Most Companies Unable to Achieve Project-to-Product Transformation
April 12, 2023
Share this

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

Share this

The Latest

June 20, 2024

The total cost of downtime for Global 2000 companies is $400 billion annually — or 9% of profits — when digital environments fail unexpectedly, according to The Hidden Costs of Downtime, a new report from Splunk ...

June 18, 2024

With the rise of digital transformation and the increasing reliance on applications for business operations, the need for application performance management (APM) has become more critical ... This blog explains what APM is all about, its significance and key features ...

June 17, 2024

Generative AI (GenAI) has captured significant attention by redefining content creation and automation processes. Despite this surge in GenAI's popularity, it's crucial to highlight the continuous, vital role of machine learning (ML) in underpinning crucial business functions. This era is not about GenAI replacing ML; rather, it's about these technologies collaborating to supercharge intelligent automation across industries ...

June 13, 2024

As organizations continue to navigate their digital transformation journeys, the need for efficient, secure, and scalable data movement strategies has never been more critical ... In an era when enterprise IT landscapes are continually evolving, the strategic movement of data has become a cornerstone of maintaining agility, competitive edge, and operational efficiency ...

June 12, 2024

In May, New Relic published the State of Observability for IT and Telecommunications Report to share insights, statistics, and analysis on the adoption and business value of observability for the IT and telecommunications industries. Here are five key takeaways from the report ...

June 11, 2024
Over the past decade, the pace of technological progress has reached unprecedented levels, where fads both quickly rise and shrink in popularity. From AI and composability to augmented reality and quantum computing, the toolkit of emerging technologies is continuing to expand, creating a complex set of opportunities and challenges for businesses to address. In order to keep pace with competitors, avoiding new models and ideas is not an option. It's critical for organizations to determine whether an idea has transformative properties or is just a flash in the pan — a challenge tackled in Endava's new 2024 Emerging Tech Unpacked Report ...
June 10, 2024

The rapidly evolving nature of the industry, particularly with the recent surge in generative AI, can catch firms off-guard, leaving them scrambling to adapt to new trends without the necessary funds ... This blog will discuss effective strategies for optimizing cloud expenses to free up funds for emerging AI technologies, ensuring companies can adapt and thrive without financial strain ...

June 06, 2024

Software developers are spending more than 57% of their time being dragged into "war rooms" to solve application performance issues, rather than investing their time developing new, cutting-edge software applications as part of their organization's innovation strategy, according to a new report from Cisco ...

June 05, 2024

Generative Artificial Intelligence (GenAI) is continuing to see massive adoption and expanding use cases, despite some ongoing concerns related to bias and performance. This is clear from the results of Applause's 2024 GenAI Survey, which examined how digital quality professionals use and experience GenAI technology ... Here's what we found ...

June 04, 2024

Many times customers want to know why their measured performance doesn't match the speed advertised (by the platform vendor, software vendor, network vendor, etc). Assuming the advertised speeds are (a) within the realm of physical possibility and obeys the laws of physics, and (b) are real achievable speeds and not "click-bait," there are at least ten reasons for being unable to achieve advertised speeds. In situations where customer expectations and measured performance don't align, use the following checklist to help determine the reason(s) why ...