Special Report July 16, 2007, 12:01AM EST

The Good and Bad of Tagalong Technology

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Much More Comfortable

Those opportunities are created by an increasingly tech-savvy workforce whose personal and professional lives are more intertwined than ever. "Sunday morning and Tuesday afternoon are becoming completely the same," says KLM Chief Information Officer Boet Kreiken. At the same time, employees throughout organizations are becoming much more comfortable with a range of technologies.

In years past, employees might have had only a PC at home, notes Prentice at Gartner. Today they may juggle a network linking several PCs, printers, and backup devices connected to a high-speed Internet connection—in addition to a set-top box, gaming console, high-definition TV, and all manner of other Web-based services such as YouTube and News Corp.'s (NWS) MySpace.

Research by Gartner shows that employees' personal devices have already made inroads into corporate networks. The trend shows no sign of abating. As of September, 2005, 29% of employees and 24% of contractors were using noncompany-owned equipment on company networks, according to a Gartner survey of 404 IT managers in the U.S. and four European countries. Those managers expected use of noncompany-owned hardware to grow to 42% of employees and 32% of contractors by 2008.

Creative Risk Avoidance

Rather than fight the trend, some companies are experimenting with giving employees more choice regarding the technology they use—so long as they accept more responsibility for it. In 2005, BP began a pilot project that gives employees about $1,000 to spend on productivity-enhancing tools in addition to standard-issue equipment, according to an April report by the Leading Edge Forum's Neal. But before they can participate, employees need to pass the International Computer Driver License test, designed to test a person's computer literacy skills. BP declined to comment on the program.

The company takes other steps to give employees free rein while mitigating risk. BP cordons off its network by letting employees link to the Internet via consumer connections, from outside the firewall, in the case of its 18,000 laptops. At the same time it beefs up security on those machines. This lets employees safely experiment with software such as Amazon's on-demand computing and storage services.

Moving employees outside the firewall is an example of de-perimeterization, a growing movement to change the way corporations address technology security. In a business world where many employees are off-site, or on the road, or where businesses increasingly must collaborate with partners and customers, some say it's not practical to rely on a hardened perimeter of firewalls. Instead, proponents of de-perimeterization say companies should focus on beefing up security in end-user devices and an organization's critical information assets.

Freedom Breeds Inspiration

So a group of companies got together to figure out how to redesign corporate security to accommodate more fluid boundaries and officially formed the Jericho Forum in 2004. Members include Procter & Gamble (PG), Boeing (BA), and Dresdner Kleinwort.

The hope among many companies is that a little bit of technological freedom will inspire employees to innovate and find new ways of becoming more productive. Already, employees are experimenting with new Web technologies such as wikis, without the explicit permission of the IT department. In 2005, for instance, Intel engineer Josh Bancroft started a wiki because he thought it would be a good idea to have a central place to share information. That wiki, called Intelpedia, has caught on throughout the company and now has more than 5,000 pages of content (see BusinessWeek.com, 3/12/07, "No Rest for the Wiki").

Bottom Up

And even though Monte Ford at American Airlines isn't letting the iPhone into his network, he still wants to foster an environment where innovation can occur without compromising security. His employees came up with the idea of putting the company's instant-messaging system on customized laptops for employees who have to complete a checklist at each plane before each takeoff.

Previously, the mechanics had to go back and forth between the plane and a computer room to look up information about systems and parts or to communicate with pilots. Now all that can be done at the plane. "You have to be willing to reward those things that bubble up from the bottom and expect people to come up with ideas," Ford says. "We're much better off as a company if very few things come from the top, other than direction."

King is a writer for Bloomberg Businessweek in San Francisco.

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