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.
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:
Research was sponsored by Broadcom and conducted by Dimensional Research with more than 500 executives, business and IT leaders across global enterprises.
By establishing a comprehensive, enterprise-wide approach to Value Stream Management, organizations can boost alignment, maximize efficiency, and enhance effectiveness.
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.
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.
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.
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.
bizops.com is sponsored by Broadcom, a leading provider of solutions that empower teams to maximize the value of BizOps approaches.