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Why the Digital Product Model Beats Project-Based Approaches
By Ryan Nelson and Thomas H. Davenport | Harvard Business Review Magazine | March–April 2026
2 key takeaways from the article
- In the IT field, project management has long been the foundational operating model. There are several big problems with this model, however. First of all, only 31% of global IT projects are successful. Beyond that, IT projects have a number of drawbacks: They’re usually defined as efforts to build a system rather than to achieve a business outcome. Their focus is on pleasing internal stakeholders, and their customer or intended user is often ambiguous and engaged with only when necessary. Assuming the system is launched successfully, the project ends, the team that built it is redeployed, and there is little effort to learn how the new solution is being used or needs to evolve over time—much less any ongoing sense of ownership or investment.
- In response to those problems, a growing number of companies have adopted a product rather than a project approach to creating digital offerings. The approach optimized for measurable business impact—such as an increase in revenue—across a longer horizon. They establish teams that continue to manage new applications after they go live. The focus isn’t simply on getting new products out there; it’s on delivering ongoing value to customers.
- Five essential steps for transitioning from IT projects to digital product management: Start with small wins. Create a product vision. Form long-term, cross-functional product teams. Establish permanent team leaders, infrastructure, and performance metrics. And treat the shift as a journey.
(Copyright lies with the publisher)
Topics: Project Management, IT Product Management
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