Digital transformation and

its implication for future

product management

Project Management
Prof. Ramanuj Majumdar

Submission by
Pakshal Jain
Reg no 0462/55
Preamble

Digital transformation, as defined by Constellation Research, is “the methodology in

which organizations transform and create new business models and culture with
digital technologies.” It is a disruption that every organization big or small is gearing
for and adopting at a more accelerated rate than ever. For they have understood that
the prevailing status quo is becoming redundant and sluggish to the changing nature
of time and that digital transformation is the only way forward.
Digital era has created disruptions in the manner businesses function these days.
The definition of product as we understand has modified during the last decade,
specifically as more companies are moving into technology offerings. With these
changes, a product manager wishes to evolve and adapt with the modern-day
international traits. With increase in software product offerings to the customer, the
complexity of product services is increasing day by day. Managers now should aim
to gain insight on consumer needs and provide services which the user may not
essentially apprehend as one, however adds value. For example, while Spotify offers
recommendation based on its analytics, or while Google Home seamlessly
integrates together with your Google Calendar and Task lists, it's a add on to the
product offering. Product life cycles are hastily shrinking. Seeing how swiftly
technology evolves every day, managers need to be agile with numerous
alternatives available to them, have a fundamental understanding of the technology.
The companies have to prepare for the future and construct skills for development
and innovation. They need to shift from ‘Learning before doing’ to ‘Learning by doing’
model. All these changes have evolved the role of Product Managers. They now
must figure out different customer segments, distinct channels to reach out to them,
new revenue models, pricing method, appropriate bundling of services and lots
more. Product managers now need to be well aware about the technology and be
able to overseeing the application interface as a product, discover key stakeholders
and manage the entire ecosystem, not simply the product as visible via the
consumer.
Also, with the advent of big data and IOT, companies will have a number of data
points on its customer Such overwhelming data needs to be processed to generate
the right insights of product usage and consumer experience. The product manager
now must be aware and conscious about the right metrics to use both in offline and
on-line channels to garner the maximum value.
Technology disruptions cause the firm to make changes and a product manager
performs a pivotal role in enforcing those modifications. The new product
management team should be a mix of marketing, technology and finance
employees. They need to continuously evolve their processes and learn continuously
with a purpose to build dynamic groups. In this report we will explore the areas
wherein companies are not able to adapt to the changes and propose a roadmap for
their transition
Business Assessment

Many businesses are unprepared or underprepared and some even far from getting
prepared to embrace this transformation. There are however, varied reasons and
causes for this state of affair. These companies may face a number of inherent
challenges in digital transformation. Let’s now deliberate over some of the top
challenges faced.
1-Organizational Culture- A Hindrance to Change
Most of the companies have a culture which is ingrained since their inception. They
have a prescribed way of working and doing business. The employees follow these
prearranged methods on a day to day basis and this is precisely the kind of culture
that can be a big hindrance to digital transformation. The culture of the organization
limits the employees to be receptive to change

2-Change Is Expensive

Just like how change is not easy, it is also not free. Getting your company digitally
transformed requires money and the cost of innovation can be a huge barrier. Many
Indian companies lack the revenue that is required for this end-to-end transformation
and it is thus, a big challenge faced by many companies. The result of which makes
the adoption to digital transformation very sluggish.

4-Lack of Strategy For A Digital Customer Drive

Sometimes the company may launch its digital transformation journey but lack a clear
strategy or vision. What they desire, need and what they will do when they grow up
digitally for the clients and customers, are often left unanswered. Therefore, having a
vision and a strategy in place is essential. It is in fact a pre-requisite since it ensures
that you know what the necessary steps are to reach the final desired destination.
Further, it is important to know how you will treat your customer, to know the policies
and engagement models you are going to establish for them and for the business. The
companies can in no way just get on a journey without knowing the next steps. And
this again is a big challenge the companies face. They embark upon a transition
without having a clear vision or strategy in place.

