Tuesday, January 19, 2021

Product-based IT: A bold shift to business value

Innovative CIOs make shift to managing IT as a product

The shift toward product-centric IT has accelerated of late, as more IT leaders find project-based delivery models untenable for achieving their digital transformation aspirations.

In traditional project management, business units build software, churning through task lists and tracking budgets against carefully calibrated timelines. The overall organizational strategy and roadmap is typically not considered in project-based IT delivery models, and waterfall is the preferred development method within these fiefdoms, which jealously hoard KPIs and other metrics that help gauge business value, according to analyst firm Gartner.

Product-led models, on the other hand, are fueled by cross-functional, co-located teams comprising developers, product managers and business analysts who work together to craft business capabilities. Such teams employ agile and DevOps methodologies to provide continuous, iterative delivery of a specific product feature in a business process, such as search or order fulfillment. They measure value streams — the set of interactions required to produce meaningful outcomes — with KPIs accessible to all.

Whereas project management structures result in slower delivery timelines and questionable outcomes, product-centric IT models yield quicker business results, improved customer experiences and reduced organizational friction, boosting trust as the business aligns toward the same goals, Gartner says.

This ongoing shift toward product-based IT underscores how traditional companies are following in the footsteps of Facebook, Uber and other digital-native companies whose products are designed to delight consumers.

Product model accelerates digital home remodeling

Power Home Remodeling is one such organization teaming up software developers, Scrum masters, site reliability engineers and business staff to build digital products that better serve the needs of the company’s employees and customers.

Copyright © 2021 IDG Communications, Inc.

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