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Achieving Digital Agility With
Bimodal IT Without Making
a Mess

Simon Mingay

2015 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in
any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on
gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner di sclaims all warranties as to the accuracy, completeness
or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research
organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a
discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its
shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these
firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information
on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
 Welcome to the Digital Wild West

Where Opportunities Come and Go Quickly, and Winning

or Losing Has Meaningful Consequences for the Business

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

By 2017, 75% of IT organizations will
have a bimodal capability. Half will
make a mess.

Bimodal IT is not a "nice to have."

2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues

1. What is bimodal IT and why should you care?

2. How should you get started in bimodal IT?

3. How do you progress to enterprise bimodal

and what traps should you avoid?

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

1. What is bimodal IT and why should you care?

2. How should you get started in bimodal IT?

3. How do you progress to enterprise bimodal

and what traps should you avoid?

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Bimodal IT is the practice of managing
two separate, coherent modes of IT
delivery, one focused on stability and the
other on agility.

Mode 1 is Mode 2 is
traditional and exploratory and
sequential, nonlinear,
emphasizing emphasizing agility
safety, accuracy. and speed.

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Bimodal Is Not:
Anything that can be bifurcated in two
Only an IT capability
Only agile development
Only an operating model or organization
chart change
The same as pace layering
A formalization of shadow IT

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

The Third Era of Enterprise IT
We are here

IT Craftsmanship IT Industrialization Digitalization

ADAPT
IDEATE

MONETIZE CREATE

OFFER ENGAGE

Focus Technology Linear processes Business models

Programming, system IT management, service

Capabilities management management
Digital leadership

Treat colleagues as Treat colleagues as

Isolated, disengaged
Engagement internally and externally
customers, unengaged with partners, engaged with
external customers external customers

Outputs and Sporadic automation and Services and solutions, Digital business innovation,
Outcomes innovation, frequent issues efficiency and effectiveness new types of value

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

The Industrialization Era Created
Marathon Runners
IT Industrialization

Linear processes

IT management, service
management

Treat colleagues as
customers, unengaged with
=
external customers

Services and solutions,

efficiency and effectiveness

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

The Digital Era Requires Sprinters
Digitalization

ADAPT
IDEATE

MONETIZE CREATE

=
OFFER ENGAGE

Business models

Digital leadership

Treat colleagues as
partners, engaged with
external customers

Digital business innovation,

new types of value

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Bimodal IT = Marathon Runners +
Sprinters, Deeply Different, Both Essential
Mode1 Mode 2
Reliability Goal Agility
Price for Revenue, brand,
Value
performance customer experience
Think Waterfall, V-model, Agile, Kanban,
Marathon high-ceremony IID
Approach
low-ceremony IID
Think
Runner Sprinter
Plan-driven, Empirical, continuous,
Governance
approval-based process-based
Enterprise suppliers, Small, new vendors,
Sourcing
long-term deals short-term deals

Good at conventional Good at new and

Talent
process, projects uncertain projects

IT-centric, removed Business-centric,

Culture
from customer close to customer

Long (months) Cycle Times Short (days, weeks)

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Pace Layering and Bimodal IT
Are Complementary

Systems
+ of -
Innovation

Governance
Mode 2
Change

Systems
of
Differentiation
Mode 1 Systems
- of
Record
+

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Pace Layering and Bimodal IT
Are Complementary

Systems
+ of -
Innovation

Governance
Change

Systems
of
Differentiation
Mode 1 Systems
- of
Record
+

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Pace Layering and Bimodal IT
Are Complementary

Systems
+ of -
Mode 2 Innovation

Governance
Change

Systems
of
Differentiation

Systems
- Mode 1 of
Record
+

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Have a Clear Vision and Strategy for
Your Filters
Systems of Innovation Systems of Innovation

Systems of Differentiation Systems of Differentiation

Systems of Record Systems of Record

One Size Fits All Layer Cake

(Unimode, One Official Approach) (Bimodal 2 or More
Approaches Aligned to Layers)

Systems of Innovation Systems of Innovation

Systems of Differentiation Systems of Differentiation

Systems of Record Systems of Record

The Core Practice Quilt

(Bimodal One Official Approach (Shift From a Methods View to "Pick
but Accepting of Others) and Mix" Best Practice)
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Mode 2 Mode 1
 CIOs should care about
becoming bimodal because
they cannot confront the range
of needs presented by digital
business with a single,
conventional mode of IT.