5-Resource Availability

Finding good resources, those who are inventive and technologically sound is a huge
challenge and a major obstacle to digital transformation. An ideal organization will
have individuals who are open to changes, information seeking and knowledge
sharing. They should be embracing and implementing technology at every step, in all
the deliveries and on day to day basis. Inept workforce with a rigid, old school mindset
and technologically backward are a big hindrance to digital transformation.
5-Project control stubs product control
Majority of Indians are employed in service domain and as a result missing the
product mind-set. The role of project manager is seen as more desirable than that of
a product manager. Thus the pool of available product managers is shrinking. It is at
a point where companies are willing to pay thrice as much to project managers due
to their scarcity
6-Mismatch between education and on-job requirements
The design of academic curriculums and the way wherein youngsters get hold of
school room schooling is growing a mismatch among enterprise expectancies and
the ability set that the student possess. The majority of students for that reason fails
to look beyond the plain, question the whole lot, discover and live curious. What
enterprise seeks is creativity, will to experiment while also being tech savvy.
7- Failure to focus on consumer experience as a whole
Companies lose sight of the target segment at times and focus solely on the product
offering. Instead they should be following consumer centric approach and design an
entire ecosystem around product to give enhanced user experience.
9- Changing legal environment and consumer awareness about data security
Some companies are highly dependent on user generated data and with recent
concerns on data privacy and new laws being passed, companies might have to
revisit their business models. This might discourage other companies from
experimenting with newer business propositions that are driven by user data
insights.
Embracing modern practices to counter the roadblocks
We shall now discuss the transformation that may be carried out companies to
compete in the digital age. Look at a few examples how they have implemented the
changes and its impact
1-Customer-centricity:
Ultimately, these shifts are all focused on providing better service and a better
experience for your customers. companies should not only focus on product but also
in building an ecosystem around it. Product manager needs to focus on creating a
value for the consumer instead of just offering a product. For example, when a food
delivery company like Swiggy alerts a user via SMS about delivery status and its
location, it is adding value for the consumer
2) Integrate Essential Digital Marketing Elements into the Product
Managers recognise that word of mouth takes place hugely over social media and as
a consequence the advertising approach hired ought to have digital element to it.
Companies can now cope with diverse consumers on different channels and
correctly target them. They additionally get to construct robust consumer groups
who're willing to endorse the stated product and as a result make contributions to
word of mouth advertising and marketing. A product manager’s purpose is to make
use of the factors of viral advertising to attain out to maximum target audience and
convert them to devoted customers.
3) Identifying the right metrics
First, we need to define the key metrics that could successfully monitor the products
development. The different metrics to consider are unique users, new vs. returning
customers, demographic segmentation, click through rate , sales funnel conversion
metrics such as result in trial, trial to paid. Business overall performance metrics
together with customer lifetime time value and customer acquisition cost
4) Build a Social Media Strategy for the Product
Companies need to balance paid, owned and earned media to obtain maximum
benefit. We all know the impact of earned media on a brand and social media
performs a key function in shaping that perception. Social media additionally serves
as comments loop for product managers as customers can without delay voice their
problems with the organization. There are a couple of gear to be had that help in
analysing social media mentions and conversations about a brand.
5- Integrate UI Wire-Framing Skills into Product Management
A consumer friendly interface is the face of the product for many companies and
therefore all recommendations have to be taken into consideration even as
designing the skeleton of the person interface. Research shows that user interface is
one of the key parameter that customer consider while buying/subscribing to a
technology product
6-Assess effect of Mobility and Connected Devices
Growth in smartphone penetration, reasonably-priced mobiles, interactive interface
and clever gadgets has elevated the mobility between TV screens and handheld
gadgets. With connected devices like google home and Alexa are gaining popularity
its is important for product managers to keep continuously innovating and adding on
to the product capabilities.

7-Collaborative:

Every member of the organization is meaningfully involved in achieving a shared

vision. This means working together at different levels of the organization and across
teams to build trust, promote transparency, and engage employees.

9-Cultural changes:

Requires shifting away from traditional business structures and hierarchies and
empowering employees to make decisions and contribute ideas.

9-Cloud-based:

Cloud-based services are economical and agile, allowing businesses to choose the
ones that meet their needs and streamline their IT and infrastructure costs.

