What is
Value Stream Management?

At its most fundamental, Value Stream Management is the practice of optimizing the delivery of products and services to customers. This approach encompasses principles, processes, and tools, which are employed to effectively fund, define, align, measure, and optimize value streams.

Organizations need to extend value streams across the enterprise, beyond their traditional home in IT, DevOps and agile management, encompassing the entire value lifecycle from concept to cash, and uniting the enterprise. Powered by Digital Product Management and Enterprise Agility, Value Stream Management enables organizations to be optimally poised for success—today and in the long term.

Contact a VSM Expert

Watch Our VSM Video

Value Stream Management Accelerates Digital Transformation and Innovation

New research finds a growing correlation between the use of Value Stream Management (VSM) and improved digital transformation initiatives. Nearly all (99%) of respondents stated Value Stream Management provides key benefits such as:

Faster delivery of products
Improved transparency leading to data-driven decisions
Reduction of silos for improved customer value and ROI
Improved efficiencies of teams

Research was sponsored by Broadcom and conducted by Dimensional Research with more than 500 executives, business and IT leaders across global enterprises.

0% 88% of organizations currently using Value Stream Management methodologies today, and nearly 75% of the remaining companies plan to do so in 2022.

0% 95% of business and IT leaders state the adoption of Value Stream Management has optimized their product lifecycle processes.

0% 92% cite product challenges such as poor product lifecycle visibility and inefficiencies will continue in 2022. Most agree this can be solved with a VSM technology.

Breakthrough Benefits of
Value Stream Management

By establishing a comprehensive, enterprise-wide approach to Value Stream Management, organizations can boost alignment, maximize efficiency, and enhance effectiveness.

Boost Alignment Through Value Stream Management, teams can establish the shared insights that foster trust and eliminate silos. In this way, teams can ensure business decisions and development are fully aligned with value realization.

Maximize Efficiency By establishing enhanced visibility, organizations can reduce inefficiency and waste in their value streams. This ensures they’re building the right products at the right time, improving speed and quality.

Enhance Effectiveness With VSM, organizations maximize the impact of their digital transformation initiatives. They can start funding the most valuable efforts, and definitively track the return those investments actually deliver.

How Enterprises Across Industries are Profiting

By leveraging enterprise-wide Value Stream Management technologies and approaches, many leading enterprises are starting to realize breakthrough benefits. Following are a few examples of how companies thrive with Value Stream Management.

Multi-National Snack Food Producer Boosts Business Agility

A consumer-packaged goods manufacturer recently encountered a range of significant market disruptions, including dramatic changes in consumer behavior and significant supply chain disruptions. This meant teams across the organization had to pivot fast.

Value Stream Management proved instrumental in facilitating the rapid adaptation the organization required. Through Value Stream Management, their teams were able to gain end-to-end visibility of their digital ecosystem. They established up-front road maps, and then seamlessly broke top-level initiatives into agile management-based work, which helped boost efficiency and decision making.

Aeronautics Manufacturer Adapts to New Budgetary Realities

Recently, the aeronautics industry took a major hit, with air travel essentially grinding to a halt within a matter of weeks. For a large aeronautics manufacturer, this downturn resulted in a significant and unexpected drop in revenues. This created significant urgency for identifying ways to reduce expenses.

The internal services team leveraged Value Stream Management to gain a cross-team view, so they could intelligently identify and eliminate waste. By getting rid of the cost and overhead of overlapping toolsets, the team was able to realize savings of approximately $25M.

National Fast-Casual Restaurant Boosts Collaboration, Speed

Customer reliance on online ordering and third-party delivery has grown to unprecedented levels. For a team at a national fast-casual restaurant, this meant plans for signing on new third-party delivery partners had to be accelerated.

Through Value Stream Management, they were able to establish more effective knowledge sharing and collaboration across different departments, including product teams, digital marketing groups, scrum masters, and planners. Through this cross-team collaboration, they were able to bring on several new delivery partners—while shrinking roll out times from months to weeks. As a result, they were able to quickly deliver more convenience and flexibility to their customers—which was essential to maximizing customer loyalty and retention.

DPM and Enterprise Agility: Supporting Successful VSM Initiatives

Digital Product Management To thrive in a new digital world, new approaches are required. Digital Product Management (DPM) represents a set of practices for adapting technology management to today’s digital realities. As part of Value Stream Management, DPM helps teams ensure they’re funding their most valuable initiatives and demonstrating maximum ROI. Learn More

Enterprise Agility Enterprise Agility represents the processes and tools for establishing complete traceability across the execution lifecycle, from initial investments through to delivery. As a result, leaders can create realistic plans to optimize management of capacity, work-in-progress, and dependencies and risks. Plus, they can track efforts throughout the value stream with real-time information and insights—so they can ensure execution stays optimized. Learn More

Explore VSM Resources

Infographic ValueOps Infographic

ValueOps enables your organization to plan, align, monitor, track, deliver, and optimize work consistently by its most ...

Report Bring “Value” To Your Value Stream Management

To remain competitive and accelerate innovation, companies must integrate Value Stream Management to align business and ...

Video Value Stream Management Virtual Summit

On-demand tutorials from the Value Stream Management Summit told by your peers at Boeing, Chipotle, The Hershey Company ...

What is Value Stream Management?