Managed digital allowance

Managed Digital Allowance (MDA) or Digital Allowance is an emerging business practice and management trend of allowing employees to choose their own technology work tools within corporate guidelines that allocate a stipend or “allowance” for such purchases. Typical productivity tools covered and reimbursed by the enterprise include desktops, laptops, netbooks, mobile phones and similar technology. The ability for workers to choose their own equipment is supported by a variety of methods. For example, workers may purchase their own equipment with reimbursement by the company or equipment is chosen through a company-managed portal or “store”. The amount of the MDA per individual and the variety of choice may vary, depending on the role and/or location of the worker.
History
Historically, the primary goal of enterprise desktop services has been to reduce the total cost of ownership, or TCO, while still delivering the necessary functionality and security for end users. To meet those goals, IT organizations embraced desktop and application standardization, as well as the use of controls and automation to manage configuration and licensing costs. These strategies and tactics have been effectively applied at many organizations and they remain fundamental elements for top-performing IT groups. But today, there’s a growing sense that they’ll be insufficient for achieving the next levels of efficiency and end user satisfaction as the nature of desktop technology, procurement and support shifts. As remote workers and “road warriors” enthusiastically embrace smart-phones, netbooks and other non-traditional devices for core work tasks, IT leaders are aware that traditional, highly centralized service delivery models may not be a good fit. MDAs models have emerged as one way to address worker demands that companies keep up with advances in technology.
Increasingly workers are asking their IT departments “Why don’t I have as functional a device for work as I use at home?” With three generations of workers comprising the workforce, workers look for productivity tools that fit their unique work styles. Those styles are as diverse as the workforce itself: some workers operate from traditional offices with ready access to a full range of IT support services, others from satellite offices, while road warriors spend almost all their time in the field. This diversity of computing needs, when combined with device proliferation, places new challenges on IT groups. These new realities, or as Gartner Research recently pronounced the arrival of the “era of truly personal computing”, require new thinking, processes and policies. Gartner describes this “consumerization of IT” as “the single most significant trends affecting IT in the coming decade.” According to one Gartner analyst, it’s “an open market of capabilities available to all, and … outside the control of the corporate IT function.”
The past model of locking in or standardizing on a single original equipment manufacturer (OEM) for desktops and laptops can’t meet these new requirements. Instead of standard corporate-issued personal computers (PCs), more workers choose to use their own home computers and laptops, smartphones and other handheld devices. In fact, a recent TechTarget survey estimated that 25 percent of the corporate workforce now uses personal devices for work. An online poll of more than 500 enterprise information workers recently conducted by Unisys Corporation (NYSE: UIS) shows that a majority prefer using their own PC or a hosted virtual desktop to do their work and to access information resources. Specifically, in answering the question, “What is your preferred form of personal computer technology for work?”, 55 percent of the 532 respondents favored a non-traditional approach to workplace productivity. Of those respondents, 36 percent said that they prefer to bring their own PCs to work, while 19 percent indicated that they prefer to use a hosted virtual desktop. Less than half - 45 percent - said they still favor a PC provided and managed by their company.
Enablers of MDA or Digital Allowance include emerging technology such as desktop virtualization and cloud computing. Desktop virtualization extends the principles of “software as a service” (SaaS), hosted solutions and cloud-computing models. Technology providers such as, Citrix, Intel, Microsoft, and VMware provide technology that extends desktops through a range of new delivery options, offering “anytime/anywhere” access for workers on any type of device.
Benefits
Today’s enterprise workers are more knowledgeable about technology, and more demanding. They want to choose tools and devices that reflect their unique organizational roles, as well as their preferred work styles and locations. They are actively engaged in evaluating, selecting and supporting their own devices. A 2009 Yankee Group survey found that 42 percent of respondents believe that “My personal technology is more advanced than my workplace technology.” Their use of social media tools and sites has caused a major rise in expectations about collaboration and content delivery. Managed digital allowances are one way enterprises can meet the demands of these new realities.
A November 16, 2009 online Wall Street Journal article by Nick Wingfield reported that “Some forward-thinking companies are already giving employees more freedom to pick mobile phones, computers and applications for work - in some cases, they're even giving workers allowances to spend on outfitting themselves. The result, they've found, is more productive employees. There's a reason professional chefs bring their own knives to work, rather than using a dull set of blades lying around the kitchen.”
The globalization of business has also had an effect by increasing the number of remote workers, field-based employees, contractor relationships and satellite offices. Work happens everywhere - hotel rooms, airports, home offices, coffee shops, clients’ facilities and so on. Forrester counts 22.8 million home-based businesses, as well as a growing contingent of telecommuters who work for large enterprises. Gartner estimates that more than 50 percent of end-user workloads are now handled on mobile computers.
During a recent webinar on how to enable end-user productivity gains, Sam Gross, vice president Global Information Technology Outsourcing Solutions at Unisys recommended that CIO’s consider developing strategies that adapt to a mix of conventional, virtualized and user-provided desktops and extend the reach of the enterprise desktop and modernize delivery of the application portfolio. Managed Digital Allowances may be one way that CIOs can more effectively handle consumerization trends. MDAs provide the CIO a way to experiment and manage the introduction of consumer technology in the enterprise. Blanket bans on the use of consumer technology in the enterprise no longer achieve the desired goals of the enterprise and can do more harm than good. Transparency in company policies and directives has a greater impact on employee compliance. Managing the use of consumer technology in the enterprise has the potential to reduce costs and improve security in quantitative and qualitative ways.
IT departments should periodically review their policies on the use of consumer IT and validate the underlying reasons for these policies and adjust them if required. Enterprises’ procurement and use policies for work tools should be open, transparent and widely inclusive. IT departments should assess the use of consumer technology in the enterprise, while documenting its impact on costs, security and intangible factors, such as employee morale, productivity and retention. Enterprises can establish a program in which certain trusted employees who need new approaches and can demonstrate business value may conduct sanctioned experiments with consumer technology, with help from IT.
IT groups should consider options such as pilots programs and collaborating with prime services vendors to tailor an overall package of offerings and incentives that reflect the organization’s unique mix of users, work styles, locations, assets and infrastructure.
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