With faster, nimbler and smarter modern business models, companies need to continuously invest in technology. The problem is, the slow process of IT funding hasn\u2019t kept pace with customer demand.\nIT has traditionally been a cost center with an annual budgeting cycle and a classic funding process, explains Jason Byrd, managing director, technology business management at KPMG. \u201cIf want to fund a technology-driven initiative, you traditionally look for those dollars by doing an ROI study, funding the project and finishing years later,\u201d he says. The problem? In a world when Facebook releases code every three minutes and consumers expect real-time software updates, that process no longer works for the speed of business.\n\u201cWe need IT to be able to fund their investments quicker and faster and not use these big, multiyear, monolithic decision-making processes,\u201d he says. \u201cOrganizations should expect their own IT department to release code faster and pivot in the marketplace.\u201d That means discovering what is not viable sooner, in order to redirect money, dollars and effort, he adds.\nIn addition, says Rob Breakiron, technology advisor at KPMG, business stakeholders have been developing IT for a long time. Shadow IT used to be a bad word, whereas now we think of it as business led IT. \u201c As an IT organization, we need to remove the friction and constraints that hold back or slow technology development in order to deliver what the business needs at the speed they need it,\u201d he says.\nThe New Model: Dynamic Investment \nKPMG\u2019s new paper, Funding Technology at Market Speed: The need for dynamic investment in the future of IT, details a new approach. Dynamic investment enables investing almost anytime and anywhere \u2014 based on value, releasing minimally viable products, and gauging customer response, while easily shifting direction when needed.\n\u201cDynamic\u201d is about flexibility, rather than remaining static, says Byrd. It is also an ongoing process rather than one that focuses on batch or discrete decision-making. \u201cWe are trying to evoke a method that is both flexible and continuous,\u201d he explains. \u201cIf you walked into Shark Tank with a great idea and Mark Cuban said, \u2018I want to fund that, but it's not in this year's budget -- can I fund it next year?\u2019 That doesn't happen.\u201d\nMost companies have access to capital, unless they truly are at dire straits with their business, he adds: \u201cSince they can afford any initiative IT is trying to put forth with the business, it makes sense to go ahead and not wait around for an annual cycle.\u201d\nThat doesn\u2019t mean IT departments need to begin a $200 million transformational program. Instead, they can begin with small investments. \u201cThe idea is to see how it's being adopted, how it is doing by some leading indicators, which serve as canaries in the mine that are proxies for the actual benefits,\u201d he says. \u201cUse those as gauges for whether or not you want to put more money in. If not, you can stop the project and do something else.\u201d\nThe bottom line, says Breakiron, is to stop putting all the effort up front to protect against failure. Instead, organizations should put in small amounts of time and money to test theories and, like a VC firm, set up different rounds of funding to continue rewarding winning ideas that meet predefined OKR success criteria.\u00a0 \u201cWe're starting to build IT in much smaller chunks,\u201d he explains. \u201cIn this new world, you test a theory and if it\u2019s not delivering the benefits that you want, it is ok to stop the investment and go after something else. If a product is meeting or exceeding your OKRs then it is time to double down\u201d\nIn Part 2 of this two-part blog series, we will dive into the cultural shifts necessary for dynamic investment to succeed and some key action steps IT organizations should take.\nLearn more\u00a0\nSome or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.\nThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.\nThe KPMG name and logo are registered trademarks or trademarks of KPMG International.