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Transforming to Digital Product Management

Transforming to Digital Product Management

R. Ryan Nelson
This study analyzes the successful digital transformations of CarMax and The Washington Post to advocate for a strategic shift from traditional IT project management to digital product management. It demonstrates how adopting practices like Agile and DevOps, combined with empowered, cross-functional teams, enables companies to become nimbler and more adaptive in a fast-changing digital landscape. The research is based on extensive field research, including interviews with senior executives from the case study companies.

Problem Many businesses struggle to adapt and innovate because their traditional IT project management methods are too slow and rigid for the modern digital economy. This project-based approach often results in high failure rates, misaligned business and IT goals, and an inability to respond quickly to market changes or new competitors. This gap prevents organizations from realizing the full value of their technology investments and puts them at risk of becoming obsolete.

Outcome - A shift from a project-oriented to a product-oriented mindset is essential for business agility and continuous innovation.
- Successful transformations rely on creating durable, empowered, cross-functional teams that manage a digital product's entire lifecycle, focusing on business outcomes rather than project outputs.
- Adopting practices like dual-track Agile and DevOps enables teams to discover the right solutions for customers while delivering value incrementally and consistently.
- The transition to digital product management is a long-term cultural and organizational journey requiring strong executive buy-in, not a one-time project.
- Organizations should differentiate which initiatives are best suited for a project approach (e.g., migrations, compliance) versus a product approach (e.g., customer-facing applications, e-commerce platforms).
digital product management, IT project management, digital transformation, agile development, DevOps, organizational change, case study
Applying the Rite of Passage Approach to Ensure a Successful Digital Business Transformation

Applying the Rite of Passage Approach to Ensure a Successful Digital Business Transformation

Nkosi Leary, Lorry Perkins, Umang Thakkar, Gregory Gimpel
This study examines how a U.S. recruiting company, ASK Consulting, successfully managed a major digital overhaul by treating the employee transformation as a 'rite of passage.' Based on this case study, the paper outlines a three-stage approach (separation, transition, integration) and provides actionable recommendations for leaders, or 'masters of ceremonies,' to guide their workforce through profound organizational change.

Problem Many digital transformation initiatives fail because they focus on technology and business processes while neglecting the crucial human element. This creates a gap where companies struggle to convert their existing workforce from legacy mindsets and manual processes to a future-ready, digitally empowered culture, leading to underwhelming results.

Outcome - Framing a digital transformation as a three-stage 'rite of passage' (separation, transition, integration) can successfully manage the human side of organizational change.
- The initial 'separation' from old routines and physical workspaces is critical for creating an environment where employees are open to new mindsets and processes.
- During the 'transition' phase, strong leadership (a 'master of ceremonies') is needed to foster a new sense of community, establish data-driven norms, and test employees' ability to adapt to the new digital environment.
- The final 'integration' stage solidifies the transformation by making changes permanent, restoring stability, and using the newly transformed employees to train new hires, thereby cementing the new culture.
- By implementing this approach, the case study company successfully automated core operations, which led to significant increases in productivity and revenue with a smaller workforce.
digital transformation, change management, rite of passage, employee transformation, organizational culture, leadership, case study
Strategies for Managing Citizen Developers and No-Code Tools

Strategies for Managing Citizen Developers and No-Code Tools

Olga Biedova, Blake Ives, David Male, Michael Moore
This study examines the use of no-code and low-code development tools by citizen developers (non-IT employees) to accelerate productivity and bypass traditional IT bottlenecks. Based on the experiences of several organizations, the paper identifies the strengths, risks, and misalignments between citizen developers and corporate IT departments. It concludes by providing recommended strategies for managing these tools and developers to enhance organizational agility.

Problem Organizations face a growing demand for digital transformation, which often leads to significant IT bottlenecks and costly delays. Hiring professional developers is expensive and can be ineffective due to a lack of specific business insight. This creates a gap where business units need to rapidly deploy new applications but are constrained by the capacity and speed of their central IT departments.

