Rethinking BiModel IT
“While CIOs might not be able to transform their existing IT department into a digital startup, they could turn it into a bi-modal IT organization. Forty-five percent of CIOs state they currently have a fast mode of operation and we predict that 75 percent of IT organizations will be bi-modal in some way by 2017.” Peter Sondergaard, senior vice president at Gartner and global head of research, says while talking about BiModel IT. I have read lots of articles and updates, talked to CIO’s to learn their approaches to it. There are bunch of thoughts in my head and I just want to share them with you.
First things first, let’s look at the basic definition of BiModel IT. 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 traditional and sequential, emphasizing safety and accuracy. Mode 2 is exploratory and nonlinear, emphasizing innovation, agility and speed.
- Mode 1: Legacy systems, proven technology, big up-front investments, classical waterfall processes, long release cycles, “failure is not an option” …
- Mode 2: Modern internet-based systems, latest & greatest technologies, Agile/DevOps process, continuous delivery, “fail fast” …
Companies need to explore the most compelling technology-enabled opportunities from mobile through analytics, smart machines to the Internet of Things. Companies who don’t want to lag behind this imperative, should create new products or services bundled with technology. They need to be kind of a digital company to some extend. This requires speed, risk taking and innovative mind. Actually there is no other option as I mentioned in my last article “Architecting For Change”. The spiraling growth of “shadow IT” being experienced by most enterprises is the proof of being slow or result of not doing it. Embracing BiModel IT is a good answer to this demand.
BiModel IT suggests building 2 teams; operation (Mode 1) and innovation (Mode 2). I find it very bold step forming an innovation team. It is crucial to be a digital service company. Computer World made an interview with Michael Nilles who is CIO of Schindler Group, a Lucerne, Switzerland-based company that manufactures elevators, escalators and moving walkways. He says;
“It’s very important when you have an established organization to give room for innovation, and you usually can’t do that within the boundaries of an established organization, so whatever you call it, you have to have it within another unit. You need teams focused on a new innovative piece.”
As you can predict this point of view helps to create a culture of innovation within the company. But you have to be careful because “two-speed” approach could create a conflicted, “us versus them” culture. Creating 2 teams and labeling one team “Innovators” and the other “Operation” could demotivate operation team. It implies that they don’t add value to company. Cultural effects should be considered carefully. Thoughtful communication and attention are needed in order not to alienate co-workers.
Is it applicable to all company sizes from small to big? When I look at the companies which embraced BiModel IT are big companies like Ford Motor Company, Schindler Group. It is understandable because large compaines are more likely to set up 2 teams. Seperating teams in small or mid-sized companies doesn’t work well because it could either leave some areas without needed talent or force the company to hire more talent.
I think emphasizing Mode 2 over Mode 1 is one of the weak points of BiModel IT. At the end of the day without legacy systems, mainframes, ERP systems whatever you call it, you can’t run the company effectively and you need them to build Mode 2 applications on. We should bear in our mind that both parts are equally important.
When you think transforming your traditional IT to BiModel IT, there are some important areas you need to consider:
- BiModal capabilities
- Architecture in a BiModal IT
- IT sourcing, vendor relationships, terms & conditions
- Preparing core system (ERP systems) for BiModel
- People management regarding two styles of work
BiModel IT is relatively new model and there is no doubt, real life experiences will shape it in the next years.