Strategic digital product management: Nine approaches

Context:

The role of product management (PM) is key for building, implementing and managing software-intensive systems. Whereas engineering is concerned with how to build systems, PM is concerned with ‘what’ to build and ‘why’ we should build the product. The role of PM is recognized as critical for the success of any product. However, few studies explore how the role of PM is changing due to recent trends that come with digitalization and digital transformation.

Objectives:

Although there is prominent research on PM, few studies explore how this role is changing due to the digital transformation of the software-intensive industry. In this paper, we study how trends such as DevOps and short feedback loops, data and artificial intelligence (AI), as well as the emergence of digital ecosystems, are changing current product management practices.

Methods:

This study employs a qualitative approach using multi-case study research as the method. For our research, we selected five case companies in the software-intensive systems domain. Through workshop sessions, frequent meetings and interviews, we explore how DevOps and short feedback loops, data and artificial intelligence (AI), and digital ecosystems challenge current PM practices.

Results:

Our study yielded an in-depth understanding of how digital transformation of the software-intensive systems industry is changing current PM practices. We present empirical results from workshops and from interviews in which case company representatives share their insights on how software, data and AI impact current PM practices. Based on these results, we present a framework organized along two dimensions, i.e. a certainty dimension and an approach dimension. The framework helps structure the approaches product managers can employ to select and prioritize development of new functionality.

Contributions:

The contribution of this paper is a framework for ‘Strategic Digital Product Management’ (SDPM). The framework outlines nine approaches that product managers can employ to maximize the return on investment (RoI) of R&D using new digital technologies.