September 17, 2024 – Broadcom today announced the results of new research which found the majority of organizations are continuing to shift to a product-based business model supported by Digital Product Management (DPM). In fact, 91% state DPM solutions facilitate the migration from projects to products. The survey of more than 800 executives, IT and business leaders indicates DPM is a significant driver of key business objectives, including improved product quality and increased customer value.
Digital Product Management (DPM) addresses the shifts occurring in technology management brought about by digital transformation. As part of Value Stream Management, DPM allows organizations to fund their most-valuable investments and prove the ROI to the business. DPM also provides a way for the Project Management Office (PMO) to evolve with the business, connecting it to enterprise value streams. Through simplified governance, stakeholder engagement, and greater agility, DPM emphasizes value throughout the development process.
Companies consistently focusing on customer value, continuing a shift toward product-based models in 2024
This research builds upon the findings of this same survey conducted in 2022 to establish trends and understand organizational priorities. Comparing the results of these two surveys reveals that companies are consistently focused on efficiency, product quality, and customer value. To better achieve these aims, 84% of respondents indicated they are migrating from a project-oriented approach to a product-focused philosophy. This move is primarily driven by a desire for several outcomes including improving customer value (65%), followed by aligning with their digital transformation methodology (55%), which is crucial for success in today’s business landscape. Another 53% of respondents cited increasing their competitiveness within the market as the reason for this shift.
DPM accelerates product philosophy adoption, internal and external communications
In order to gauge the value that DPM has delivered to organizations, participants were asked about the effects DPM has had on their shift towards product-based business models.
- 91% state digital product management solutions facilitate the migration from projects to products
- 91% share that digital product management solutions better align businesses and customers
- 91% report digital product management solutions improve internal communication between business leaders and development teams
- 93% will add new products to their digital product management solution, increasing utilization
In 2022, just under three quarters (74%) were moving to a product approach and away from a project-by-project strategy. This migration has surged to 84% in 2024. In conjunction, 86% of respondents in 2022 stated that DPM inspires innovation as employees focus on customer needs, fostering new ideas for products, solutions, and services. This number grew to 91% in 2024 indicating both greater utilization and maturity of DPM initiatives.
Enabling efficient digital transformation
The adoption of DPM has not only enabled organizations to shift their business approach to a consumer and product-focused model but has also delivered great returns for organizations undergoing digital transformation. In fact, 97% of participants have a digital transformation initiative or plan to have one, representing a strong trend toward market-wide industry adoption. Those surveyed were asked about the relationship between their adoption of DPM and their digital transformation initiatives, with 94% confirming digital product management solutions make digital transformation easier.
“As the business world increasingly moves toward digitalization, DPM enables organizations to make the investments that provide the most value to their business. By delivering customer value more efficiently, enabling greater collaboration and innovation across teams, and simplifying the path to digital transformation, DPM provides a critical competitive advantage,” said Brian Nathanson, head of product management, Clarity, Agile Operations Division, Broadcom Software.
The full report, “Digital Product Management Delivering Increased Customer Value,” is available here.
Methodology
Individuals with digital product responsibilities at enterprise companies representing all seniority levels were invited to participate in a survey on their company’s DPM and digital transformation initiative’s progress, benefits received, and challenges encountered.
A total of 804 qualified participants completed the global survey, 501 in 2024 and 303 in 2022. All participants had digital product or leadership responsibilities. Participants represented numerous countries from 5 continents representing a global viewpoint. The survey was administered electronically, and participants were offered token compensation for their participation.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.
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