For years now, digital transformation has been a vital strategic initiative for many enterprises.
In recent years, many organizations have made significant strides in their transformation efforts. However, persistent barriers have held many teams back. In fact, a report from Bain & Company found that over 90% of organizations have struggled with digital transformation—and only 8% have achieved targeted business outcomes from their digital technology investments.1
What are the primary obstacles that prevent teams from realizing their transformation ambitions? Quite often, it’s the internal barriers that prove most stubborn. For example, one survey found that the age-old gap between IT and business remains a problem for the vast majority of organizations: Over two-thirds, 68%, of organizations cited misalignment between business and IT. (The findings from this survey are now available in a report, which is entitled 2023 Value Stream Management Trends.)
Another persistent problem? Siloed data. A study by Wakefield Research found that within today’s enterprises, 69% of enterprises report that data is isolated and can’t be fully leveraged by the people who need it.2
Value Stream Management: The fuel for transformation
To achieve transformation imperatives, leaders need to find a way to finally break through these persistent barriers. Fundamentally, this requires gaining the enhanced visibility that can only come by leveraging data that’s been locked away in functional silos. To fuel transformation, teams need to accurately track all facets of the digital value stream—including products, people, and processes.
This is why establishing effective value stream management (VSM) is such a vital imperative. With VSM, teams can gain the unified, cross-domain intelligence needed to optimize every phase of value delivery, from planning and investment to development and rollout. Through VSM strategies and solutions, teams can finally bridge the persistent gap between business and IT. In the process, they can break through the barriers that stifle digital transformation.
New report reveals key obstacles, solutions to transformation success
A new report from Harvard Business Review Analytic Services, which is entitled “Entering the Age of Data-Driven Digital Transformation with Value Stream Management,” takes a detailed look at some of the challenges that have plagued enterprises’ digital transformations in recent years. The report’s authors also reveal some of the strategies and tools that have been proven to help teams overcome these obstacles, drawing on insights from industry experts at Bain & Company and IDC.
This report also provides a profile of Tyson Foods, the largest food processor in the US. The quest for accelerated digital innovation is top of mind for the team at Tyson Foods. View the report and see how VSM helped Tyson’s leadership establish the critical instrumentation they needed to manage their transformations.
Through VSM strategies and solutions, they’ve eliminated data silos and established a single, unified way to track spending and resources. VSM enabled the team to close the loop between investments and the value those investments deliver. In the process, they’ve gained the intelligence needed to prioritize, invest, and plan more effectively. For example, by gaining better visibility and alignment around value streams, they were able to reduce or deprioritize 30% of their in-flight technology projects.
In addition, with an effective review and prioritization framework in place, the team discovered that ongoing demand typically exceeded 300% of the development team’s capacity. Now, they’re able to ensure they’re running closer to 100-120% of capacity. Today, the business and development teams are focused on delivering the highest customer value, can manage their workflow efficiently, and feel more satisfied with their work.
To learn more, be sure to review the Harvard Business Review Analytic Services report, “Entering the Age of Data-Driven Digital Transformation with Value Stream Management.”
Visit us here for more information.
1 Vishy Padmanabhan, Steve Berez, and Pascal Gautheron, “Four Myths of Digital Transformation: What Only 8% of Companies Know,” Bain & Co., June 25, 2019
2 Wakefield Research, “Data Activation Report,” May 3, 2022
Digital Transformation