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
App sprawl has been a concern for technologists for some time, but it has never presented such a challenge as now. As organizations move to implement generative AI into their applications, it's only going to become more complex ... Observability is a necessary component for understanding the vast amounts of complex data within AI-infused applications, and it must be the centerpiece of an app- and data-centric strategy to truly manage app sprawl ...
Fundamentally, investments in digital transformation — often an amorphous budget category for enterprises — have not yielded their anticipated productivity and value ... In the wake of the tsunami of money thrown at digital transformation, most businesses don't actually know what technology they've acquired, or the extent of it, and how it's being used, which is directly tied to how people do their jobs. Now, AI transformation represents the biggest change management challenge organizations will face in the next one to two years ...
As businesses focus more and more on uncovering new ways to unlock the value of their data, generative AI (GenAI) is presenting some new opportunities to do so, particularly when it comes to data management and how organizations collect, process, analyze, and derive insights from their assets. In the near future, I expect to see six key ways in which GenAI will reshape our current data management landscape ...
The rise of AI is ushering in a new disrupt-or-die era. "Data-ready enterprises that connect and unify broad structured and unstructured data sets into an intelligent data infrastructure are best positioned to win in the age of AI ...
A majority (61%) of organizations are forced to evolve or rethink their data and analytics (D&A) operating model because of the impact of disruptive artificial intelligence (AI) technologies, according to a new Gartner survey ...
The power of AI, and the increasing importance of GenAI are changing the way people work, teams collaborate, and processes operate ... Gartner identified the top data and analytics (D&A) trends for 2024 that are driving the emergence of a wide range of challenges, including organizational and human issues ...
IT and the business are disconnected. Ask the business what IT does and you might hear "they implement infrastructure, write software, and migrate things to cloud," and for some that might be the extent of their knowledge of IT. Similarly, IT might know that the business "markets and sells and develops product," but they may not know what those functions entail beyond the unit they serve the most ...
Cloud spending continues to soar. Globally, cloud users spent a mind-boggling $563.6 billion last year on public cloud services, and there's no sign of a slowdown ... CloudZero's State of Cloud Cost Report 2024 found that organizations are still struggling to gain control over their cloud costs and that a lack of visibility is having a significant impact. Among the key findings of the report ...
The use of hybrid multicloud models is forecasted to double over the next one to three years as IT decision makers are facing new pressures to modernize IT infrastructures because of drivers like AI, security, and sustainability, according to the Enterprise Cloud Index (ECI) report from Nutanix ...
Over the last 20 years Digital Employee Experience has become a necessity for companies committed to digital transformation and improving IT experiences. In fact, by 2025, more than 50% of IT organizations will use digital employee experience to prioritize and measure digital initiative success ...
