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Signals Funding is an approach where budget, collective capabilities, and resources are allocated based on key signals from the external environment that indicate opportunities for innovation or areas that require development to mitigate potential risks.

Rather than funding fixed organizational structures like teams, departments or value streams, signals funding provides resources to groups based on strategic priorities highlighted through the organization's sensing mechanisms.

For more detailed information about it, check Enterprise Agility Fundamentals, Chapter 9.

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