The ever increasing speed in the digital era challenges the traditional modus operandi of IT organizations. Digital products and services must be developed in quick and iterative steps to match the speed of industries and ecosystems. This change in how we deliver value points out implications towards organizational structures, how we coordinate work, degrees of freedom, technological structures, such as the right degree of coupling and focused automation, and, last but not least, financial management structures.
In their 2020 article “Disrupting Traditional Approaches to Create a Resilient Innovation Funding Model” the analysts from Gartner focus on the tension between new ways of working and traditional financial management approaches.
Traditional investment management approaches — such as, annual budgeting, capital project management and formal business cases — are failing to meet the speed of change.