Value stream management (VSM) is gaining traction as companies look for ways to more efficiently engage customers through digital business transformation initiatives.
A survey of 500 executive, IT and business leaders conducted by Dimensional Research on behalf of Broadcom, released this week, found that 39% of respondents implemented a VSM platform and another 16% had comparable skills. Another 31% said their organizations are moving towards adopting a VSM platform. A total of 60% of respondents said they will use VSM to deliver products in 2023, with 95% of companies that have adopted VSM also involved in digital transformation.
Broadcom’s chief transformation officer, Laureen Knudsen, said the main goal is to close the gap that has developed over the years between software development teams and the rest of the company. More than two-thirds of respondents (68%) said there are gaps between business and software development.
Overall, the Broadcom survey identified increasing customer value (58%), improving product quality (55%), reducing costs (51%), attracting new customers (50%), increasing profits (49%) and faster time to market (45%). ) as the top strategic issues companies will face in 2023.
The top benefits of investing in VSM were increased visibility (42%), improved organizational alignment (39%), faster resolutions for customers (38%), data-driven decision making (37%), and improved access to data (36%).
VSM goes back to lean manufacturing methods, where every step of a manufacturing process had to be continuously measured. As software development has evolved and companies realize how dependent they are on software, there is a growing appreciation for monitoring things like the impact of missed software development deadlines on the business. At its core, VSM platforms aggregate DevOps metrics and then compare them to a set of Key Performance Indicators (KPIs) defined by executives. Once these metrics are collected and correlated, organizations can apply advanced analytics. The goal is to apply algorithms and other forms of predictive analytics that allow companies to more easily see the precise impact of software development processes on the business.
According to Knudsen, the survey makes it clear that a lack of discipline in software engineering needs to be addressed now that companies realize how dependent they are on applications to win customers. For example, many organizations have adopted flawed approaches to agile development that end up causing havoc throughout the software development lifecycle, she noted.
For example, many companies aren’t sure how much time development teams spend paying off the technical debt accumulated on legacy applications versus actually working on developing new applications, Knudsen added.
Business conditions tend to change quickly, making it difficult to align software development with business goals. Nearly three-quarters (72%) of respondents said they are frustrated with the state of the business and constant changes in strategy. But digital business transformation initiatives require organizations to take a more structured approach to software engineering, Knudsen said.
The problem, of course, is the pace at which companies are already undergoing digital transformation. The accelerated pace requires an almost immediate re-engineering of software development processes to be successful.