring compliance with security and governance policies.

According to a study by Forrester, organizations that adopt Low-Code/No-Code platforms can achieve a 30% reduction in application development time and a 25% reduction in IT costs.

Calculating the Return on Investment (ROI) of Low-Code/No-Code Platforms

To calculate the ROI of Low-Code/No-Code platforms, organizations need to consider the following factors:

  • Cost savings: Reduced IT costs, improved productivity, and minimized Shadow IT-related risks.
  • Revenue growth: Increased agility, improved customer experience, and enhanced competitiveness.
  • Time-to-market: Faster application development and deployment, enabling organizations to respond quickly to changing market conditions.

Using a simple ROI calculation framework, organizations can estimate the potential return on investment:

ROI = (Gain from Investment - Cost of Investment) / Cost of Investment

For example, an organization that invests $100,000 in a Low-Code/No-Code platform may achieve:

  • Cost savings: $30,000 per year (reduced IT costs and minimized Shadow IT-related risks)
  • Revenue growth: $50,000 per year (increased agility and improved customer experience)
  • Time-to-market: 20% reduction in application development time (approximately $10,000 per year)

Total Gain = $90,000 per year ROI = ($90,000 - $100,000) / $100,000 = -10% (first year), 90% (second year onwards)

As the example illustrates, the ROI of Low-Code/No-Code platforms can be significant, with potential payback periods of less than two years.

Best Practices for Implementing Low-Code/No-Code Platforms

To achieve a higher ROI from Low-Code/No-Code platforms, organizations should follow these best practices:

  • Establish clear governance policies: Define guidelines for application development, deployment, and use.
  • Provide training and support: Empower employees to get the most out of the platform.
  • Monitor and evaluate: Continuously assess the platform’s effectiveness and make adjustments as needed.

By following these best practices and leveraging Low-Code/No-Code platforms, organizations can unlock efficiency, reduce Shadow IT-related risks, and achieve a higher return on investment.

Conclusion

In conclusion, Low-Code/No-Code platforms offer a powerful solution to address the challenges of Shadow IT and deliver a higher ROI. By empowering employees, increasing productivity, and improving governance, these platforms can help organizations achieve significant cost savings, revenue growth, and time-to-market improvements. We hope this article has provided valuable insights into the world of Low-Code/No-Code platforms and Shadow IT. What are your experiences with Low-Code/No-Code platforms? Share your thoughts in the comments below.