Skip to main content

Why Value Stream Management Matters to Your Enterprise

Experience Digital Transformation with Value Stream Management (VSM)

Digital transformation is here. If your business is one of the eight in 10 facing these challenges, it’s time for a better solution:

  • cross-mark Lack of actionable data
  • cross-mark Inefficient processes
  • cross-mark Siloed departments
  • cross-mark Frustrated technology teams

There’s a reason 86% of businesses are turning to Value Stream Management to mitigate the risks of their transformation. The statistics are undeniable: VSM is the way to set your digital transformation up for success.

Advantages of Value Stream Management

While Value Stream Management has a long list of benefits, many business owners pinpoint these three main advantages:

Advantage 1: Increase Visibility

Getting accurate, real-time data and insights from across the business removes organizational silos. In turn, you improve decision-making and increase trust.

Advantage 2: Create Alignment

Surveys show that 70% of technology teams are frustrated by constant pivoting. VSM helps reduce friction and foster collaboration by aligning business and delivery to ensure both are organized around the same strategic objectives.

Advantage 3: Optimize Efficiency

Capacity planning and resource management eliminate waste, increase productivity and speed to market, and drive continuous value delivery.




VSM Use Cases and Business Challenges

Businesses generally face three main challenges in digital transformation: visibility, alignment, and efficiency. Over 80% of executives believe these are critical factors for driving value. Fortunately, Value Stream Management provides multiple ways to solve visibility, alignment, and efficiency challenges. Some of the most common use cases include:

  • tick-mark Enhance decision-making: gain access to accurate, real-time data
  • tick-mark Improve trust: remove silos and create a single source of truth
  • tick-mark Minimize risk: get quick, accurate performance and impact measurements
  • tick-mark Align planning: utilize intent and delivery outcomes to address
  • tick-mark Reduce friction: streamline movement from value definition to realization
  • tick-mark Foster collaboration: help teams plan and work together
  • tick-mark Eliminate waste: prioritize work by optimizing resource management
  • tick-mark Improve speed to market: help the entire enterprise accelerate
  • tick-mark Drive continuous improvement: accelerate across multiple cycles by fostering a shared understanding

Value Stream Management solves problems for organizations that want to create a culture of alignment and true success.

View Videos In The VSM 101 Video Series

  • What are Value Streams?
  • What is Value Stream Management?
  • What is Value Stream Mapping?
  • What is Customer Value?
  • What are the Activities of a Value Chain?
  • How Can Data Help Improve Customer Service and Customer Value?
  • How Can Product Management Leverage Market Rhythms?
  • What is the Best Portfolio Management Software?
  • What is Continuous Improvement?
  • What is an Agile Release Train?
  • What is an OKR?
  • What is the Benefit of using OKRs with Agile Teams?
  • What is the benefit of using OKRs with VSM?

Benefits and Importance of Value Stream Management

Value Stream Management (VSM) is essential as it provides a structured approach to identifying and eliminating waste in business processes, enhancing overall efficiency. It focuses on improving the flow of value through various stages of production and service delivery, ensuring that every step adds value to the customer. By implementing VSM, organizations can significantly shorten cycle times, increase product quality, and enhance customer satisfaction.

How Value Stream Management Improves Business Operations

VSM transforms approaches by zeroing in on inefficient areas in your processes. It's all about spotting those time-sucks in your workflow and getting rid of them, which makes everything run smoother and faster. VSM helps companies look at how work flows from start to finish and ensures every step is worth it for the customer. Implementing it means your cycle times drop and your products get better, which customers really notice. Plus, it's not just about short-term gains; it builds a mindset across your company that's all about making things better bit by bit.

Value Stream Management (VSM) effectively resolves several business challenges, including:

  • Quickly responding to market changes to outpace competitors.
  • Streamlining operations to overcome resource limitations due to cost reductions.
  • Managing resource constraints due to budget reductions.
  • Refining organizational structures to better focus on value creation.
  • Mitigating customer dissatisfaction by enhancing product quality and responsiveness.
  • Speeding up the release of updates and new features.
  • Reducing customer frustration with existing services and products.
  • Improving visibility across departments hindered by silos and fragmented data.
  • Gaining market share by adapting faster to changes.
  • Enhancing the results of Agile and digital transformations.

Frequently Asked Questions

What is Value Stream Management, and Why is it Important for Businesses?

Value Stream Management is a technology-enabled business practice that focuses on delivering customer value by planning for and managing it throughout the complete project life cycle. It helps businesses achieve successful digital transformation.

How Do You Implement Value Stream Management?

Implementing Value Stream Management requires establishing clear goals, collecting and analyzing data, identifying specific areas to improve, and integrating new processes.

What Tools and Software Can Assist in Value Stream Management?

ValueOps by Broadcom is the most effective cloud-based solution to help businesses foster collaboration, align business and delivery, accelerate the software delivery process, and increase efficiency across the board.

Are There Specific Case Studies or Examples of Organizations That Have Benefited From Value Stream Management?

Yes. Global aerospace giant Boeing used Value Stream Management to eliminate wasted effort and reduce its technology budget by 30%, saving hundreds of millions of dollars in two years. Fast-casual restaurant chain Chipotle boosted its development productivity by 25%.

What are the Principles of Value Stream Management?

Value Stream Management aims to increase the value being delivered to customers, boost product quality, and optimize for better business results.

Get in Touch

Have a question? Our team is ready to help. Contact one of our VSM experts to discuss your current challenges and discover how you can create visibility, alignment, and efficiency across your organization.