A survey of 501 executives finds 83% already have a digital transformation initiative underway, with another 12% planning to start one in the next 18 months.
Conducted by the market research firm Dimensional Insight on behalf of Broadcom, the survey also finds that 94% of respondents have found it easier to manage those initiatives following the adoption of a digital product management (DPM) platform.
A full 84% also reported their organization has adopted a product focus for managing these initiatives instead of relying on a project-by-project strategy. The top reasons for making that shift are to improve customer value (65%), align digital transformation methodologies (55%) and improve competitiveness (55%).
A full 91% also noted that a DPM platform has helped facilitate that transition, with the top benefits cited being increased efficiency (67%), improved collaboration (64%) and better alignment between customer needs and business objectives (58%), the survey finds.
DPM platforms, in general, make it simpler to apply best value stream management (VSM) practices to the ongoing development of digital services. The overall goal is to drive meaningful cultural changes across an organization, says Brian Nathanson, head of product management for Clarity project management software at Broadcom.
For example, the survey finds that in addition to spurring innovation (91%), an equal percentage said DPM platforms improve communication between business leaders and development teams. A full 93% also said they plan to manage additional products and services via their DPM platforms over the course of the next 18 months.
In the absence of that DPM capability, it becomes exceedingly more difficult to achieve business transformation goals, he adds. A DPM platform makes it simpler to centrally apply VSM principles in a way that makes it simpler to focus the efforts of an organization, says Nathanson. “It’s a way of thinking,” he says. “Otherwise, people tend to resist change.”
VSM traces its lineage back to lean manufacturing methods, which called for each step of a manufacturing process to be continuously measured. As software engineering has evolved from being a craft to a methodology that drives digital transformation there is, for example, greater appreciation for the value of tracking the impact that missed software development deadlines will have on revenue streams.
It’s not clear to what degree organizations are adopting VSM principles, but as organizations realize the degrees to which they are now dependent on software to drive revenue, interest in VSM and DPM platforms is clearly rising. In fact, investors increasingly expect business and IT leaders to have these insights available at the tip of their fingers.
Of course, with the rise of artificial intelligence (AI) it might be only a matter of time before the VSM and DPM issue is forced. AI presents an opportunity to not only reengineer how products and services are built and consumed, but also how organizations are structured. The only thing left to be determined now is the extent to which that transformation will soon inevitably occur.
