Insight
Think like a venture capitalist to fund technology at market speed.
Delivering quality products and services that customers want, when and how they want them, requires continuous technology investment. As the business model of the future gets faster, nimbler, and smarter, companies will find that modern development and delivery methodologies, and traditional IT finance funding processes, with its long lead times and multitude of requirements, will not be able keep pace with customer demand.
A new approach, called dynamic investment, is needed. Similar to working with a venture capital (VC) firm, it enables investing almost anytime and anywhere — based on value, releasing minimally viable products, and gauging customer response, while easily changing or moving in a different direction when needed.
Such a process would reduce overcommitting to an annual budget or tying up capital, resources, and capacity long term. By employing lean financial processes to support the release of small amounts of capital quickly, organizations can create a pipeline of new ideas and use available funds to achieve quick wins or learn fast from failure.
Just as development must get faster, nimbler and smarter, so must the funding process that enables it.
By deploying a “think like a VC” investment approach, organizations can drive dynamic and continuous funding of technology and investments based on value.
IT funding today:
- A business case is prepared with a cost-benefit analysis.
- Scope, timeframe and resources must be known upfront and are evaluated annually for project prioritization.
- Measurement of success is based on lagging indicators, which often cannot be tracked at the speed of agile delivery.
IT funding of the future:
- Fund value instead of projects, and think like a VC.
- Adopt lean funding to keep the technology portfolio current.
- Embrace the decentralization of IT to make smarter and faster decisions.
- Catch bad ideas faster through data and empowerment.
- Communicate transparency and value to enable faster fact-based decisions.
Learn more in the article and podcast below.
Learn about supporting agile technology development capabilities with a process for dynamic investment.
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.