Outcome - No-code tools offer significant benefits, including circumventing IT backlogs, reducing costs, enabling rapid prototyping, and improving alignment between business needs and application development.
- Key challenges include finding talent with the right mindset, dependency on smaller tool vendors, security and privacy risks from 'shadow IT,' and potential for poor data architecture in citizen-developed applications.
- A fundamental misalignment exists between IT departments and citizen developers regarding priorities, timelines, development methodologies, and oversight, often leading to friction.
- Successful adoption requires organizations to strategically manage citizen development by identifying and supporting 'problem solvers' within the business, providing resources, and establishing clear guidelines rather than overly policing them.
- While no-code tools are crucial for agility in early-stage innovation, scaling these applications requires the architectural expertise of a formal IT department to ensure reliability and performance.
citizen developers, no-code tools, low-code development, IT bottleneck, digital transformation, shadow IT, organizational agility
How Audi Scales Artificial Intelligence in Manufacturing

How Audi Scales Artificial Intelligence in Manufacturing

André Sagodi, Benjamin van Giffen, Johannes Schniertshauer, Klemens Niehues, Jan vom Brocke
This paper presents a case study on how the automotive manufacturer Audi successfully scaled an artificial intelligence (AI) solution for quality inspection in its manufacturing press shops. It analyzes Audi's four-year journey, from initial exploration to multi-site deployment, to identify key strategies and challenges. The study provides actionable recommendations for senior leaders aiming to capture business value by scaling AI innovations.

Problem Many organizations struggle to move their AI initiatives from the pilot phase to full-scale operational use, failing to realize the technology's full economic potential. This is a particular challenge in manufacturing, where integrating AI with legacy systems and processes presents significant barriers. This study addresses how a company can overcome these challenges to successfully scale an AI solution and unlock long-term business value.

Outcome - Audi successfully scaled an AI-based system to automate the detection of cracks in sheet metal parts, a crucial quality control step in its press shops.
- The success was driven by a strategic four-stage approach: Exploring, Developing, Implementing, and Scaling, with a focus on designing for scalability from the outset.
- Key success factors included creating a single, universal AI model for multiple deployments, leveraging data from various sources to improve the model, and integrating the solution into the broader Volkswagen Group's digital production platform to create synergies.
- The study highlights the importance of decoupling value from cost, which Audi achieved by automating monitoring and deployment pipelines, thereby scaling operations without proportionally increasing expenses.
- Recommendations for other businesses include making AI scaling a strategic priority, fostering collaboration between AI experts and domain specialists, and streamlining operations through automation and robust governance.
Artificial Intelligence, AI Scaling, Manufacturing, Automotive Industry, Case Study, Digital Transformation, Quality Inspection
Establishing a Low-Code/No-Code-Enabled Citizen Development Strategy

Establishing a Low-Code/No-Code-Enabled Citizen Development Strategy

Björn Binzer, Edona Elshan, Daniel Fürstenau, Till J. Winkler
This study analyzes the low-code/no-code adoption journeys of 24 different companies to understand the challenges and best practices of citizen development. Drawing on these insights, the paper proposes a seven-step strategic framework designed to guide organizations in effectively implementing and managing these powerful tools. The framework helps structure critical design choices to empower employees with little or no IT background to create digital solutions.

Problem There is a significant gap between the high demand for digital solutions and the limited availability of professional software developers, which constrains business innovation and problem-solving. While low-code/no-code platforms enable non-technical employees (citizen developers) to build applications, organizations often lack a coherent strategy for their adoption. This leads to inefficiencies, security risks, compliance issues, and wasted investments.

