1. Bimodal IT decomposes the IT function into two modes—Traditional and Agile—the former focused on stability, the latter on the speed and experimentation necessary to support innovative uses of IT in a digital business context. Our study identified four bimodal IT archetypes and the factors that drive an organization to adopt bimodal IT. We found that companies switch between different archetypes as they transform the IT function, and we describe possible IT transformation journeys they can take. The article concludes with guidelines for transforming the IT function in the context of bimodal IT.

2. Agenda Introduction to the Bimodal IT Function
Insights from this Research into Bimodal IT
Navigating the IT Transformation Journey
Guidelines for Transforming the IT Function
Moving Beyond Bimodal IT

3. Introduction to a Bimodal IT Function
Bimodal IT – decomposes the IT function into 2 modes – Traditional and Agile
Traditional IT is focused on stability
Agile IT is focused on experimentation
Agile is needed to support digital transformation
Bimodal IT allows the IT function to operate in two parallel modes—Traditional and Agile
Bimodal IT enables organizations to transform the IT function to support digitization

4. Traditional IT vs. Agile IT
Traditional IT Function
Need for IT Agility
Designed to deliver reliability, scalability, security and efficiency
Functions as a service provider
Viewed as a cost center
Focused on stability
Risk averse
Demand to respond to digital environment
Focuses on customer experience and business outcomes
Works on projects with less certain outcomes
Employs agile methodology

5. The Bimodal IT Approach Resolves Conflicting Goals
A challenge to achieve optimal balance of explorative and exploitative IT while simultaneously delivering agility and reliability
Firms must have IT agility and IT explorative capabilities while simultaneously not losing sight of the IT function’s traditional objectives
An increasing number of firms are considering bimodal IT approaches as the means to develop these capabilities

6. Agenda Introduction to the Bimodal IT Function
Insights from this Research into Bimodal IT
Navigating the IT Transformation Journey
Guidelines for Transforming the IT Function
Moving Beyond Bimodal IT

7. Field Study and General Findings
Field study with 19 European companies
Companies had a minimum of 250 employees, annual revenues of at least 50 million euros ($53 million) and an internal IT function in existence for at least 15 years
38 interviews with CIOs and business executives
Identified 3 reasons for deciding to adopt bimodal IT
Identified four archetypes of bimodal IT, each with specific advantages and disadvantages
Found that bimodal IT is used in the overarching transformation of the IT function

8. Reasons Why Companies Decide to Adopt Bimodal IT
The Need for IT Agility
The Need for IT Explorative Capabilities
The Need for Structural Alignment with the Business 1 2 3

9. Four Archetypes of Bimodal IT
Identified four distinct archetypes with different levels of structural separation between the Traditional and Agile modes

10. Archetype A: Project by Project
Certain projects are “fast tracked” and tasked to explore innovative IT use cases while others follow traditional governance principles
Allows companies to gradually introduce Agile mode
Good choice for companies reluctant to engage in major changes because it

11. Archetype B: Subdivisional
Company subdivides the IT function into two distinct groups, one operates in Traditional mode and the other in Agile mode
Agile mode requires a different employee skill set from that typically found in traditional IT units.

12. Archetype C: Divisionally Separated
Establishes an Agile mode division outside the traditional IT function
The Agile division is frequently led by a chief digital officer (CDO) and is often referred to as the “digital division.”
Causes the highest level of internal disruption
Appropriate for firms that have fallen behind their increasingly digital competitors and want to signal their digital ambitions both internally and externally

13. Archetype D: Reintegrated
After establishing bimodal IT, firms may decide to reintegrate Bimodal IT archetypes and create a seemingly unimodal IT function
Operates with heightened levels of agility and explorative capabilities
Allows a firm to focus on its digital business transformation mission while moving traditional IT operations to outsourcing partners or to a smaller subdivision
The IT function retains its Traditional mode in the background while appearing to external stakeholders as a unimodal IT function

14. Difference between Four Bimodal IT Archetypes
The differences between the four different archetypes are:
Extent of internal disruption caused by the bimodal split
Level of cultural divide caused by split
Management of IT resources
Alignment mechanisms between the business and IT function and the two modes of IT.

