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SAN JOSE, Calif., January 4, 2024 – Broadcom today introduced the Value Stream Management (VSM) Maturity Model to help enterprise organizations evaluate and advance their VSM journey. Developed with insights gleaned from Broadcom’s extensive experience working with some of the largest, most complex enterprises, the model was also informed by the results of a survey of enterprise practitioners, which found very few teams – about two percent – have reached the top stages of overall maturity.
“Value stream management has become a pivotal strategy for digital transformation, but success requires that teams understand where they’re at and where they’re going,” said Jean-Louis Vignaud, head of ValueOps, Broadcom. “To help enterprise teams on their VSM journey, we developed a progressive model that defines maturity from the early stages focused on breaking down silos to full maturity, delineated by data-driven alignment and an established culture of continuous improvement. Our hope is this model will serve as a guide for organizations as they progress along their digital transformation journey.”
The VSM maturity model comprises five progressive levels to evaluate and advance an organization's VSM journey. It begins at the foundational level, where teams operate in silos with minimal end-to-end process awareness and progresses to a culture of continuous improvement where data drives maximum efficiency and alignment.
Level 1: Foundational – At this phase, value streams are not being managed consciously; teams know they’re delivering products or services but don’t fully understand the complete end-to-end process. Teams work in silos, and there is little alignment and few data insights to support decisions.
Level 2: Value Stream Aware – This level is characterized by a growing understanding of the organization’s value streams and the need for continuous improvement. Teams have started to employ VSM concepts, but these efforts may be in the early phases.
Level 3: Collaborative and Visible – With this level, there is a strong emphasis on alignment and collaboration throughout entire value streams, with an increasing focus on reducing inefficiencies and improving overall performance.
Level 4: Data-Driven – Characterized by a strong emphasis on data-driven decision-making and a high level of data maturity throughout all value streams, teams are focused on using data to fuel ongoing improvements and optimize overall performance. Teams are also ditching quarterly status reports for real-time dashboards.
Level 5: Full Transparency and Flow – Overall, this level is characterized by a culture of continuous improvement. Teams have achieved full visibility and transparency in their operations. Across the organization, individuals are constantly suggesting better ways of working, leading to ROIs of as much as 471%, as seen in the Forrester Report on the Total Economic Impact™ Of ValueOps by Broadcom.
The VSM maturity model offers a roadmap for organizations looking to enhance their VSM maturity, providing valuable insights, practical guidance, and actionable steps. With an understanding of the five levels of VSM maturity, teams can begin to apply these insights to their specific organizations and initiatives.
To learn more, view the VSM Maturity Model and recent industry survey by Dimensional Research examining the current state of VSM maturity.
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 www.broadcom.com.
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