The Blueprint to AI-led Operating Model

Are you truly built to keep up with the pace of GenAI-driven disruptions?

Generative AI is reshaping industries at lightning speed. The pace of disruption has never been faster. But here's the burning question for global firms: Are you equipped to thrive in this new reality, or are you clinging to outdated systems that will leave you behind?

Our global research of 550 business and IT decision-makers across the Americas, Europe and Asia-Pacific reveals a stark truth-many organizations are still grappling with inefficiencies, misaligned goals and underutilized technology.

Overview

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CXOs are in the know — they understand that GenAI boosts both effectiveness and efficiency, with only a 4 pp* difference in focus. Yet, there's a stark contrast when we look at mid-level managers — a whopping 17 pp* gap!

This indicates a potential oversight in harnessing Al's capabilities for enhanced decision-making and process optimization.

Without a unified operating model that ensures cross-level alignment, organizations risk watching millions in GenAI investments deliver pennies on the dollar.

Fix the disconnect

Cross-level views of GenAl's potential

43
39
35
26
4 pp*
17 pp*
CXOs
Mid-level managers

Percentage points

  • Enhancing decision-making effectiveness
  • Boosting engineering efficiency

The missing piece to uncover your blind spot

In response to mounting pressures to innovate faster and deliver value more efficiently, companies are increasingly turning to product-aligned operating models to adopt a disciplined approach toward streamlining operations around the core value of products and services.

88

of surveyed businesses are moving towards a product- aligned operating model to foster stronger collaboration, productivity and innovation

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The other

12

are racing to implement it within the next 3 years-leaving late adopters at risk of falling behind

The disciplined approach to value creation

Success Pillars bg-1

Demolishing
silos

Promoting collaboration between cross-functional teams to empower individuals at all levels to make informed decisions and drive innovation

Read more Demolishing silos 

Success Pillars bg-2

Tracking what
matters

Centering success metrics around customer value to ensure products are tailored to meet evolving needs, driving measurable business impact.

Read more Tracking what matters 

Success Pillars bg-3

Building
supportive systems

Leveraging modern technologies to streamline operations and align efforts around a singular goal.

Read more Building supportive systems 

The disciplined approach to value creation

action point

Demolishing silos

Promoting collaboration between cross-functional teams to empower individuals at all levels to make informed decisions and drive innovation

Read more

Demolishing silos

Promoting collaboration between cross-functional teams to empower individuals at all levels to make informed decisions and drive innovation

Demolishing silos

Experimentation without returns haunts large firms

Large organizations are caught in a dangerous cycle of experimentation without accountability. While 56% pour millions into experimentation and cultural transformation to drive collaboration, 66% struggle to link this spending to actual value delivery. In stark contrast, small organizations—with their lean structures forcing financial discipline—are 1.4x more likely to align funding with value outcomes.

Aligning organizational funding with potential value delivery

34
Large firms
Large firms

1.4x

more likely to link funding to value outcomes

47
Small and mid-sized firms
Small and mid-sized firms
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Firms focusing on improving trust between teams to enhance collaboration

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Body
Circle
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Circle
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Financial Services

44
38
12
Bar 1 Bar 2 Bar 3

Industry average

32
56
Bar 1 Bar 2

Financial Services bet big on trust

Financial firms prioritize trust-building between teams-outperforming the average sector by 38%. This focus transforms siloed innovation into coordinated action, proving that in financial services, trust isn't just a cultural metric-it's a strategic accelerator.

action point

Tracking what matters

Centering success metrics around customer value to ensure products are tailored to meet evolving needs, driving measurable business impact

Read more

Tracking what matters

Centering success metrics around customer value to ensure products are tailored to meet evolving needs, driving measurable business impact

Tracking what matters

Life Science and Healthcare firms puts customers before process

Life Science and Healthcare firms are rewriting the innovation playbook by putting customer satisfaction at the heart of product development—a striking 45% higher focus than in other industries. Product-aligned operations can act as a powerful catalyst, as firms leveraging it are nearly 2x more suited to adopt customer-involved approaches, such as feedback sessions and pilot programs, to drive innovation and build value.

Life Science and Healthcare

Manufacturing malfunction

Leadership understands the importance of measuring the flow of value

28
72
Bar 1 Bar 2

0%

20%

40%

60%

80%

100%

Has the culture to track and assess engineering value

48
52
Bar 1 Bar 2
0% 20% 40% 60% 80% 100%
Strongly agree Doesn't or somewhat agree

1 in 2 manufacturers hit a wall when executing value measurement

A troubling leadership disconnect plaques manufacturing. Fewer than 1 in 3 middle managers applaud their leadership's commitment to measuring value-plummeting nearly 25% below other industries. The ripple effects are severe, with more than half of their organizations stumbling through the operational muscle needed to continuously execute value measurement.

action point

Building supportive systems

Leveraging modern technologies to streamline operations and align efforts around a singular goal

Read more

Building supportive systems

Leveraging modern technologies to streamline operations and align efforts around a singular goal

Building supportive systems

Telecom's cloud rush to trigger 122% surge in integration needs

Driven by the pursuit of cost savings and enhanced performance, telecom firms are set to nearly double their investment in cloud migration, rising from 33% to 58% by 2027. To bridge modern cloud applications with legacy infrastructure, system integration investments are expected to soar by 122%, with 60% of telecoms making the leap in just three years.

Telecom's cloud rush

Maximizing ROI on AI investments

51%

with a product-aligned operating model are investing in AI

45%

are driving ROI

37%

without a product-aligned operating model are investing in AI

11%

are driving ROI

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Product model makes AI investments count

The AI investment gap is turning into a competitive chasm. While 51% of product-aligned organizations are aggressively betting on AI, traditional firms are falling dangerously behind. Product-aligned organizations aren't just investing more-they are also 4x more likely to maximize their ROI from every AI dollar spent than traditional organizations.

In the AI age, product alignment isn't just an advantage-it's survival

Roadblocks that threaten to derail the progress

9 in 10

organizations lack the leadership muscle to drive cultural change-leaving their product initiatives built on quicksand

1/3

find themselves trapped in a legacy maze, struggling to integrate new systems with outdated infrastructure, driving up costs and killing innovation speed

22%

are navigating blind-with no reliable metrics to prove success or justify continued investment in their transformation

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The final verdict

In an AI-driven market defined by constant disruption, product-led models are emerging as the key differentiator. While adoption rates soar, success isn't guaranteed. Organizations that strategically combine the right partnerships with modern technology and stay disciplined in their execution aren't just transforming-they're creating sustainable competitive advantages.

In a landscape where customer centricity drives success, the disciplined approach of a product-aligned operating model has become the clear path to market leadership.