Many companies are unable to complete transformational work due to immature operating models and management systems, according to the 2023 Project to Product State of the Industry Report from Planview.
The report found that only 8% of organizations have successfully operationalized their project to product transformation. The low success rate contradicts the previously optimistic outlook from a 2018 report claiming that 85% of executives said they had either adopted or had plans to adopt a product-centric model, motivated by a desire to improve speed to market and agility and to support the move to digital business. Five years later, the report's data underscores the complexity of this multi-year process and its required buy-in and commitment across all levels of the organization.
"In boardrooms across the globe, executives are being mandated to prioritize technology investments that ensure their companies transform and emerge from the current downturn stronger. While some enterprise initiatives are managed as projects, a product-based operating model holds the key to increased efficiency, better customer outcomes, and profitable growth for digital portfolios," said Dr. Mik Kersten, CTO, Planview and author of Project to Product: How to Survive and Thrive in the Age of Digital Disruption with the Flow Framework. "The consequences of slow delivery and technical debt can be seen in very public profit losses and system-wide malfunctions. While there are no shortcuts, there is a roadmap of best practices that accelerates the transition, which the report outlines."
The report reveals that five years into the shift from project to product:
■ 92% of businesses do not have the foundation for a product-oriented model, causing their digital transformation efforts to fail.
■ Business leaders believe their IT and software development teams, in charge of transformation efforts, can deliver 10x more than their actual capacity, leading to team burnout.
■ 40% of digital innovation work from IT and engineering teams are wasted due to shifting priorities at the C-level.
■ Only 8% of what's planned by IT and software development teams gets delivered, inefficiency that can no longer be ignored given today's cost and performance pressures.
Given the criticality of this shift for the future success of traditional companies versus early adopters, the report outlines the critical steps needed to accelerate this transition: a partnership between executives and senior product and development leadership to do the following:
1. Benchmark their progress versus their competitors.
2. Understand and implement best practices to shorten the time it takes to capture the ROI of transformation efforts.
3. Identify the organizational attributes that increase the likelihood of operationalizing the product model by learning which efforts to prioritize.
Methodology: The report combines survey data from 326 respondents with systems data from 3,600+ software development value streams in 34 of the world's leading enterprises
The Latest
Broad proliferation of cloud infrastructure combined with continued support for remote workers is driving increased complexity and visibility challenges for network operations teams, according to new research conducted by Dimensional Research and sponsored by Broadcom ...
New research from ServiceNow and ThoughtLab reveals that less than 30% of banks feel their transformation efforts are meeting evolving customer digital needs. Additionally, 52% say they must revamp their strategy to counter competition from outside the sector. Adapting to these challenges isn't just about staying competitive — it's about staying in business ...
Leaders in the financial services sector are bullish on AI, with 95% of business and IT decision makers saying that AI is a top C-Suite priority, and 96% of respondents believing it provides their business a competitive advantage, according to Riverbed's Global AI and Digital Experience Survey ...
SLOs have long been a staple for DevOps teams to monitor the health of their applications and infrastructure ... Now, as digital trends have shifted, more and more teams are looking to adapt this model for the mobile environment. This, however, is not without its challenges ...
Modernizing IT infrastructure has become essential for organizations striving to remain competitive. This modernization extends beyond merely upgrading hardware or software; it involves strategically leveraging new technologies like AI and cloud computing to enhance operational efficiency, increase data accessibility, and improve the end-user experience ...
AI sure grew fast in popularity, but are AI apps any good? ... If companies are going to keep integrating AI applications into their tech stack at the rate they are, then they need to be aware of AI's limitations. More importantly, they need to evolve their testing regiment ...
If you were lucky, you found out about the massive CrowdStrike/Microsoft outage last July by reading about it over coffee. Those less fortunate were awoken hours earlier by frantic calls from work ... Whether you were directly affected or not, there's an important lesson: all organizations should be conducting in-depth reviews of testing and change management ...
In MEAN TIME TO INSIGHT Episode 11, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Secure Access Service Edge (SASE) ...
On average, only 48% of digital initiatives enterprise-wide meet or exceed their business outcome targets according to Gartner's annual global survey of CIOs and technology executives ...
Artificial intelligence (AI) is rapidly reshaping industries around the world. From optimizing business processes to unlocking new levels of innovation, AI is a critical driver of success for modern enterprises. As a result, business leaders — from DevOps engineers to CTOs — are under pressure to incorporate AI into their workflows to stay competitive. But the question isn't whether AI should be adopted — it's how ...
