By: Joshua Finley

If you’ve ever tried to take your fitness to the next level, you’re probably familiar with stationary bikes. Like many others, yours might be gathering dust in the garage now. But when you are using it, the built-in flywheel stores energy as you pedal, helping the bike keep a smooth, steady motion, even when you slow down, making the ride feel more fluid.

Jeff Roberts, CEO of Innovation Vista, a company that provides Virtual CIO and CTO advisory services, believes that The Flywheel Principle can be applied to business, especially in companies that have prioritized digital transformation as part of their strategy.

Roberts suggests that consistent, incremental efforts build momentum over time, leading to exponential growth or success. As the “digital flywheel” spins faster, it requires less effort to maintain, creating a compounding effect where initial investments can lead to greater long-term results.

Says Roberts, “In today’s digital landscape, the stakes for transformation are higher than ever. Businesses invest heavily in technology, data, and analytics to boost efficiency, agility, and competitiveness, with each investment evaluated for financial growth. At Innovation Vista, we provide Virtual CIO services and strategies that focus on growth, but we also recognize another benefit: digital transformation sets a flywheel in motion, reducing future investment needs as momentum builds and new capabilities are created.”

The Challenge

A major challenge in choosing a Virtual CIO is avoiding the reliance on existing vendors, who may prioritize their own interests over offering innovative solutions. To prevent biased advice, it’s important to select an independent firm dedicated exclusively to Virtual CIO services, ensuring objective and strategic guidance free from conflicts of interest.

One of the main challenges in selecting a Virtual CIO is avoiding common mistakes, particularly when companies rely on existing vendor partners. Many vendors, often responsible for system hosting or support, may also offer CIO-related advice, since their priority is to keep solutions simple and cost-effective for themselves, they may not propose innovative ideas that would truly benefit the business.

As Jeff Roberts explains, “There is an art and science to providing Virtual CIO services. Companies that offer Virtual CIO services as an ‘add-on’ offering often provide advisors who lack the right experience. All of our consultants, for instance, are former successful CIOs and CTOs who have been vetted not only for their technical knowledge but also for their strategic expertise.”

In Roberts’ experience, clients vary in how well they understand their own organizational challenges and opportunities. Some have a clear sense of their strategic strengths and weaknesses, while others are less certain. When clients are unclear, Jeff Roberts recommends starting with a full assessment to uncover any hidden strengths or weaknesses, as many may not realize where they need help.

As Roberts puts it, “Think of it as that first mile on a stationary bike. The assessment process builds the momentum for the next step in the process when we drill down into strengths and weaknesses.”

For organizations that have performed a focused SWOT analysis, the focus shifts to identifying areas that can run smoothly on their own or are already managed by staff or vendors. 

However, Roberts urges caution when it comes to digital transformation, “A project like this is often outside the scope of a typical project manager, as it involves more than just overseeing tasks and deadlines. It requires handling sensitive aspects like company culture, human behavior, and the fears that often arise among employees, particularly during acquisitions or mergers where the acquired staff may fear for their future,” says Roberts.

The Digital Flywheel in Motion

According to Roberts, the more energy and focus you input early on, the less you’ll need to maintain or increase its speed later. Similarly, initial digital investments, when executed wisely, can set in motion a series of benefits that build upon each other, driving continued growth and positive outcomes over time.

Roberts cites the example of a Cloud computing rollout, “Investing in a strong cloud infrastructure provides growth like scalability and reduced costs, but the real value comes later. Once in place, it supports future projects like data analytics and AI without requiring major new investments. The groundwork is already laid, and the benefits grow exponentially. This can propel the organization into a new era of innovation and growth. While nothing makes the impossible possible, early investments can turn the unfeasible into the feasible.”

Less Friction More Traction

A key advantage of the flywheel effect in digital investments is the reduced friction for future projects. Early IT efforts often address inefficiencies, outdated systems, and resistance to change. By resolving these challenges upfront, businesses create an environment that fosters digital innovation, with successful initial projects silencing skeptics and empowering visionaries to drive further transformation.

Says Roberts, “As the first few projects unfold, the knowledge gained builds a more skilled and adaptable workforce. This internal expertise, coupled with established tools, reduces reliance on external consultants, speeds up project timelines, and accelerates time-to-market for digital solutions.”

Roberts illustrates the flywheel mindset by citing the example of “digital-first” companies like Amazon: “Amazon’s early investments in digital infrastructure not only powered its e-commerce growth but also led to the creation of AWS, opening new growth streams and securing its leadership in cloud computing.”

Roberts recognizes the challenge of digital transformation and maintains that the flywheel principle can unlock immense strategic value, however, he notes that the flywheel effect of digital investments isn’t just a technological approach. It represents a shift in mindset.

“As organizations realize the compounding benefits of their initial digital efforts, they become more aware of innovation opportunities and are more agile in responding to market demands. This proactive approach distinguishes digitally mature organizations; it’s not just about having the latest technology, but about fostering a culture that actively seeks and values digital opportunities,” concludes Roberts.

Explore the strategic advantages of a Virtual CIO or CTO by visiting Jeff Roberts’ LinkedIn page, checking out the Innovation Vista website, or gaining unique insights into the rapidly evolving landscape of digital business on the Innovation Vista YouTube channel.

Published by: Holy Minoza