IT has already moved toward becoming an agile enterprise, shifting away from waterfall-based development efforts. Failing fast and tackling small projects have become familiar ideas in development, says Jason Byrd, Managing Director, Technology business management at KPMG. \u201cThe IT organization has really \u2018gotten religion\u2019 lately about moving to an agile enterprise,\u201d he says.\nBut traditional IT finance funding processes, with their long lead times and multitude of requirements, will not be able to keep pace with agile development and rising customer demands for speed and flexibility. As detailed in Part 1 of this two-part blog series, dynamic investment is a new, necessary funding model for the future of IT:\u00a0 Similar to working with a venture capital (VC) firm, it enables investing almost anytime and anywhere \u2014 based on value, releasing minimally viable products, and gauging customer response, while easily changing or moving in a different direction when needed.\n\u201cAt KPMG, we have relationships with the finance community and know how they work, but we also know how the world is changing,\u201d he explains. \u201cWe want to solve for that and bridge those gaps as IT organizations transform.\u201d\n\u00a0Funding technology through an annual budget cycle no longer makes sense. \u201cNow, you have to build things fast and beat your competitors to the market,\u201d says Rob Breakiron, technology advisor at KPMG. \u201cWhile the traditional funding constraints placed on the technology delivery organization gave executives some control over technology sprawl, it also hedged away many of the possible market-shifting winning ideas.\nDynamic Investment Get-Started Action Steps \nInstead of seeing technology spending as a project, companies should view it as an investment in strategic value. These are four essential action steps to get started:\n\nStart small. \u201cWe're not saying just flip and the board and completely start over,\u201d says Breakiron. \u201cThe hardest shift in mindset is cultural, not technical.\u201d Shift away from project-based budgeting toward lean product funding, starting with one or two value streams and fund small to see how your business reacts to it. \u201cTake your lessons learned and expand over time as you build trust.\u201d\nBe prepared to fail fast. Traditionally, different IT projects were approved at the top, and with more success, more trust was built with the business. \u201cNow, we're seeing that's too cumbersome,\u201d says Byrd. \u201cWe need to flip it where the idea shouldn't be about success or failure, but to identify failure early.\u00a0 If you\u2019re not failing, you\u2019re not innovating.\u201d\nThink like a venture capitalist. \u201cYou\u2019re going to have to think like Mark Cuban now, like a venture capitalist would,\u201d says Breakiron. That means continually evaluating bold new ideas that challenge the status quo, while being ready and willing to invest in ideas that make financial sense, even if they\u2019re not in the capital plan.\nProvide transparency. To place the right dynamic investment bets, IT needs to effectively discuss the benefits of an investment and shape the technology portfolio accordingly. That means linking technology to business objectives and making those linkages transparent -- inside and outside of the IT organization. \u201cYou need to track your projects well with better data and understand where your money is going,\u201d says Byrd.\n\nLearn more.\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.