Gartner’s “Bi-Modal” Capability Concept and the 3D Adaptive Procurement Strategy

Gartner’s concept of “bi-modal capability” refers to investing in IT infrastructure to support two types of systems simultaneously:

1. New IT systems designed to accommodate emerging technologies and built with highly agile architectures.

2. Existing IT systems that remain highly reliable, efficient, and easy to manage.

This dual approach enables organizations to drive business transformation by operating two complementary modes side by side.

The Two Modes

• Mode 1: Traditional, “factory-like” operations, similar to a waterfall approach, emphasizing precision, reliability, and stability.

• Mode 2: Agile, speed-focused operations aimed at innovation, rapid iteration, and flexibility.

In IT, this distinction differentiates back-end standard systems (infrastructure, traditional services, etc.) from front-end configurable systems (applications, user experiences, data, and content) that are highly flexible.

Adaptive Sourcing in Bi-Modal IT

To support bi-modal IT, Gartner proposed an adaptive sourcing model, dividing IT services into three environments:

1. Innovate: Rapid experimentation and agile concept testing.

2. Differentiate: Enhancing business process efficiency and enabling transformation.

3. Run: Maintaining stable operations.

Each environment involves distinct stakeholders, sourcing options, and suppliers.

Application to Procurement

This model works well for indirect procurement. Many organizations operate across multiple business types, some standard and routine, measured by availability and cost reduction, while others involve high-demand clients (e.g., marketing) that require differentiation and fast response to market trends.

Amid rising innovation competition, companies must engage in creative campaigns, challenges, and incubators—areas where traditional sourcing methods fall short. Many of us already work in a truly adaptive procurement environment.

3D Adaptive Procurement Strategy

To better illustrate this, we extend the 3D adaptive procurement strategy:

The three axes—Innovate, Differentiate, and Run—form a triangle representing three core procurement outcomes: Value, Relationships, and Processes/Systems.

• Value emerges from improving existing operations (Run) and informal development (Innovate).

• Processes and Systems require differentiation (for varied user groups) and innovation for further development.

• Relationships must be maintained and may involve differentiation (e.g., supplier segmentation).

Dynamic Model and Trade-offs

Assume the triangle’s area is fixed. Any movement of one point affects the others:

• Increasing Innovate may decrease Run, impacting operational value while boosting innovation.

• Supplier relationships may also be strained when focusing on early-stage innovation with emerging partners.

• Over-emphasizing Run could reduce innovation while stabilizing current operations.

Similarly, adjusting another point allows you to observe the ripple effects across the triangle, e.g., maintaining stable operations while enhancing differentiation to satisfy stakeholder demands.

Benefits of This Model

• Provides a visual representation of procurement strategy.

• Illustrates trade-offs between innovation, operational stability, and supplier relationships.

• Supports strategic decision-making in a dynamic, multi-dimensional procurement environment.

This 3D adaptive model enables organizations to balance operational excellence, innovation, and stakeholder satisfaction, reflecting the complexities of modern procurement.