January 9, 2023 – New research finds growing adoption of value stream management (VSM) among global enterprises. Sponsored by Broadcom and conducted by Dimensional Research, the 2nd annual survey of more than 500 executives, IT and business leaders found that by the end of 2023, 84 percent of enterprises will have adopted VSM, compared to 42 percent from the 2021 survey.
The business trials of the last few years remain, with many concerned about supply chains, gathering business data, and improving inefficient processes in 2023. Yet, in a developing trend, the top strategic focus for 2023 is on the customer, specifically on increasing customer value, replacing the traditional 'increasing speed to market' strategy.
Increasing Customer Value is the Top Strategic Business Focus for 2023
Increasing customer value is the number one strategic goal for organizations in 2023, which is up from the third spot last year. Those interviewed shared that while their processes and supply chains have been disrupted over the last few years and they had to focus internally, they acknowledge that their customers have also suffered. Executives have shared poor customer experiences with products and services that have motivated those customers to consider competitors and overall brand loyalty has declined.
The research shows 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 satisfaction with value and quality. The survey reveals the focus for the upcoming year is on:
● increasing customer value (58%)
● improving product quality(55 percent)
● reducing costs (51 percent)
● adding more customers (50 percent)
● increasing profits (49 percent)
● increasing speed to market (45 percent)
Value Stream Management Delivers Real-World Benefits
In research, the question of what benefits have actually been received is often the most telling. Companies often adopt technology or a new initiative driven by the promises of specific benefits, but many technologies or solutions fail to live up to the hype. In this case, the top 5 benefits companies have received from VSM are:
● increased transparency (42 percent)
● improved organizational alignment (39 percent)
● faster solutions to customers (38 percent)
● data-driven decision-making (37 percent)
● improved access to data (36 percent)
Says Jean-Louis Vignaud, Head of ValueOps, Broadcom, "The data clearly shows those with VSM are leveraging more indicators to track customer value, representing more sophistication but also have a greater focus on direct customer feedback such as support and social media. The research also found companies with a VSM practice have significantly better tools and processes to capture and track these customer value metrics than those without VSM."
"I am heartened by this renewed focus on customer value," said Marla Schimke, Head of ValueOps Marketing, Broadcom. "The pandemic wrought countless changes to organizational strategy and business processes, and as a result, we've started to see a return to the siloed operations we've worked so hard to eradicate. Now, we're seeing business leaders taking a step back and recognizing that speed to market means little if customers aren't realizing value. This research shows that value stream management is helping many to realign their business and technology goals to ensure the organization is delivering that value."
Value Stream Management Addresses Organizational Challenges and Enters Mainstream Adoption
The research also identified key challenges for 2023 such as supply chain issues, inefficient processes, remote workers, and increasing customer value. In addition, 68 percent stated there is a disconnect between business strategy and development. While 72 percent of those in technical leadership roles indicated they are frustrated by the constantly changing priorities from business leaders.
Early adoption started about four years ago, while we are now seeing over the last two years a shift to mainstream adoption of VSM to address the challenges and frustrations facing businesses. The research finds that VSM adoption has moved from early adopters to the mainstream, identifying that while 36 percent will just be starting their VSM implementation, 60 percent of participants indicated that they will be using VSM to deliver at least one product in 2023. VSM also appears directly tied with companies who are pursuing digital transformations (DT), as 95 percent of those with VSM initiatives also are implementing DT.
VSM Trends for 2023
On January 24th at 1:00pm EST, Broadcom CTO, Laureen Knudsen will present the survey findings and discuss the VSM trends shaping 2023 and beyond. Interested parties can sign up here.
A report of the complete survey findings can be found here.
Executives and IT and business leaders at enterprise companies representing all industries were invited to participate in a survey on their company's digital transformation initiative covering objectives, challenges, and solutions. The survey was administered electronically by a third party, and participants were offered a token compensation for their participation. A total of 505 qualified participants from five continents completed the global survey. All participants had direct responsibilities for digital transformation at their company.
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.