Challenges in transitioning to a Product based Organization

How project based organizations function?
How product based organizations function?
What the journey to transition to a product based organization?
What the mistakes we make?
What happens if there is not execution culture?

Project based organization work very closely with business leaders, where a business need is transformed into a project with a budget. Typically, the conversation starts as, we want to do the following to manage our business. The IT leaders then say, it will take x amount of dollars (translated into people and time). IT works closely with business, either builds a new application or a enhances an existing application and delivers the project. Ideally, there are business analyst is collecting detailed requirements, which can then be executed either in a waterfall fashion, or agile fashion. it's a little bit challenging to convert requirements into user stories, but once the team gets adjusted on how to translate, the reqs to user stories, and regular cadence of delivery, projects will get delivered. The Engineering Managers are typically fighting for good projects, because thats the way to keep the engineers motivated on a project