Value Stream Management the 'linchpin' for digital transformation success

Senior executives say VSM puts organizations ahead in digital transformation and innovation.

CloudBees has released the company’s Global Value Stream Management (VSM) Survey results revealing senior executives believe VSM is the key to an organization’s digital transformation. The survey, which polled 600 senior executives globally, also uncovers the importance of VSM in removing barriers and increasing time for innovation.

In today’s digital-first landscape, organizations must digitally transform in order to remain competitive and relevant in their respective industries. Still, many digital transformation efforts fail. According to 90% of senior executives, organizations that commit to VSM will be ahead of those who do not when it comes to digital transformation, and they agree VSM makes these programs easier to achieve. The survey also reveals agreement among executives (92%) that VSM offers employees more time for innovation, alleviating time spent managing challenges.

"Our global survey clearly highlights the critical role value stream management plays in the success of any organization’s digital transformation – whether they are at base camp or much further along in the journey,” said Shawn Ahmed, Chief Product Officer, CloudBees. "VSM provides visibility into every facet of end-to-end software delivery, providing vital metrics and helping to efficiently flow value – connecting software delivery to business outcomes.”

Additionally, the survey uncovers significant misunderstanding about VSM – defined as a systems-thinking practice to improve the flow of business value from customer need to customer value. While 90% of senior executives in the poll say they are familiar with the concept, when questioned on the definition only half were able to select the correct answer. In fact, two in five respondents confuse the concepts of value stream management and value stream mapping. When asked about understanding of the topic within their organization, 72% admit there is still confusion about what VSM actually is and/or does.

The survey also found:

Business decisions around VSM are made at the C-level, according to 56% of respondents.

Employee commitment to VSM is the main roadblock to adoption, with 35% of respondents saying getting mid-level employees committed to VSM thinking, and 31% saying getting senior leadership committed to VSM thinking are the biggest roadblocks. Second to this (33%) is scaling VSM efforts throughout the organization.

Digital transformation plans are in place, and going well, say the majority (96%) of senior executives; only 18% say they are moving, but not fast enough.

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