The State of Modern Product Delivery

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Information about The State of Modern Product Delivery

Published on February 20, 2014

Author: jamasoftware



Modern Product Delivery is the process of connecting your business to your product development process, from concept to launch — and it’s mission critical. Why? Your core business value derives from the product you deliver to customers.

To illuminate the trends in product delivery today, Jama Software partnered with Forrester Consulting on an industrywide survey. We’ve distilled the results into three challenges that all companies must address: speed, complexity and misalignment.

So, how does your company stack up? Take a look at the data in the infographic and visit for more information.

20MODERN PRODUCT 1 4 DELIVERY STATE OF MODERN PRODUCT DELIVERY is the process of connecting your business to your product development process,from concept to launch — and it’s mission critical. Why? Your core business value derives from the product you deliver to customers. Approximately 700 of the Fortune 1000 have joined the list in the last decade, a shake-up that speaks to the changing competitive landscape. Companies are under pressure to push higher-quality, smart products to market even faster. How do large companies with billions of dollars in revenue respond to disruption to deliver products that meet customer needs? To illuminate the trends and challenges in product delivery today, Jama Software partnered with Forrester Consulting on an industrywide survey, “The State of Modern Product Delivery.” We’ve distilled the results into three challenges that all companies must address: speed, complexity and misalignment. ABOUT THE SURVEY Forrester Consulting conducted in-depth surveys with 150 senior business and IT professionals at enterprise organizations. 61% OF RESPONDENTS WORK FOR COMPANIES WITH AT LEAST $5 BILLION IN ANNUAL REVENUE 57% OF RESPONDENTS WORK FOR COMPANIES WITH 20,000 EMPLOYEES OR MORE 0% 10% 20% 30% 40% 50% FOR 96% OF RESPONDENTS, EXECUTIVE LEADERSHIP IS INVOLVED IN THE PRODUCT DELIVERY PROCESS 35% OF COMPANIES HAVE BETWEEN 6-100 EXECUTIVE LEADERS INVOLVED IN PRODUCT DELIVERY 60% 5% 15% 25% 35% 45% 55% 65% 20,000 OR MORE 57% 1 TO 5 61% 5,000 TO 19,999 25% 6 TO 20 25% 1,000 TO 4,999 14% 21 TO 50 7% 500 TO 999 3% 51 TO 99 3% LESS THAN 500 1% N/A 4% These are complex organizations with at least 20,000 employees and $5 billion in annual revenue. These kinds of companies are meeting disruption head on, out-innovating their competition and delivering value to the business. 0% 10% 20% 30% 40% Product Delivery is the last frontier in the enterprise. Traditionally relegated to the product and engineering teams (until something goes wrong), product delivery in modern organizations is a cross-departmental activity, involving stakeholders from across the business, including a significant number of executive leaders. 50% 60% COLLECT AND COMMUNICATE REQUIREMENTS COLLECT AND COMMUNICATE ISSUES 50% DEVELOP DECISIONS 45% SCOPE DECISIONS 44% VALIDATE REQUIREMENTS WHAT IS YOUR AREA OF INFLUENCE IN PRODUCT DELIVERY? 55% SPEED MATTERS. The quicker you can get a product into customers’ hands, the faster you get feedback and ultimately realize value. 42% SPEED COMPLEXITY IS A REALITY. Both product complexity and organizational complexity is growing across all areas. COMPLEXITY MISALIGNMENT WREAKS HAVOC. Communication is getting harder in today’s modern organizations. MISALIGNMENT SPEED MATTERS. This is nothing new. But companies are releasing products more frequently than ever before. Quarterly releases have become the gold standard, while an increasing number of teams are releasing almost continuously. Yet, a third of companies are still delivering late. SPEED What’s causing the delays? Not surprisingly, unclear or changing requirements is the most common reason. Year after year, requirements — the very core of any product, the what you’re building and why — are the root cause of failure. But, what's new this year is the recognition that slow decision-making also leads to product delays. ⅓ HOW OFTEN ARE COMPANIES RELEASING PRODUCTS? 25% 25% are the disruptors 42% 70% 70% 18% 30% 15% 58% OF COMPANIES RELEASE PRODUCTS LATE TOP 5 REASONS FOR PRODUCT DELAYS release monthly or more 0% 5% 10% 15% 20% 25% Quarterly or more Weekly or more PRODUCT DEVELOPMENT PROCESS 0% 5% 10% 15% 20% WHY COMPANIES CHOOSE THEIR PROCESSES 25% 30% 35% 40% TRADITIONAL LINEAR 36% HYBRID TRADITIONAL-ITERATIVE 19% DON’T KNOW 2% 9% 8% HALF OF RESPONDENTS SAY WHEN A RELEASE IS LATE IT TAKES UP TO 150% OF ITS ORIGINAL EXPECTED TIMELINE 20% DIFFERENT BY TEAM 12% 23% ITERATIVE 9% 12% RESOURCE COORDINATION PROBLEMS Monthly or more 15% LACK OF RESOURCES Daily or more 23% QUALITY ISSUES OF THE 70% WHO SAID QUARTERLY OR MORE Quarterly or more Quarterly or less UNCLEAR OR CHANGING REQUIREMENTS DELAYED DECISIONS 100% OF RESPONDENTS 41% 38% We would use agile but cannot due to funding We would use agile but our business is unprepared It best meets our needs given our team composition and skills We would use agile but cannot due to team coordination needs Actual Timeline Expected Timeline PRODUCT COMPLEXITY IS GROWING. As products get “smarter” and combine hardware and software, building