15. Differences between the Four Bimodal IT Archetypes

16. Agenda Introduction to the Bimodal IT Function
Insights from this Research into Bimodal IT
Navigating the IT Transformation Journey
Guidelines for Transforming the IT Function
Moving Beyond Bimodal IT

17. Switching Between Archetypes
Common practice to switch as firms gain experience and learn from the difficulties
Movement through archetypes is not necessarily sequential from A to D
Duration and effort required for a transition between archetypes can differ
Various motivations to switch

18. Switching Between Archetypes 1/2
Archetype A: Project-by-Project
Archetype B: Subdivisional
Archetype C:
Divisionally Separated
Archetype D: Reintegrated
Typical scope
Certain projects are “fast tracked” and tasked to explore innovative IT use cases while others follow traditional governance principles.
IT function is divided into two separate divisions, one focusing on “digital initiatives” and the other focusing on traditional IT service delivery.
Separate “digital division” is created outside the IT function under non-CIO leadership and with little or no ties to the traditional IT function.
IT function involved in all IT-related projects, but with a focus on digital initiatives. Traditional IT services often performed by outsourcing partners or teams operating in the background.
Potential reasons for adopting archetype
Individual groups have previously introduced an Agile mode informally. The business is trialing more agile and explorative approaches on a few individual endeavors.
CIO has had significant involvement in creating digital strategy. Experience with explorative IT innovation projects exists within the IT function.
IT staff members do not have the skills or the mindset to explore and deliver business-relevant digital innovations. Top management wants to express its digital ambitions more disruptively.
Agile mode and Traditional mode operations have matured to an extent that they could be (partially) merged, with Traditional mode activities disappearing into the background.

19. Switching Between Archetypes 2/2
Archetype A: Project-by-Project
Archetype B: Subdivisional
Archetype C:
Divisionally Separated
Archetype D: Reintegrated
Critical success factors
Appropriate training of staff on Agile mode methods.
Formally accepted Agile mode governance principles.
Business awareness of risks and potential cost traps of Agile mode projects.
Strategically minded and business-oriented CIO manages the IT function.
Clear resource allocation, governance, objectives and division of responsibilities in place for both subdivisions.
Appropriate governance mechanisms for Agile mode “digital division.” Knowledge transfer and cross-training of staff between Agile mode and Traditional mode divisions.
“Legacy perception” of slow and inflexible IT function no longer exists.
Business accepts IT staff as competent and adaptive partner who deliver technology-based business value-add.
Challenges/ motivations to switch to a different archetype
Tensions between Agile mode and Traditional mode project resources. High attention on Agile mode projects reduces the attention devoted to Traditional mode IT service delivery projects.
IT function hierarchy inhibits motivation of all staff and engenders cultural division. Allocation of resources between subdivisions causes tension between them.
Misalignment between the digital division and IT function. Digital division generates IT innovations that IT function cannot easily integrate with existing systems. Duplications between the two divisions.
Little attention given to providing commoditized core IT services. Potential loss of deep knowledge about traditional core IT services and critical backend operations.

20. Pathways for Transforming the IT Function to Bimodal IT

21. Agenda Introduction to the Bimodal IT Function
Insights from this Research into Bimodal IT
Navigating the IT Transformation Journey
Guidelines for Transforming the IT Function
Moving Beyond Bimodal IT

22. Guidelines for Transforming the IT Function
1: Recognize and Promote the Importance of Bimodal IT
2: Select a Bimodal IT Archetype and Articulate your Future Vision
3: Continuously Re-evaluate Whether to Switch to a Different Bimodal Archetype
4: Set up Appropriate Governance to Manage the Transformation

23. Agenda Introduction to the Bimodal IT Function
Insights from this Research into Bimodal IT
Navigating the IT Transformation Journey
Guidelines for Transforming the IT Function
Moving Beyond Bimodal IT

24. Moving Beyond Bimodal IT
Firms may eventually move away from bimodal concepts to realize their future vision of corporate IT
Some companies strive for a unimodal agile design
Unimodal agile design can be achieved by outsourcing Traditional mode operations so that the IT function can fully focus on supporting digital business objectives