If you feel like you’ve heard a lot about digital transformation and value management in recent months, it’s for good reason: new search It reveals that 96% of organizations have started adopting digital transformation initiatives.
When asked how to enhance their transformative effectiveness, “improving product life cycles,” the core value proposition of value flow management, was the highest rated response.
In this article, I will look at the findings of this research and explain what value-flow management means for organizations seeking digital transformation today.
A large percentage of respondents, 92%, indicated that they currently have significant hurdles in product development. When it comes to the top product development challenges of 2022, “lack of visibility throughout the product lifecycle” and “ineffective processes” were the top-rated responses.
A large percentage of respondents indicated that they face an old problem: silos. For many, these challenges have become more evident in recent months.
Here’s how one CIO of a manufacturer said: “Product challenges are evolving as our operations change and to some extent a job for more people working from home, leading to silos and inefficiencies.”
The research shows that Value Stream Management (VSM) is emerging as an obvious solution to address these obstacles.
As mentioned above, almost all organizations have adopted digital transformation initiatives, which is not surprising. How do teams enhance their transformative effectiveness? When asked this question, “Create a seamless product lifecycle workflow” was the best answer.
Furthermore, nearly all respondents agreed that VSM offers optimized product lifecycle processes.
Due to the urgent need to solve key business and product issues, 42% of respondents have started using value chains as part of their digital transformation. In addition, a large percentage of respondents indicated that they currently have several value streams in place. Of the companies not doing VSM today, 72% are planning, and 50% are likely to start their VSM projects in 2022. Only 14% say their company is not planning a VSM initiative.
Teams expect that they will receive a lot of their VSM initiatives; 99% stated that there are multiple benefits to adopting a VSM. One of the most important expected benefits is improved data-driven decision making.
The CIO of a financial institution highlighted the importance of customer-focused metrics in informing improvement: “Value streams provide measurable measures of customer satisfaction. There is no way to improve operations without a customer’s perspective.”
Given the essential role that VSM plays in enabling digital transformation, this new research reveals that VSM is a must for the vast majority of businesses in 2022.
This research is now available in a report titled, “Value Stream is Accelerating Digital Transformation.” The report, conducted by Dimensional Research and sponsored by Broadcom, offers several compelling insights that business and IT leaders can draw on as they chart their organization’s course for 2022. For more information, be sure to read full report.