Enabling Dynamic Capabilities through Agile IT and beyond Budgeting Practices

Abstract

This paper discusses the confluence of agile, lean and beyond budgeting approaches in the context of Enterprise IT solutions and presents a framework, which helps to achieve synergies from these approaches and avoid sub-optimizations. The paper suggests that lean and agile approaches cannot be used in a vacuum but need to be developed and considered in the context of other critical processes required to sustain and deliver enterprise IT solutions. While agile and lean methodologies certainly provide benefits they can deliver significantly more value when applied in collaboration with an overall dynamic capabilities (Teece et al, 2007) approach. The paper briefly introduces the ITCapability Maturity Framework (IT-CMF), (Curley, 2004, 2006) and considers a closed loop mechanism to enable a dynamic capability in the context of rapidly changing environments. The paper also presents a five-layer maturity model for managing the Enterprise IT budget which aligns to the principles of beyond budgeting (Hope and Fraser, 2003; Bosgnes, 2009) being considered in this conference.