Any business that interacts with customers should recognize the
importance of providing value. Without demonstrable, quantifiable value,
customers fail to make the transition from buyer to enthusiast.
However, as markets grow and audiences discover ever more purchasing
options, it’s becoming increasingly difficult to create value
propositions that stand out from the crowd. Value stream management and
value stream mapping may offer the solution.
Value stream mapping (VSM) is a subset of value stream management,
which is the process of integrating every aspect of your business
workflow—the end-to-end process of developing and delivering software to
your clients. Value stream management operates in a continuous cycle
starting with the feedback from clients that drives demand, and ending
with the operational management of the features that support that
demand, which in turn drives new feedback. This business workflow is
supported by the integration of technical solutions at every step of the
way, from prioritizing and planning through building, testing, and
deploying, and onto operational and service management.
But integration only describes the mechanics of value stream mapping;
true value comes from value—customer value, specifically. Workflow has
to be able to optimize the flow of value to the client, and by
extension, the business. Additionally, effective VSM helps identify and
resolve the bottlenecks, viewing your business as an integrated
stream, not a series of individual points. Value stream mapping
describes the reporting aspects of value stream management.
Mapping places value front and center throughout the entire
development and delivery process. Taking the form of highly-visual
flowcharts, VSM uses symbols and directional arrows to represent work
tasks and information flows. But where VSM differs from traditional
flowcharts, is in its focus on value. Every item associated with every
step in the process is quantified as adding (or not adding) value, as
seen from the customer’s view point. The business may then review,
revise, or reconsider those tasks that do not add obvious customer
value.
Value stream mapping is a part of the Lean approach to
business—maximizing value while minimizing waste. Lean defines ‘value’
as anything that the customer is willing to pay for. This includes
relevant services, products, features, support ect. Waste describes
steps or aspects of the process that customers are not interested in
paying for, such as defects, wait time, low-value features, unnecessary
documentation or approval processes, task switching, and searching for
information.