In the shift to a product operating model in IT, where is the “product owner” role situated in this model? Does it sit in the IT organization or does it belong in the business functions?
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IT Manager in Energy and Utilities4 months ago
If the "product" is IaaS, PaaS in IT. if SaaS probably in Business, but it depends on organization and who own the budget for products.Director of IT in Travel and Hospitality4 months ago
My organisation has been through both models. I personally favour product owners sitting in IT. The rationale being not having Product within IT allows for role duplication - essentially Business Product Owners and IT product owners and similar junior role splits. Having the same reporting lines to a CTO or CIO mitigates that somewhat.SVP, Technical Services in Banking4 months ago
The product owner should be within the business function. The only reason an IT project is in place is because a business functional owner is willing to spend the $$ to make that project move forward. We are transforming our business and most of the product owners are from the business side. There are a couple of workstreams that require IT being the product owner, but the majority will be via the business function. This ensures there is buy-in from the business and that we stay in synch as an IT organization with the business.Director of IT in Government4 months ago
My view is that is should almost always sit within the business area unless the product or service is a shared IT function such as email, SharePoint, etc. which then IT would be the product owner. IT shouldn't be making business decisions or determine business risk levels that a product owner would make. IT should provide analysis and recommendations but the business / product owner should have the final say. VP - Digital & IT in Education4 months ago
Based on your organizational needs, determine where the product owner can be most valuable. In the transition to a product operating model in IT, the role of the "product owner" is essential for connecting the IT organization with business functions. The placement of the product owner may differ according to the organization's structure and strategy, but common scenarios include:Embedded in Business Functions:
Placing the product owner within business functions allows them to closely interact with customers and understand market demands. This alignment ensures a deep understanding of business objectives, customer needs, and market trends, leading to more effective and relevant product development.
Situated within the IT Organization:
Positioning the product owner within the IT organization facilitates better communication and collaboration with the development team. This setup ensures that technical constraints and capabilities are well-understood and considered in the product planning and prioritization process. It streamlines implementation, as the product owner can directly influence and guide the technical team to align product development with the technical roadmap and capabilities.
Hybrid Model:
A hybrid approach involves the product owner having a dual reporting line or a strong collaborative relationship with both IT and business functions. This model ensures that the product owner is well-versed in both business and technical aspects, leading to more cohesive and aligned product development.
Key Considerations:
Organizational Culture: Some organizations have a culture that supports stronger collaboration between IT and business units, making a hybrid or embedded approach more feasible.
Product Complexity: The complexity and nature of the product may dictate the optimal positioning of the product owner. Highly technical products may benefit from a product owner within the IT organization, while market-driven products may benefit from a business-aligned product owner.
Communication and Collaboration Tools: Effective tools and processes for communication and collaboration can mitigate the challenges of any chosen structure, ensuring that the product owner remains well-informed and aligned with both IT and business needs.
Ultimately, the goal is to position the product owner in a way that maximizes their ability to deliver value to customers while ensuring alignment with both business and technical objectives.