From projects to products: Modernizing software development in a traditional industry company – A case study

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Journal ISSN

Volume Title

School of Science | Master's thesis

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Date

2025-11-24

Department

Major/Subject

Software and Service Engineering

Mcode

Degree programme

Master's Programme in Computer, Communication and Information Sciences
Master's Programme in Computer, Communication and Information Sciences
Master's Programme in Computer, Communication and Information Sciences

Language

en

Pages

114

Series

Abstract

In recent years, many traditional industry companies have recognised the strategic importance of software solutions as key drivers of revenue, customer experience, and competitive advantage, alongside their core non-digital businesses. These organisations want to operate like leading technology companies by delivering continuously, innovating rapidly, and leveraging data for decision-making. However, most still rely on project-based models that limit flexibility, learning, and long-term value creation. As a result, many are seeking to adopt product thinking. Yet, the transition remains challenging, as it requires structural, cultural, and operational changes within organisations originally built around project-oriented practices. This case study analyses the software development operations of the Digital Technology unit at Company X, a large energy company, and evaluates how its existing practices align with project- and product-oriented principles. The study identifies key pain points and proposes improvements to enable a shift toward product thinking. The analysis is based on multiple semi-structured interviews, discussions, document analysis, observations, and daily interactions with business and technical stakeholders. The findings are cross-referenced with literature to assess how Company X’s practices correspond to the project- and product-based models. The main contribution of this study is a proposed operating model for software development and improvements to prioritisation and budgeting processes, which offer a hybrid approach to applying product thinking in a traditional organisation. The model considers practical constraints such as limited in-house competence, centralized funding, and outsourced development, and provides a realistic framework that supports gradual transition. It aims to improve collaboration, innovation, and value delivery by clarifying roles and responsibilities, establishing mechanisms for continuous collaboration between product teams and business stakeholders, and visualising interaction points throughout the whole product lifecycle. This thesis contributes to the scientific field by addressing the lack of studies on applying product thinking in traditional, project-oriented organisations. It expands the growing body of knowledge by providing practical insights and a framework for guiding similar transitions in legacy industry contexts.

Description

Supervisor

Lassenius, Casper

Thesis advisor

Matvyeyeva, Tania

Keywords

software development, organisational changes, value creation, product operating model, project management, product thinking

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202512179403

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[dipl] Perustieteiden korkeakoulu / SCI