June 12, 2023

Value Stream Management Provides Clear Path Forward for Digital Transformation

Harvard Business Review Paper Examines Benefits of VSM’s Powerful Data-Driven Process

June 8, 2023 – Broadcom (NASDAQ: AVGO) recently sponsored a briefing paper from Harvard Business Review (HBR) Analytic Services titled, Entering The Age of Data-Driven Digital Transformation With Value Stream Management. Organizations have been working towards digital transformation for almost a decade, with many challenges still creating roadblocks to the other side. The paper addresses the many challenges organizations have faced with digital transformation efforts over the past several years and reveals the barriers that continue to thwart progress and goes on to illustrate how a large multinational company overcame them with VSM.

According to global consultancy, Bain & Co., the vast majority of organizations struggle with digital transformation. Research shows just eight percent of companies have achieved their targeted business outcomes from their investments in digital technology.¹

Often, organizations lack complete visibility into the entire value stream and cannot generate the desired customer innovation or even meet their digital transformation objectives. Missing data is often a problem. In today’s enterprises, an estimated 69% of leaders agree that much of their data is trapped and unable to be fully used.² Harvesting data insights and gaining operational speed are prerequisites for successful digital transformation. VSM enables data-driven decision making for organizations to align their priorities with customer value, translating to overall success in business outcomes.

The HBR paper shines a spotlight on a successful data-driven approach to VSM with the example of Tyson Foods, America’s largest food processor, a $53 billion multinational corporation. The paper explores how Tyson uses technology and agile processes to achieve successful digital transformation outcomes, reduce risk, drive innovation, and deliver higher value for customers and shareholders. Prioritizing investments is almost always a matter of visibility into supporting data. In one instance, Tyson used their VSM tools to discover that current demand exceeded 300% of its development team’s capacity. Now their demand runs at about 100-120% of Tyson’s capacity with the work review and prioritization framework in place.

“The winners of tomorrow are not going to be the businesses that have got the best assets or customer experience today,” contends Bain’s Anderson. “It is going to be the people who can integrate the fastest to adapt to the future. Where in that process do I need to improve so that I can make sure that my customer is getting good value?”

To learn how your organization can accelerate digital transformation, reduce costs, and boost customer value with value stream management, download the full HBR paper.

¹Vishy Padmanabhan, Steve Berez, and Pascal Gautheron, “Four Myths of Digital Transformation: What Only 8% of Companies Know,” Bain & Co., June 25, 2019. https://www.bain.com/insights/four-myths-of-digital-transformation-what-only-8-percent-of-companiesknow/.

²Wakefield Research, “Data Activation Report,” May 3, 2022. https://wandisco.com/news-events/press-releases/study-reveals-massive-incentive-activate-unused-data

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 www.broadcom.com.

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Tag(s): Value Stream Management , ValueOps , Rally , Clarity , ConnectALL

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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