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Introduction

There is a need for IT departments and agile practitioners to introduce a practical financial evaluation method that addresses their immediate funding requirements while also fitting within the "beyond budgeting" (BB) ambit.

Highlights

  • Some IT functions are finding it difficult to justify and fund agile initiatives because a traditional business mindset demands conventional and often bureaucratic business-case and budgeting methods. Agile methods and lean startup initiatives require agile and lean financing methods.
  • Agile funding is directed at funding only the next iteration of a project. The decision to stop, change. or proceed is taken after each increment.

Features and Benefits

  • Proposes an agile funding method for agile initiatives.
  • The agile funding method can become a part of "beyond budgeting" because it conforms to BB principles

Key questions answered

  • How do I get agile projects funded?
  • Is there an agile funding method that fits agile principles?
  • How do I implement agile funding in my organization?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for enterprises
  • Recommendations for vendors

Financing agile IT

  • Financing agile projects in a traditional way makes no sense
  • Proposing an AF method to finance agile projects
  • Using AF methods in agile and lean initiatives

Financial considerations for the cloud

  • Moving to the cloud is moving from capex to opex
  • Financing the cloud involves more than financial decisions
  • The sun needs to shine on shadow IT
  • Cloud-based IT changes more than just the funding model
  • Business responsiveness rather than cost should drive the cloud journey

Appendix

  • Methodology
  • Further reading
  • Author