10-Continuous

This isn’t a project with a start and end date. Technology will continue to evolve and
call for adaptations to current processes, which means you need to keep learning
and evolving. It’s important for the product manager to identify new technology
disruptions and formulate strategies to deal with the change

11-Data-driven

This includes not only collecting and analyzing data about your customers but
measuring what’s happening inside your company too. Building the right ecosystem
where data can move across different verticals and be utilised in forming strategies,
for example many times company’s can sit on a load of data but don’t have the
capabilities to analyse it in a way which will provide a competitive advantage
Action Plan

We have looked in detail at the roadblocks organization face in transforming the

business and also analysed the way they can overcome it. Organisations can
implement certain frameworks to have a smooth digital transformation-

Recognise the Importance of Product Management

A digital transformation is a major change program that helps a company succeed in

the digital age. Embracing new technologies like machine learning, micro services,
big data, and Internet of Things (IoT) is part of that change, as is the introduction of
agile practices including cross-functional and self-organising teams, But to take
advantage of new and existing digital assets, align them with physical products and
services and create a seamless user experience, and increase the overall value
created, companies require product professionals—dedicated, qualified product
people who look after the digital assets. For some companies, this
means introducing a new department or group, creating new roles, and career plans.

Define Clear Product Roles and Responsibilities

As I have argued before, a product owner or product manager should be in charge of
a product—an asset that creates value for a group of users and the business. The
individual should manage the product for an extended period of time, usually for
several life cycle stages, not just a few weeks or months. This creates continuity of
purpose, facilitates learning, and reduces wasteful handoffs.
Individuals who own part of a product are not product but feature or component
owners in my mind. They have an important job too, but their responsibilities differ:
they are focused on their specific feature or architecture building block rather than
trying to increase the value the entire product creates. People who look after a group
of products are not product owners either, they are portfolio owners or managers. To
get the roles definition right, start by identifying the company’s products. Consider
the revenue generating assets as well as the supporting ones. Take, for example, an
insurance policy that helps people protect their home, and the digital products that
help customers select and buy the right policy. Then align the physical and digital
assets to create a consistent user experience, no matter if the policy is bought online
or in a branch, for instance.

Determine the Right Learning and Development Measures

Once you have the right roles in place, take the next step and determine
the necessary skills for each role. While there is likely to be some overlap, different
roles have different skills profiles. A component owner, for example, typically
requires strong technical skills, as the person will have to help specify interfaces and
APIs. Strategy and leadership skills are nice-to-have but not mandatory. A portfolio
owner, however, requires strong strategy and leadership capabilities including the
ability to develop a portfolio strategy and align powerful individuals.
With the desirable skills in place, assess the actual capabilities of the people who will
play the different product roles, for example, by using my product management test.
Identify gaps and weaknesses that prevent the individuals from doing a great job.
Then determine the right learning and development measures. These may include
instructor-led in-class and online training, self-study using books, videos,
and articles, and coaching sessions provided by senior product people or product
coaches.
Take into account people’s learning preferences and constraints to find the most
effective measures for each individual. Avoid generic, cookie-cutter approaches.
Don’t expect that a single two-day training course will equip people with everything
they need to know; it won’t

Make the Necessary Organisational Change

Introducing a new product management group or adapting an existing one people

requires organisational changes. These range from establishing a product culture to
empowering the product people, giving them the necessary decision-making
authority.
References:

The DNA of a Modern Product Manager: Reskilling for Product and Customer
Success inside the Digital Age,
https://www.Manipalprolearn.Com/blog/dna-current-product-manager-
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https://www.gartner.com/smarterwithgartner/how-product-managers-can-identify-and-plan-for-
technology-disruption/

http://www.businessworld.in/article/Decoding-Digital-Disruption/08-04-2019-168962/

Cognizant 20-20 Insights, Omanakuttan Namboodiri, January 2017

https://www.Cognizant.Com/whitepapers/nine-novel-methods-for-software program-
productmanagement-in-the-new-digital-age-codex1294.Pdf
Digital innovation approach: A framework for diagnosing and enhancing virtual
product and service innovation, Daniel Nylen and Jonny Holmstrom, Business
Horizons (2015) fifty eight, 57-67
https://bit.Ly/2Zsg7ZN

https://www.aureon.com/blog/how-digital-transformation-benefits-your-business

https://www.cio.com/article/3179607/e-commerce/5-top-challenges-to-digital-
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https://www.pointsource.com/blog/executing-digital-transformation-study-key-
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