What is Value Stream Management?

Value Stream Management (VSM) is derived from lean manufacturing principles, in which a software delivery process is monitored in terms of its efficiency at each step.


What it is: Value Stream Management (VSM) focuses on managing software delivery processes such as DevOps as value streams, assessing and improving both efficiency (saving money) and effectiveness (adding benefit) at each step.

What it does: VSM enables software development decision makers to ask why things are as they are and whether they can be improved; it accesses the overall process in terms of hand-offs, repetition, and other criteria, enabling process improvement as a whole. Additionally it assesses the ability of software workflows to deliver innovation into deployment, and make appropriate improvement decisions.

Why it matters: VSM enables organizations to simplify workflows, by identifying and removing bottlenecks in the development, testing, and deployment process. It provides measures that link to return on investment, customer satisfaction, and other business-facing criteria; and it delivers real-time insights to decision makers to guide the day-to-day prioritization of development goals.

What to do about it: Look to VSM as a route to remove risk and increase control of technology-based innovation, putting business drivers and value first. Remember an organization’s value stream should create new efficiencies or positive, tangible business ROI. Set priorities based on which parts of the business will feel the most positive impact. Connect business drivers with innovation goals.

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