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
In Part 1 of this two-part series, I defined multi-CDN and explored how and why this approach is used by streaming services, e-commerce platforms, gaming companies and global enterprises for fast and reliable content delivery ... Now, in Part 2 of the series, I'll explore one of the biggest challenges of multi-CDN: observability.
CDNs consist of geographically distributed data centers with servers that cache and serve content close to end users to reduce latency and improve load times. Each data center is strategically placed so that digital signals can rapidly travel from one "point of presence" to the next, getting the digital signal to the viewer as fast as possible ... Multi-CDN refers to the strategy of utilizing multiple CDNs to deliver digital content across the internet ...
We surveyed IT professionals on their attitudes and practices regarding using Generative AI with databases. We asked how they are layering the technology in with their systems, where it's working the best for them, and what their concerns are ...
40% of generative AI (GenAI) solutions will be multimodal (text, image, audio and video) by 2027, up from 1% in 2023, according to Gartner ...
Today's digital business landscape evolves rapidly ... Among the areas primed for innovation, the long-standing ticket-based IT support model stands out as particularly outdated. Emerging as a game-changer, the concept of the "ticketless enterprise" promises to shift IT management from a reactive stance to a proactive approach ...
In MEAN TIME TO INSIGHT Episode 10, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Generative AI ...
By 2026, 30% of enterprises will automate more than half of their network activities, an increase from under 10% in mid-2023, according to Gartner ...
A recent report by Enterprise Management Associates (EMA) reveals that nearly 95% of organizations use a combination of do-it-yourself (DIY) and vendor solutions for network automation, yet only 28% believe they have successfully implemented their automation strategy. Why is this mixed approach so popular if many engineers feel that their overall program is not successful? ...
As AI improves and strengthens various product innovations and technology functions, it's also influencing and infiltrating the observability space ... Observability helps translate technical stability into customer satisfaction and business success and AI amplifies this by driving continuous improvement at scale ...
Technical debt is a pressing issue for many organizations, stifling innovation and leading to costly inefficiencies ... Despite these challenges, 90% of IT leaders are planning to boost their spending on emerging technologies like AI in 2025 ... As budget season approaches, it's important for IT leaders to address technical debt to ensure that their 2025 budgets are allocated effectively and support successful technology adoption ...
