Funding for Bimodal Approach
Imagine a co-working space, where professionals are working side by side and building new methodologies and techniques for their projects. Imagine this same scenario within your organization across different teams and also within the same teams.
More and more changes are happening within organizations today, leaders across divisions are driving their own innovations. They approach technology, solutions and platforms differently. Bimodal is response to changing business.
Bimodal requires executive teams to also lay emphasis on how projects are funded and governed. It is seen that organizations generally start this bimodal practice through a small number of projects, which is called as “project bimodal”. Based on these projects, the capabilities are increased across divisions and developing a more systematic and agile culture which is called as “enterprise bimodal”. These changes are rapid and have a huge impact on the operations of an organization and the funds need to be planned for and allocated accordingly to support a successful bimodal transformation.
Start with small, less investment projects
Bimodal approach consists of two modes, mode 1 focusing on safety and accuracy and mode 2 focusing on innovation, agility and speed. CIOs tend to participate more in mode 2, and apply risk management approach. CIO and CFO work together and apply simple controls that is effective for the finance team. The CIO needs to coach CFO and the investment committee about the different profile and different product view of mode 2. As mode 2 leads to high uncertainty and risk, the funding needs to be dedicated fairly. This does not mean these projects get a blank check or are without controls; it just means they need to be funded and overseen in a different way. The transition between modes, influences the funding practice, and cannot be done on a requirement basis. A good idea would be to begin with “project bimodal” and move towards “enterprise bimodal”.
“CIOs should be prepared to change the thinking and help to develop a rapid process to fund Mode 2 projects that is not dependent on traditional business case processes,” said Jim McGittigan, research vice president at Gartner.
There are two benefits of starting small, CIOs have the opportunity to explore different funding mechanisms and the business gains an understanding of the new funding mechanism. This is also the beginning of #ParadigmShift.
Analyze the performance and gain insights
Mode 2 changes the way an organization operates. It helps the systems and operations become more innovative, agile and speeds up the processes. As part of the overall funding strategy, CIOs should ensure that all business, IT and financial leaders clearly understand the transformative value of Mode 2 innovation. Done well, bimodal IT achieves increased agility along with decreased cost.
“If the organization is wedded to ROI for all initiatives, it is culturally not ready for bimodal,” advised Mr. McGittigan.
Altimetrik is a business transformation and technology solutions partner to global enterprise customers covering three global mega trends of modernization – Digital, Connected Solutions & Consumer Technologies. The three mega trends that form the basis of its business, are rapidly being embraced by the world, both by developed & developing nations. However, getting onto the bandwagon from existing landscapes needs a transformation – one which is very aggressive. And that, is the focus at Altimetrik – being today’s technology enablers, consulting on future trend adoption and becoming a transformation partner in this journey for our customers, by investing aggressively in capabilities and solutions that catalyze this transformation.
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