them becomes more complicated. Products have more requirements, and companies have more products in their portfolios. One application might have numerous variants – mobile, desktop, web, and the different platforms and devices. Suddenly, the product line multiplies into the hundreds. COMPLEXITY Organizational complexity is growing also. Thousands of people work on products in a company’s portfolio. Only 4 percent of those employees are co-located in close proximity. Additionally, different teams use different processes. Tackling organizational complexity to keep everyone connected to the work is the key to product delivery success. NUMBER OF PRODUCTS IN A COMPANY’S PORTFOLIO NUMBER OF TEAMS PARTICIPATING IN A PROJECT 87% HAVE MULTIPLE TEAMS 55% 38% HAVE OVER 100 64% HAVE AT LEAST 4 TEAMS 41% HAVE 4 TO 6 TEAMS 4% LESS THAN 10 S AT L 23% EAS T4T EAM 21% 3% 2-3 23% TEAM S 100 17% 87% % 17% DON’T KNOW 41% 4 TO 6 TEAMS 64% 50 TO 99 10 TO 49 100 TO 249 OVER 250 23% ONLY 4% OF STAKEHOLDERS ARE CO-LOCATED IN CLOSE PROXIMITY OF PRODUCTS CONSIST OF HARDWARE AND SOFTWARE / FIRMWARE NUMBER OF TEAM MEMBERS ON A PROJECT 0% 10% 20% 30% 40% 50% 53% SAY DIFFERING BUSINESS PRIORITIES IS THE MAIN PROBLEM WITH TURNING IDEAS INTO PRODUCTS 60% 6 TO 10 51% 2 TO 5 18% 11 TO 20 17% 20 + 12% DON’T KNOW 2% PRODUCT DELIVERY SUFFERS FROM MISALIGNMENT on top of increasing MISALIGNMENT complexity and the pressure to release faster. When critical product information is lost in emails or locked up in documents, your teams can’t be on the same page. Likewise, misalignment leads to expectation gaps between the development team and the business, and between the business and external customers. When you don’t meet customer expectations, your products will fail and you won’t realize business value. For two-thirds of companies, customer satisfaction is the No. 1 measure of success. But almost half of companies say they aren’t meeting customer needs. It’s our job to understand the challenges customers face and problems they are trying to solve. 64% OF RESPONDENTS SAY IMPROVED CUSTOMER SATISFACTION IS THE NUMBER ONE MEASURE OF A SUCCESSFUL PRODUCT ALMOST HALF OF PRODUCTS FAIL TO MEET CUSTOMER NEEDS 48% of respondents say they deliver solutions that give customers what they ask for, but sometimes do not meet their needs 5% Other 47% of respondents say they consistently deliver solutions to meet customer needs even when they ask for something different COMMON PROBLEMS DURING PRODUCT DEVELOPMENT TOP FIVE PROBLEMS BRINGING PRODUCTS TO MARKET 0% 5% 10% 15% 20% 25% 30% EXPECTED VALUE AND ACTUAL VALUE DO NOT MATCH 30% VALUE IS NOT COMMINICATED TO THE ORGANIZATION 29% DO NOT ENCOUNTER ANY PROBLEMS DURING THIS PHASE 27% DO NOT HAVE EFFECTIVE GO-TO MARKET STRATEGY 27% DO NOT COMMUNICATE PRODUCT VALUE TO CUSTOMER 26% WHEN PEOPLE ARE LOOPED IN LATE, COMPANIES CANNOT 27% 31% COMMUNICATE VALUE. 31% THIS IS A TOP CAUSE OF PRODUCT DELIVERY DELAYS. SOLUTION 48% Miscommunication of goals and requirements slow progress Technology issues slow progress Quality issues affect schedule and/or final deliverable Resource constraints slow progress CLEARLY, EVERY INDUSTRY IS BEING DISRUPTED. With the realities of today’s product complexity, the greater influence of the customer and the evolution in business processes and tools, change is afoot. In order to serve customer needs, you must align teams and iterate quickly. Delight the customer and you deliver value. Fail to meet customer needs, you lose and the stakes only go up. It’s time to elevate product delivery and work in a way that enables fast decisions, reuse and stakeholder involvement. MAKE DECISIONS FASTER REUSE YOUR ASSETS INVOLVE STAKEHOLDERS Making decisions quickly unblocks teams, so everyone can iterate faster and get products to market. The quicker you get products into customers’ hands, the quicker you get feedback and realize value. Your product data is a strategic asset. When you are managing product lines in the triple digits, reusing your IP across products can dramatically increase your time to market. Bring stakeholders in and keep them connected throughout the process. Stakeholders have insight into customer needs, and they need visibility and a voice so they aren’t surprised by decisions or changes. THE OLD WAY DOES NOT WORK. Most organizations are still stuck in the old way of doing things. They focus on the project’s tasks and look for ways to stop or manage change. They’re slow; they send documents via email attachments and have meetings to discuss decisions. Transform your business by shifting to the new way of working. Don’t think about how to manage or contain change; embrace it. Empower people to make decisions based on the new information they get every day. To make sure your product isn’t straying from your core business value, bring in stakeholders and provide context so that everyone understands what they’re building and why. OLD WAY NEW WAY - Focus on tasks - Focus on outcomes - Control change - Embrace change - Confine communication - Bring stakeholders in - Limit context - Provide context in real-time THE NEW WAY IS MODERN PRODUCT DELIVERY Innovators are working this way. You can do it too, and Jama can help. Learn more at build great products | | 1.800.679.3058

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