How did Information Management become so complex in the first place? The six key reasons

Organizations have more information than ever before, and where technology was once held the promise simplifying all of this, today the sheer variety of systems and software platforms can feel like a challenge in of itself.

The Association for Intelligent Information Management, for example, published a survey back in 2023 showing that the average organization uses five different Information Management systems. From just three in 2013.

How did complexity on this scale even emerge?

In most companies, different departments pick different tools: Marketing might pick a campaign platform, Finance chooses an invoicing app, and HR sets up an applicant tracking system. Each solution meets local needs, but they rarely connect with one another. Over time, the tech stack expands, and no one has a complete overview. With Information Management, imagine this sort of departmental trend, but multiplied by ten to get an idea of the scale of the problem.

1. Of clouds, SaaS and on-demand software

Cloud-based apps lowered the barrier to entry for many services. People can now subscribe to software quickly, without much oversight. While this approach sparks innovation, it also encourages uncoordinated adoption. Multiple apps might overlap or store data in different corners. By the time your leadership notices, your staff are already using these systems at scale, and the pain point of telling them get off it is seemingly worse than just allowing it to continue.

2. Shadow IT

You might not be immediately familiar with the term, but you’re certainly familiar with what it refers to.

Shadow IT is when employees use unapproved tools to get work done (think employees using disallowed generative AI platforms for a more recent and topical example, although it can be anything). Employees might, for example, store files on a personal cloud drive or chat through an unsanctioned platform. Ominously, IBM’s Cost of a Data Breach report from 2024 stated that one in three data breaches involve shadow IT.

3. The stickiness of legacy systems

This is probably one of the most common problems we discover in working with organizations: Many still rely on older software because it supports vital operations. Replacing it seems risky or expensive. Meanwhile, new tools keep arriving. The result is a blend of old and new, stitched together by manual workarounds or custom code. These older platforms can be tough to update or link to modern services, which leads to even more fragmentation.

4. Mergers, acquisitions and rapid growth

Two companies = Two sets of tools, and while the solution (pick a best-in-class for each category) might seem simple, if leaders do not integrate them carefully, complexity doubles. A fast-growing business might also adopt new offices or product lines, each with its own apps, further increasing overlap and confusion.

One of the things the U.S. based Data Warehousing Institute (TDWI) underscores is the risk of not giving these seemingly “minor” problems sufficient resources in the event of a merger. They do, in fact, require significant IT resource to ensure complexity is cut down to size.

5. Remote and hybrid: A new normal (and challenge)

Recent shifts to remote or hybrid work have inspired teams to pick different communication and file-sharing apps. While these tools help keep people connected, they also increase the total number of systems in use.

Much like the driver of regulatory pressures (outlined below), remote work also leads to security anxiety among IT professionals, encouraging new systems, or the extension of legacy systems to new remits. These risks are of course, entirely legitimate as the Financial Times has covered before, but they can also create more problems than they solve.

6. Regulatory pressures are getting tighter

Rules like GDPR and HIPAA demand strong data oversight. A scattered IT environment makes it hard to locate and protect sensitive information. It also complicates compliance audits or data requests. GDPR and GDPR-like laws (which are now commonplace all over the world, including many U.S. states) have extremely severe penalties for improper handling of data/information (in Europe it’s as high as 5% of top-line revenue for example).

Regulation therefore means that it’s all too easy for an organization, especially a large organization, to procure yet another software system that promises to protect them. Especially in times of uncertainty or following a well-publicized data breach and legal case against another company in their sector.

This affects people, too

Employees often waste hours searching for documents or juggling too many logins. According to one U.K. based study, employees waste 360 hours a year, and approximately 25% of their salaries on searching for relevant information.

Naturally, they may feel overwhelmed or unappreciated because the company is not fixing the root causes of their daily hassles. This turnover can strain teams already dealing with a complex technology environment. IT Pro, an online publication, rather aptly described this as a sort of “digital hide and seek” with information.

Looking ahead

There’s hope too though. The work of identifying overlaps, removing duplicates, and creating more unified processes might sound onerous, but there are comparably simple ways of going about this. Our upcoming guide will explore practical ways to reduce complexity in information management.

We will cover how to evaluate your existing tools, build more connected solutions, and support a smoother, more efficient environment. Stay tuned for insights that can help you bring order to your organization’s data, save time and money, and give your teams the space to do their best work.