Serge Lucio is the VP and GM of Agile Operations Division, Broadcom Inc. Read Serge Lucio's full executive profile here.
The decades-long rush of businesses to digitize their business processes shows no sign of abating. Digital technology has spread across the supply chain and throughout the enterprise—with generally positive effects on business-process speed, accuracy and efficiency. Mobility, analytics-driven customization and generative AI promise to keep digital transformation a top priority for years to come.
What we’ve learned encourages us—to a point. On the plus side, a full 96% of surveyed businesses report receiving benefits from VSM, usually in the form of digital transformation progress. But only 2% report achieving the end-to-end transparency and flow that marks the highest level of VSM maturity. Most are clustered at mid-maturity: aware of value-stream issues and beginning to collaborate, but unable to break through to an integrated, data-driven process.
Companies try to address tool fragmentation by aggregating data from multiple systems into Excel spreadsheets or Smartsheets. It’s a first, tentative step toward VSM visibility, but it’s phenomenally inefficient. One energy company told me they used more than 220,000 Smartsheets—backed by thousands of reports on PowerPoint slides and hundreds of monthly manager-hours—in their homegrown attempt at VSM.
Our survey reflects this divide: Most organizations have just three teams involved in their value stream management initiatives, typically product management, software development and devops. Only rarely do they include customer-facing teams in marketing, customer support or sales.A second, more subtle, barrier to achieving full transparency and flow of information is the role of IT in the value chain.
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