New Report Affirms Value Stream Management is a Critical Strategy for Enterprise Digital Transformation

New Report Affirms Value Stream Management is a Critical Strategy for Enterprise Digital Transformation

SAN JOSE, Calif., January 28, 2025 – The latest research into Value Stream Management (VSM) reveals the customer lifecycle continues to be a leading priority for business leaders coming into 2025. Specifically, respondents cited delivering customer value and attracting new customers as two of their top three business objectives. The fourth annual survey, sponsored by Broadcom and conducted by Dimensional Research, covers a broad range of topics, including VSM adoption, digital transformation, measuring customer value, AI adoption, solutions being used to facilitate VSM, and the challenges organizations face in implementing it.

"Each year, this research underscores the growing need for VSM, and how it is helping organizations overcome their business challenges and reach their business goals," said Jean-Louis Vignaud, Head of ValueOps, Agile Operations Division, Broadcom. "It is great to see the benefits that leaders want to see from VSM – improved visibility and data collection and the ability to make data-driven decisions – are being realized, enabling organizations to increase customer value while aiding their digital transformation efforts."

VSM a catalyst for digital transformation

The survey found that every company that has begun digital transformation either uses VSM, or has plans to implement it. This is no coincidence. Year-over-year data showed VSM delivering increased value over time, with 39% of respondents stating that it improved data-driven decision making, along with faster delivery of solutions to customers. Similar to last year's survey, 38% noted that VSM aided their digital transformation initiatives.

The survey also revealed growing VSM maturity, with 30% stating their organizations would be utilizing multiple product lines and 11% reporting enterprise-wide use of VSM, up 2% and 4% respectively.

This maturity correlates with an increase in commercial VSM tools. When asked about tooling choices, an integrated set of solutions incorporating dedicated VSM tools was the top answer, cited by 44% of respondents, a marked shift from the prior year in which homegrown tools and Excel were the top two responses. Significantly, the use of a fully integrated, VSM-focused platform grew substantially over the past year, from 7% to 24%.

Elaborating on their reasoning for VSM implementation, an IT and business operations executive from a leading healthcare provider stated, "VSM puts the data in context. What and how we do digital transformation is derived from opportunities to improve from looking at a product through the VSM lens."

AI enhances Value Stream Management success

Survey participants were asked to provide their thoughts regarding AI's opportunity for VSM. An overwhelming 90% of respondents stated that AI offers opportunities for advancements to VSM. When asked how they were leveraging AI to enhance their VSM initiatives, 47% cited improving predictive analytics, followed by automating workflows and processes (46%), and improving product quality (44%).

AI tools, such as Broadcom's Vaia for Value Stream Management, enable organizations to magnify the core benefits of VSM, such as increased visibility, alignment, and efficiency, enabling more effective digital transformation.

Progress overcoming key challenges

Despite continued growth in VSM adoption and benefits, this report revealed several challenges organizations face in fully realizing their VSM initiatives, including low team participation and lack of visibility. One challenge that directly impacts the customer lifecycle is tracking and reporting value. Just 5% of companies are utilizing all six customer value metrics listed in Broadcom's VSM Maturity Model. The majority of respondents (33%) are leveraging just three of these metrics.

Not surprising, the top metric used to measure customer value was customer happiness (67%), followed by sales (59%), and customer support (53%). Coincidentally, this year's survey found a remarkable increase in customer service team participation in the value stream rising from 25% of companies in 2024 to 40%. This makes sense considering improving the customer lifecycle was the most important issue for leaders in 2025. Having an accurate and comprehensive understanding of how the customer perceives value is crucial. This is a major area of improvement for businesses moving forward.

To learn how value stream management drives digital transformation and customer value, download the complete research paper here.

Survey Methodology

Executives as well as IT and business leaders at enterprise companies representing a wide range of industries were invited to participate in a survey on their company's VSM initiatives covering objectives, challenges, and solutions. Responses for selected questions were compared to surveys from previous years to track year-over-year trends. Six executives were selected for interviews to discuss their responses and provide deeper insights. A total of 548 qualified participants from five continents completed the survey.

About ValueOps by Broadcom

ValueOps® by Broadcom is the leading enterprise Value Stream Management (VSM) platform. With capabilities that bring together Strategic Portfolio Management (SPM), Agile Management (Agile PPM), Value Stream Integration, and Enterprise Analytics, only ValueOps uniquely accelerates digital transformation by improving visibility, alignment, and efficiency at every stage of value creation.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation. For more information, go to https://www.broadcom.com/value.