HCLTech study underscores the criticality of product-aligned operating models to drive innovation, efficiency and customer value

In a world where digital transformation is no longer optional, HCLTech’s latest research titled The Blueprint to AI-led Operating Model: Mastering the Art of Engineering Value at Velocity, has revealed how Product-Aligned Operating Models (PAOMs) are becoming the blueprint for future-ready organisations.

The report has revealed that 9 in 10 firms with a traditional operating model fail to drive meaningful returns from their investments. In an AI-driven market defined by constant disruption, a product aligned

operating model (POAM) is emerging as the key differentiator. The research surveyed 550 senior IT and business decision-makers across the US, Europe and Asia- Pacific.

Key findings:

• 88% of enterprises are moving towards a PAOMs, with another 12% expecting to implement it within the next 3 years. Yet, 100% report facing implementation challenges.

• Generative AI (GenAI) is a game-changer: Nearly half (47%) believe GenAI will enhance product lifecycle management and decision-making, with APAC leading in adoption.

• Leadership and culture are critical: 95% of respondents say their organisations need a cultural and mindset shift to realise the full value of PAOMs. Leadership buy-in and alignment remain top barriers.

• Customer feedback is the untapped goldmine: Only 17% of organisations use customer feedback to its full potential, despite 94% acknowledging its importance in product development.

• Collaboration fuels innovation: While a third of organisations actively engage in cross functional collaboration, yet 99.6% still see room for improvement.

• AI investment pays off: One in two firms with a product-aligned operating model invests in AI and is four times more likely to maximise their ROI on their AI spend compared to traditional organisations.

“A product-aligned operating model brings teams together around a shared vision, promoting cross functional collaboration and enhancing operational efficiency. This approach enables enterprises to innovate effectively and increase their chances of achieving customer-focused outcomes,” said Ashish Kumar Gupta, Chief Growth Officer, Europe and Africa, Diversified Industries, HCLTech.

“As disruption becomes the norm, product-aligned operating model isn’t just an option—it’s a necessity,” said Pawan Vadapalli, Corporate Vice President and Global Head, Digital Business Services, HCLTech. “HCLTech Fenix and AI Force offer a clear path to navigate complexities, blending strategy, technology and agility to turn disruption into innovation and deliver impactful results.”