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Key Takeaways
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Here on the Broadcom Software Academy and elsewhere, you’re bound to have read about the promise of Value Stream Management (VSM). Maybe you’ve read that through VSM, teams can gain benefits like enhanced visibility, improved alignment, and heightened efficiency.
But what do these benefits really mean in practice? What kind of impact do these gains actually have on an organization’s bottom line?
Based on findings from a new Forrester study, Broadcom believes the answer to this latter question can be summed up in one word: enormous.
Forrester Total Economic Impact™ Study on ValueOps
A new study offers an in-depth look at one representative organization’s use of ValueOps by Broadcom. The Total Economic Impact™ of ValueOps by Broadcom, is a commissioned study conducted by Forrester Consulting on behalf of Broadcom.
This post offers an overview of some of the key takeaways from this study.
Key highlights
Review the study and you’ll see how the organization — a global aerospace manufacturing company — realized these significant benefits:
- ROI of 471%
- IT productivity gains ranging from 20% to 50%
- $82.5 million saved through reduced project waste
- Total economic benefits of $98.9 million over three years
Challenges
Before its ValueOps implementation, the organization was struggling with several challenges:
- Lack of alignment around the highest-priority projects, which led to disagreements and confusion.
- Limited visibility into project status and financials, which made it difficult to track progress, identify bottlenecks, and make improvements.
- Excessive administrative burden for project managers and agile teams, which reduced the time they could spend focusing on key efforts.
Key benefits
With ValueOps, the organization was able to turn all their struggles around. Here are several of the benefits they experienced and the actual dollar savings they realized.
Increased visibility to reduce project waste. Total benefit: $82.5 million
ValueOps gave teams visibility they didn’t have before. They could view all projects in progress, the resources being applied to these projects, and the priorities the projects were supporting. Consequently, they could work with business leaders to make much more well-informed decisions. Ultimately, they were better equipped to ensure they were focusing on the most high-value priorities—and to stop dedicating resources to those efforts that weren’t a priority.
Within the first year alone, they were able to eliminate non-strategic projects that accounted for a significant percentage of their $500 million annual budget—realizing savings of $10 million.
Improved IT team efficiency. Total benefit: $23.6 million
Through their initiatives, the team quickly saw significant reduction of the IT organization’s administrative workload, which made them far more efficient. For example, after bringing a business unit onto the tool, they found that within one year the group was 50% more efficient. Because they had everyone working from one tool, they could eliminate the cost and effort associated with using slides and spreadsheets for analysis, tracking progress, and collaborating.
Improved alignment of the analytics organization. Total benefit: $13.1 million
In years past, they had several analytics teams working independently across various organizations. Over time, they moved to having a centralized analytics function, which yielded a number of benefits and cost savings. Ultimately, they were able to redeploy more than 60 full-time employees.
Streamlined financial processes. Total benefit: $5.4 million
Previously, the team relied upon top-down decision-making. This resulted in IT spending significant time and effort working with the finance team to field requests and go back and forth to arrive at an agreed-upon set of numbers.
With ValueOps, the IT and finance organization could work from a single tool and look at the same data. This has yielded improved visibility and clarity, and it has enabled teams to take a more bottom-up approach. Planning became faster, more efficient, and more effective. Plus, teams gained better visibility into which projects contributed most directly to the highest-level priorities.
Conclusion
To learn more, be sure to take a look at the study, “The Total Economic Impact™ of ValueOps by Broadcom,” which was published in November, 2023. See for yourself how a representative ValueOps customer realized significant ROI and cost savings.
Marla Schimke
Marla brings more than 20 years of experience in marketing leadership for both start-ups and Fortune 500 companies including CA Technologies, Microsoft and Ernst & Young. She is a thought leader who combines a unique blend of technology and marketing experience to successfully position cutting-edge solutions to B2B...
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