Product-Aligned Operating Models Key to Innovation and Customer Value: HCLTech Report
LONDON and NOIDA, India, June 9th, 2025: 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 organizations.
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 organizations need a cultural and mindset shift to realize the full value of PAOMs. Leadership buy-in and alignment remain top barriers.
- Customer feedback is the untapped goldmine: Only 17% of organizations use customer feedback to its full potential, despite 94% acknowledging its importance in product development.
- Collaboration fuels innovation: While a third of organizations 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 maximize their ROI on their AI spend compared to traditional organizations.
“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.”