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues

1. What is bimodal IT and why should you care?

2. How should you get started in bimodal IT?

3. How do you progress to enterprise bimodal

and what traps should you avoid?

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Great marathon runners
do not automatically
make great sprinters.

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Start Before You Think You Are Ready

Project Bimodal Enterprise Bimodal

Integrated:
Iterative
Agile, Iterative Methods
Collaboration
Highly Collaborative X-bus.
Innovation CFO and CEO on Board
Lab
Flexible Funding
Isolated
Small Adaptive Sourcing
Low Agile Vendors Scaling Process High
Maturity Maturity
Limited High
Value Value

Typical Second Mode Starting Point

Point Beyond Which Enterprise Change Significant

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Project Bimodal Mode 1 Dominates
Project Bimodal
Mindset and Talent
Success mostly under
IT control
Teaming
Fragmented, not
Engagement Bimodal systemic, capability
Critical Project, not capability
Governance Capabilities focused
Lower risk projects, with
Iterative Methods limited scope and limited
Mode 1 impact
Structure

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Select Your Projects Based on
Their Mode 1 Impact
High

Impact on
Mode 1

Low High
Bimodal Maturity

"A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive."
Chris Osgood, Co-Founder and Co-Chair, MONUM
Select Your Projects Based on
Their Mode 1 Impact
High

Impact on
Mode 1

Island

Low High
Bimodal Maturity

"A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive."
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Chris Osgood, Co-Founder and Co-Chair, MONUM
Select Your Projects Based on
Their Mode 1 Impact
High

Impact on
Mode 1

Replace-
ment

Island

Low High
Bimodal Maturity

"A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive."
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Chris Osgood, Co-Founder and Co-Chair, MONUM
Select Your Projects Based on
Their Mode 1 Impact
High

Impact on Extend
Mode 1

Replace-
ment

Island

Low High
Bimodal Maturity

"A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive."
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Chris Osgood, Co-Founder and Co-Chair, MONUM
Select Your Projects Based on
Their Mode 1 Impact
High

New Core

Impact on Extend
Mode 1

Replace-
ment

Island

Low High
Bimodal Maturity

"A Project Will Never Scale If Mode 1 Is Not Willing and Fully Supportive."
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Chris Osgood, Co-Founder and Co-Chair, MONUM
Start With an Island Project
Virgin Atlantic:
Island Pilots GoogleGlass With High
Value Customers

IPC:
Replace-
ment
Replaces Mode 1 Credit Card
Platform With Mode 2 System

Luxottica:
Extension Creates Facebook-Like Retailer Site
on CRM Platform

City of Boston:
New Core Attempts OneCard for Metro Pass,
Library Card, School ID
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Organizational Structure A
Mode 2 Reports to the CIO

CIO

Mode 1 Mode 2 Enterprise

I&O
Development Development Architecture

Add Organizational Mode 1

Distance at First Fast Track: DevOps,
Automation and
Continuous
Delivery

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Organizational Structure B
Mode 2 Reports Outside IT

CEO

CIO CDO

Mode 1 Mode 2
I&O
Development Development

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Two Critical Roles:
Architect and Relationship Manager
Key Issues

1. What is bimodal IT and why should you care?

2. How should you get started in bimodal IT?

3. How do you progress to enterprise bimodal

and what traps should you avoid?

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Progress to Enterprise Bimodal
Mode 2 Dominates
Enterprise Bimodal

Architecture
A Committed Executive
Team That Accepts More Syncing Modes
Operational Ambiguity
Bimodal
A Well-Architected Digital Critical Funding
Core on Which
to Innovate Capabilities
I&O
Top Digital Talent
Synching Between Modes Innovation Mgmt.
Adaptive Sourcing

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 Enterprise Bimodal Traps
to Avoid:
1. The Timid Middle
2. Lack of Equity Between Teams
3. Disconnected Mode 1
4. Ballooning Technical Debt
5. Unrenovated Core
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
1. Avoid the "Timid Middle"

