Broadcom: 84% of orgs will be using VSM by end of the year

BY J E N N A SA R G E N T BA R R O N

If you ’ re a regular reader of SD Times you may have gotten the sense that value stream management (VSM) is really taking off in tech We’ve increasingly written about it, launched a new website just for value stream news, and even launched a value stream management conference in 2020

And if that wasn’t enough proof of its growing popularity, a new survey from Broadcom provides numbers to back that up. According to its survey of over 5 0 0 I T a n d b u s i n e s s l e a d e r s , i t i s expected that 84% of enterprises will have adopted VSM by the end of 2023. This is up from just 42% in 2021.

According to Broadcom, early adoption of VSM started around four years ago, and within the past two there has been a shift to mainstream adoption Sixty percent of survey respondents said they will use VSM to deliver at least one product this year

Being at the “mainstream” level of adoption signifies greater maturity in implementations and will enable compa- nies at that point to address challenges they are facing: supply chain issues, inefficient processes, remote workers, and shifting company priorities

“You have to make a concerted effort and get everybody on board and change at the right pace for your organization,” said Laureen Knudsen, chief transformation officer at Broadcom “But you can truly make huge gains in your effectiveness and efficiency and therefore your outcomes if you put these things in place, and you actually take them seriously.”

Looking ahead, Broadcom predicts that increasing customer value will be the number one focus for businesses, with 58% of companies listing it as a priority this year.

Other priorities will be improving product quality (55%), cost reduction ( 5 1 % ) , c u s t o m e r g r o w t h ( 5 0 % ) , increasing profits (49%), and increasing speed to market (45%)

“Customers are much more likely to change whether it’s banking, or insurance, or airlines who they use, ” said Knudsen “You’re seeing people kind of looking at everything fresh And so your customers are looking at, who else can I use? What can I do? Is there a better way for me to do this? So companies are really pivoting to strongly focus on that customer value ”

Broadcom also asked respondents what benefits they are seeing from VSM and the top five answers were increased transparency (42% of respondents), improved organizational alignment (39%), providing faster solutions to customers (38%), data-driven decis i o n - m a k i n g ( 3 7 % ) , a n d i m p r o v e d access to data (36%).

“The data clearly shows those with VSM are leveraging more indicators to track customer value, representing more sophistication but also having a greater focus on direct customer feedback such as support and social media,” said JeanLouis Vignaud, head of ValueOps at Broadcom “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 ” z