Outcome - The study introduces a seven-step framework for creating a citizen development strategy: Coordinate Architecture, Launch a Development Hub, Establish Rules, Form the Workforce, Orchestrate Liaison Actions, Track Successes, and Iterate the Strategy.
- Successful implementation requires a balance between centralized governance and individual developer autonomy, using 'guardrails' rather than rigid restrictions.
- Key activities for scaling the strategy include the '5E Cycle': Evangelize, Enable, Educate, Encourage, and Embed citizen development within the organization's culture.
- Recommendations include automating governance tasks, promoting business-led development initiatives, and encouraging the use of these tools by IT professionals to foster a collaborative relationship between business and IT units.
Citizen Development, Low-Code, No-Code, Digital Transformation, IT Strategy, Governance Framework, Upskilling
The Promise and Perils of Low-Code AI Platforms

The Promise and Perils of Low-Code AI Platforms

Maria Kandaurova, Daniel A. Skog, Petra M. Bosch-Sijtsema
This study investigates the adoption of a low-code conversational Artificial Intelligence (AI) platform within four multinational corporations. Through a case study approach, the research identifies significant challenges that arise from fundamental, yet incorrect, assumptions about low-code technologies. The paper offers recommendations for companies to better navigate the implementation process and unlock the full potential of these platforms.

Problem As businesses increasingly turn to AI for process automation, they often encounter significant hurdles during adoption. Low-code AI platforms are marketed as a solution to simplify this process, but there is limited research on their real-world application. This study addresses the gap by showing how companies' false assumptions about the ease of use, adaptability, and integration of these platforms can limit their effectiveness and return on investment.

Outcome - The usability of low-code AI platforms is often overestimated; non-technical employees typically face a much steeper learning curve than anticipated and still require a foundational level of coding and AI knowledge.
- Adapting low-code AI applications to specific, complex business contexts is challenging and time-consuming, contrary to the assumption of easy tailoring. It often requires significant investment in standardizing existing business processes first.
- Integrating low-code platforms with existing legacy systems and databases is not a simple 'plug-and-play' process. Companies face significant challenges due to incompatible data formats, varied interfaces, and a lack of a comprehensive data strategy.
- Successful implementation requires cross-functional collaboration between IT and business teams, thorough platform testing before procurement, and a strategic approach to reengineering business processes to align with AI capabilities.
Low-Code AI Platforms, Artificial Intelligence, Conversational AI, Implementation Challenges, Digital Transformation, Business Process Automation, Case Study
How GuideCom Used the Cognigy.AI Low-Code Platform to Develop an AI-Based Smart Assistant

How GuideCom Used the Cognigy.AI Low-Code Platform to Develop an AI-Based Smart Assistant

Imke Grashoff, Jan Recker
This case study investigates how GuideCom, a medium-sized German software provider, utilized the Cognigy.AI low-code platform to create an AI-based smart assistant. The research follows the company's entire development process to identify the key ways in which low-code platforms enable and constrain AI development. The study illustrates the strategic trade-offs companies face when adopting this approach.

Problem Small and medium-sized enterprises (SMEs) often lack the extensive resources and specialized expertise required for in-house AI development, while off-the-shelf solutions can be too rigid. Low-code platforms are presented as a solution to democratize AI, but there is a lack of understanding regarding their real-world impact. This study addresses the gap by examining the practical enablers and constraints that firms encounter when using these platforms for AI product development.

Outcome - Low-code platforms enable AI development by reducing complexity through visual interfaces, facilitating cross-functional collaboration between IT and business experts, and preserving resources.
- Key constraints of using low-code AI platforms include challenges with architectural integration into existing systems, ensuring the product is expandable for different clients and use cases, and managing security and data privacy concerns.
- Contrary to the 'no-code' implication, existing software development skills are still critical for customizing solutions, re-engineering code, and overcoming platform limitations, especially during testing and implementation.
- Establishing a strong knowledge network with the platform provider (for technical support) and innovation partners like clients (for domain expertise and data) is a crucial factor for success.
- The decision to use a low-code platform is a strategic trade-off; it significantly lowers the barrier to entry for AI innovation but requires careful management of platform dependencies and inherent constraints.
low-code development, AI development, smart assistant, conversational AI, case study, digital transformation, SME
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