Stuck in the middle

"Fit for no one"

Mode 1 Mode 2

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

2. Value Both Modes: Ensure Equity and
Transparency and Mind Your Language
Establish and/or reiterate shared values, goals, principles
and common culture that unite the whole organization.
Ensure status, personal and career development, and
remuneration are equitable, fair and transparent.
Communicate to all, repeatedly, that success is contingent
on open collaboration toward a common goals.
Ensure personal, team objectives and performance
measures reflect that goal of a shared outcome.
Actively identify any incentives or goals that encourage
silo'ed or noncollaborative behavior and remove.
Be very careful with language:
- "We must balance our rock solid delivery that keeps the
business running, with increased agility and innovation"
versus "we need to be agile an react to business needs."

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

 3. Be Prepared to Synchronize Mode 1
and Mode 2 Within and Across Programs
Iterative Release Cycles Create a coordination
process and roles.
Identify critical points, like
Project Effort

technology divergence.
Be clear on conflicting
Release 1 Release 2 Release 3 Release 4 Release N
priorities.
Project Timeline Identify dependencies.

Classic Waterfall Approach Keep your commitments in

Mode 1.
Maximize Mode 2 flexibility.
Project Effort

Expect the unexpected.

Collaborate and
communicate.
Implementation Maintenance Release 2
Project Timeline One team!
4. Control Your Technical Debt
Don't Make a Mess
Scenario:
Five agile developers
Each develops 100 lines of code per day
Daily total of 500 lines of code
Assume a technical debt injection rate of 5% to 15%
Assume team gets 10% of their time to refactor

After 120 days, the team will have 12 full days of

refactoring left to do
CIOs looking to master enterprise
bimodal must address this issue

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

5. Refresh Your Digital Core

You Should
Mode 1 System Renovate Here

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Bimodal IT
What Are the Next Steps?
UNCONSCIOUS COMPETENCE CONSCIOUS COMPETENCE

Embed in Culture Build

Establish shared values and common goals that unite Modes 1 and 2.
Capabilities
Ensure equity in terms of status, rewards, recognition and career
development. Identify your filters what should
go into Mode 2. Keep it tight.
Build the processes and protocols to synchronize the two modes and
transition solutions. Identify an "island" project, where
Focus on rewarding team oriented, goal-driven behaviors. the business stakeholders will
engage.
Develop the understanding, processes and protocols to manage
technical debt with architects, project managers, business sponsors. Identify the candidate employees
for the project.
Adopt and define a way to
engage with small suppliers.
Create Awareness and Appetite Formalize the approach to
Socialize the concepts of bimodal with the executive team, IT innovation management.
management team and other key stakeholder. Use the initial projects to select
In collaboration with the executive team identify how the enterprise will and optimize an iterative
create a capability to enable it to execute a response to the uncertainty approach, and rapid prototyping.
and pace of change associated with the digital transformation. Provide the necessary protection
Identify through workshop the relevance, risks of both exploiting and for the Mode 2 team, bifurcating
not exploiting a bimodal approach. the teams where size permits.

UNCONSCIOUS INCOMPETENCE CONSCIOUS INCOMPETENCE

Recommended Gartner Research
Bimodal IT: How to Be Digitally Agile Without
Making a Mess
Mary Mesaglio and Simon Mingay (G00268866)

The End of the Waterfall as We Know It

Matthew Hotle and Others (G00238330)

Getting Started With Transitioning to Agile

Maritess Sobejana and Nathan Wilson (G00261803)

Bimodal IT and Adaptive Sourcing Are Critical to

Digital Business Success
Claudio Da Rold and Others (G00265879)

For more information, stop by Gartner Research Zone.

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommended Gartner Research
The Psychology of Serial Innovation
Mary Mesaglio and Jackie Fenn (G00250852)

A Bimodal Enterprise Needs Three Subcultures

Dave Aron (G00273134)

Five Reasons Organizations Fail to Adopt

Agile Methods
David Norton (G00155510)

Best Practices in Agile Development:

Managing Technical Debt
Nathan Wilson (G00255552)

For more information, stop by Gartner Research Zone.

2015 Gartner, Inc. and/or its affiliates. All rights reserved.

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