For many of today’s global enterprises, it’s a struggle to adapt quickly to emerging challenges.
With supply chain issues and the impending recession, digital transformation remains a pressing strategic imperative. However, key digital transformation milestones remain out of reach for far too many teams. To make real strides in each of these areas, Value Stream Management (VSM) has emerged as an urgent demand.
Earlier this year, Broadcom commissioned extensive industry research to learn how VSM adoption is evolving and which key trends are emerging in 2023. Conducted by Dimensional Research, this survey polled more than 500 IT and business leaders. Respondents came from five continents and represented a wide range of industries.
The findings from this survey are now available in a report entitled “2023 Value Stream Management Trends.” We’ll offer critical insights from this report in the following sections.
When asked about their top strategic business focus for 2023, 58% of respondents cited “increasing customer value,” the highest-rated response. This objective was ranked third in a similar survey conducted the previous year.
The report’s authors state, “It now seems companies are shifting focus from rushing products to market that risk decreasing customer value with defects, bugs, or quality problems to a clear focus on maximizing customer delight with value and quality.”
As they look at their challenges heading into 2023, senior leaders can be forgiven for having a sense of déjà vu. More than two-thirds (68%) of respondents say their businesses continued to be plagued by a long-standing issue: the disconnect between software development and business strategy. An even higher percentage of technology teams, 72%, are frustrated by business leaders’ constant changing of business priorities.
Since the advent of the pandemic, supply chains have presented challenges for businesses in a range of industries—and supply chains remain the highest-ranked challenge as teams enter 2023. Forty-nine percent of respondents said ensuring their company has reliable supply chains is a top challenge.
Today, the consensus around VSM is nearly unanimous: 92% agree that VSM can help optimize the product lifecycle. Further, 86% have adopted VSM or plan to. By the end of 2023, 60% of organizations will be shipping products using VSM.
The survey also revealed that digital transformation initiatives are tightly aligned with VSM. Ninety-five percent of organizations currently pursuing VSM initiatives are also pursuing digital transformation.
For teams that have implemented VSM, a vast majority of respondents, 95%, report that VSM has helped deliver key benefits. When asked what benefits VSM has already shown, six responses were selected by one-third or more survey participants. Topping the list were increased transparency (42%), improved organizational alignment (39%), faster delivery of solutions to customers (38%), and enhanced data-driven decision-making (37%)—which can all be integral to advancing digital transformation.
The research shows that those building VSM capabilities are seeing an improved ability to measure and track customer value, which, as outlined earlier, is the top strategic imperative for leaders.
This recent survey offers some compelling proof points of the power of VSM. As we head into 2023, the businesses that have established VSM practices are better positioned to achieve their digital transformation objectives and deliver more value to customers. To learn more, download the report “2023 Value Stream Management Trends.”
______________________________________________________________
Explore ValueOps Value Stream Management, built to manage what you value most.
