Gartner defines Bimodal as the practice of managing two separate but coherent styles of work:

• one focused on predictability

• the other on exploration

Mode 1 or Run, is optimized for areas that are more predictable and well-understood. It focuses on exploiting what is known, while renovating the legacy environment into a state that is fit for a digital world. Traditionally this was the Keeping-the-lights-on (KTLO), and consumes majority of budget.

Mode 2 or Build is exploratory, experimenting to solve new problems and optimized for areas of uncertainty. These initiatives often begin with a hypothesis that is tested and adapted during a process involving short iterations, potentially adopting a minimum viable product (MVP) approach. Traditionally this was the innovation part of budget.

Both modes are essential to create substantial value and drive significant organizational change, and neither is static.

Another variation for IT Budgeting is RGT- Run, Grow & Transform the Business framework. Use RGT business IT spending categorizations to help communicate the funding needed for business transformation and the cost to maintain legacy business models.

• Divide the run the business IT spending by business outcome metrics to show per-unit-cost productivity improvement, with the related volumes, to better show its value to the enterprise

• Use other IT spending portfolios in addition to the run, grow and transform the business IT spending model, to help strategic stakeholders to make optimized business investment decisions, and to drive innovative thinking

Bimodal - Build, Run

The shift of enterprise focus to growing revenues, is making it imperative to become Digital/Platform Company. Each enterprise is re-imagining its marketplace. It is becoming more interactive with customers/partners, mobile, and driving its business by analytics.

Today's Enterprise, need to reimagine for Social, Mobile, Analytics and Cloud (SMAC). Call it Digital Enterprise, API Economy, Platform Company, Internet of Things, at business level, it is network ecosystem with Virality, enabled by SMAC i.e. Software.

Examples of few New Age Digital/Platform Companies:

• Nike+ – A Shoe / Apparel Company is now an ecosystem of digital products and experiences designed to measure, motivate and empower you to improve

• Google Wallet – A Platform that helps you Shop, Save, Pay.. with your phone… Imagine the traditional competitors that it will envelope

• Personal Hygiene – A connected electric toothbrush, designed to track brushing habits and encourage better dental

• International Phone Calls – Skype now accounts for third of international call volume

• Learning – MOOC’s platforms like Coursera, Khan Academy

• Product Manufacturing – Shapeways, a spinoff of Philips Electronics provides a platform to 3D Print everything on-demand, which means that every order is customized and personalized