If you feel like you’ve been hearing a lot about digital transformation and Value Stream Management in recent months, it’s for good reason: New research reveals 96% of organizations have started adopting digital transformation initiatives.
When asked how they’ll enhance their transformation effectiveness, “improving product lifecycles,” a core value proposition of Value Stream Management, was the top-rated response.
In this article, I’ll provide a look at the findings from this research and outline what Value Stream Management means for organizations pursuing digital transformation today.
Entering 2022, Teams Confront Major Visibility and Silo Issues
A large percentage of respondents, 92%, indicated they currently have significant product development obstacles. When it comes to top product development challenges for 2022, “lack of visibility throughout the product lifecycle” and “inefficient processes” were the two top-rated responses.
A significant percentage of respondents indicated that they’re contending with an age-old problem: silos. For many, these challenges have grown more pronounced in recent months.
Here’s how one CIO of a manufacturer put it: “Product challenges evolve as our processes change and are somewhat a function of more people working from home, which creates silos and inefficiencies.”
The research shows Value Stream Management (VSM) is emerging as a clear solution for addressing these hurdles.
Momentum Behind VSM is Significant and will Grow in 2022
As referenced above, nearly all organizations have adopted digital transformation initiatives, which is no surprise. How do teams boost their transformation efficacy? When asked this question, “establishing seamless workflows in the product lifecycle” was the top answer.
Further, virtually all respondents agreed that VSM offers optimized processes for the product lifecycle.
Given the urgent need to resolve key business and product issues, 42% of respondents have started to utilize value chains as part of their digital transformation. In addition, a significant percentage of respondents indicated they currently have several value streams in place. Of companies not doing VSM today, 72% are planning on it, and 50% will likely start their VSM projects in 2022. Only 14% say their company isn’t planning a VSM initiative.
There’s Widespread Consensus on VSM’s Benefits
Teams predict they’ll be getting a lot out of their VSM initiatives; 99% stated there are multiple benefits from adopting VSM. One of the top anticipated benefits is improved data-driven decision-making.
A CIO of a financial institution highlighted the importance of customer-focused metrics in informing optimization: “Value streams provide measurable metrics for customer satisfaction. There is no way to optimize processes without a customer point of view.”
Conclusion: VSM is Key to Innovation in 2022
Given the integral role VSM plays in enabling digital transformation, this new research reveals VSM is a key imperative for the vast majority of enterprises in 2022.
This research is now available in a report entitled, “Value Streams are Accelerating Digital Transformation.” Conducted by Dimensional Research and sponsored by Broadcom, the report offers several compelling insights that business and IT leaders can draw from as they chart their organization’s path for 2022. For more information, be sure to read the complete report.
2022 Value Stream Management Summit
View On-demand sessions on how to level up your VSM efforts, told by peers at Honda, Unum, Verizon and other experts. Watch now!
Author: Marla Schimke, Head of Product Marketing at Broadcom Software