88% of firms moving to product-aligned operating models: HCLTech

As businesses face pressures from continuous digital disruption, a recent global study conducted by HCLTech shows that product-aligned operating models (PAOMs) are emerging as an essential pathway to innovate, drive efficiencies, and create customer value in the AI era. The report - The Blueprint to AI-led Operating Model: Mastering the Art of Engineering Value at Velocity - includes qualitative research with 550 senior IT and business decision-makers in the the US, Europe, and the Asia-Pacific. The report notes that for organizations relying on traditional operating models, it¹s difficult to generate value from their tech investments. These findings suggest companies utilizing PAOMs are four times more likely to generate returns on investments in AI.

“A product-aligned operating model brings teams together around a shared vision, promoting cross-functional collaboration and enhancing operational efficiency,” said Ashish Kumar Gupta, Chief Growth Officer, Europe and Africa, Diversified Industries, HCLTech.

Key Findings:

• 88% of surveyed enterprises are already shifting to PAOMs, and the remaining 12% plan to do so within the next three years.

• 100% of respondents face implementation challenges, particularly in leadership alignment and cultural transformation.

• 47% see generative AI as a pivotal force in enhancing product lifecycle management and decision-making, with APAC leading in adoption.

• Only 17% of enterprises are fully leveraging customer feedback, despite 94% recognising its importance in product development.

• Just one-third of firms currently engage in active cross-functional collaboration, though 99.6% agree it needs improvement.

• Firms using PAOMs and investing in AI are significantly more likely to generate high returns.

“As disruption becomes the norm, a 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 at HCLTech.

To support this transition, HCLTech points to its solutions—Fenix and AI Force—which aim to blend strategic agility with technological execution to help businesses navigate disruption and deliver value at scale.

The research spans a diverse range of industries, including manufacturing, BFSI, healthcare, and technology, with participating organizations reporting an average annual revenue of $5 billion.