Report: Digital Product Management Finds Its Place

The relatively new practice of digital product management is helping organizations better achieve their goals by shifting to a product-centric business model, according to a new report from Dimensional Research, sponsored by Broadcom Software.

Digital Product Management (DPM) encompasses traditional product management, but adds continuous improvement through experimentation and validation, as well as leveraging metrics such as OKRs to make informed decisions about products. In all organizations, budget, teams, and tasks are connected to business goals to better understand how their product performance affects the business. This, in turn, helps organizations improve their productivity and efficiency.

One of the biggest obstacles facing IT – especially now that software drives business results to a large extent – is that there remains a real lack of understanding between the business and development teams who should be working together. . Laureen Knudsen, Head of Transformation in Agile Operations at Broadcom Software, explained, “I’m on Forbes advice. And they ask these questions that you answer, and you end up in a panel article. And one of the questions they asked was, there’s a lot of feedback coming through to the technical teams, how do you prioritize it? And I was the only person who said, “You don’t do it, you dump it on the business.” To the right? You bring everyone in the company together and prioritize them because that’s not my job as a technology leader. It’s the business leader, but there’s so many people who’ve done it wrong, down to agility, trying to say now this is how you do something, but it’s is just a poor implementation. And it is a lack of understanding. I thought if Forbes didn’t even understand where the prioritization should be, we’d be in trouble.

Yet organizations are mobilizing to address these issues. Focusing on business priorities for 2022, the report found that 56% of responding organizations are undertaking initiatives to deliver more customer value, followed by improving product quality at 52%. Half are focused on improving efficiency and 40% on delivering products reliably, according to the report.

Knudsen said the problem is particularly acute in companies that create software not for sale but for internal use. “You need companies, especially those that aren’t selling software they’ve built in-house, to know what that means at the design level and at the product management level,” he said. she declared. DPM helps them focus on the importance of the software they are building for this internal use and how it helps bring value to the customer – who in this type of case is the employee, a- she noted.

Organizations, she said, that try DPM and work on it “actually find that it’s really beneficial for them when they understand what their employees need and what they really need to do.”

When it comes to DPM initiatives helping organizations create value, consider them a work in progress or just a fad, 94% said DPM was successful and brought value to their business, according to the report. . 86% said DPM helped them better connect business goals and customer needs, while 89% said DPM solutions facilitated digital transformation.

Shifting from a focus on software projects to software products is at the heart of digital transformation and value stream management, which provides organizations with a view into their processes to eliminate bottlenecks and enable production to proceed in a predictable manner.

The report further revealed that the adoption of DPM faces some challenges, with respondents saying the main challenge is resistance to change. Half said integrating DPM with other applications and systems has proven difficult. Yet 89% said that despite these obstacles, their companies are adding new products to their DPM solution and process in the next 18 months.

“DPM may be a young methodology, but as this research shows, it has very quickly proven its value to companies that have adopted it,” Knudsen said. “DPM is not a solution looking for a problem, but rather a solution and an enabler for a direction that companies already have taken.”