This paper will analyze organizational challenges in connection with the implementation of product models. Product models are implemented with the purpose of industrializing the engineering work associated with the product configuration process. The paper demonstrates that the introduction of a product model will create a number of organizational challenges. The paper identifies four key challenges. Firstly, a redesign of the product configuration process whereby this process is split in two -one process for standardized product variants which is supported by the product model and one process for highly customized product variants. Secondly, the introduction of the product model creates a need for the introduction of new organizational roles in the organization. Among the most important roles is the model manager. Thirdly, alongside the introduction of new organizational roles a new task structure also needs to be introduced. Fourthly, it is also a challenge is to ensure continual learning and development of the product model. Throughout the paper findings from cases will be used to illustrate how a number of companies have dealt with the identified challenges. The paper concludes by outlining a number of recommendations for a firm attempting to implement a product model successfully.