Software has become integral to human life in today’s technologically evolving era. Whether online shopping platforms, financial systems, or healthcare applications, software is the driving force of modern society. As such, the importance of efficient software delivery cannot be underrated, given the increasing reliance by organizations on software to promote innovation, improve customer experiences, and remain ahead of competitors.
The need to swiftly deliver software products to clients and the general market has increased manifolds. Customers’ requirements continue to evolve, and organizations must keep up with them to compete and sustain in the market. Delays in timely and appropriately responding to market needs can have serious consequences, for example, missing opportunities, revenue loss, and reduced competitive advantage.
The Value Stream Management (VSM) concept becomes more relevant at this point. It is an approach that enables organizations to have comprehensive visibility and control over their software delivery value stream. It provides insights into the entire software development lifecycle, from idea conception to production, and allows teams to identify bottlenecks and inefficiencies, eliminate waste, and streamline their processes.
In other words, VSM empowers organizations systematically to accelerate the software delivery process.
What Is Value Stream Management (VSM)?
VSM is a comprehensive management approach combining leadership and technical practices to facilitate the seamless flow of business value in the end-to-end solution delivery lifecycle. Generally, delivering digitally enabled solutions in large-scale enterprises often involves complex processes that span multiple disciplines’ boundaries.
Unfortunately, this process’s complexity can often lead to:
- Fragmented delivery;
- Passing information from one stage to numerous others;
- Excessive cross-team dependencies;
- Ineffective communication;
- Project delays.
VSM aims to address these challenges by bringing order to chaotic project situations and ensuring the continuous flow of value-producing work across the organization.
The need for effective value stream management has become more obvious as organizations struggle to meet the increasing demands of digital transformation throughout societies. The evolution of VSM is a response to the high complexity and inefficiency caused by software delivery processes.
Traditionally, software development approaches have focused on specific processes or functional areas that lead to ineffective results and delays. VSM has emerged as a solution to these issues by emphasizing end-to-end process visibility, collaboration, and continuous improvement.
Significance of VSM
VSM is a lean management approach used to analyze and visualize the flow of information and activities required to provide customers with products or services. It is based on a comprehensive analysis of the whole value stream covering both types of activities which are increasing values but also those that do not contribute to them.
The importance of value stream management in a certain system increases manifolds due to its ability to identify:
An organization can improve processes, streamline procedures, and ultimately increase customer satisfaction and efficiency by assessing the flow of the value stream.
Why Is VSM Useful for Organizations?
VSM helps organizations in the following ways:
- Waste Identification and Elimination
The organizations can identify inactive activities that do not add value, for example, unnecessary information exchanges, excessive inventories, overproduction, undesirable wait times, and faults, through a visual valuation of the value stream.
It is possible to target these wastes with a view to improvement or elimination, which results in cost savings and improved productivity.
- Identification of Process Inefficiencies
VSM explains the sequence of activities and process handoffs when a product or service is delivered. It is a way of identifying bottlenecks and inefficiencies in the flow of processes. To optimize the process flow, organizations can: shorten waiting times, increase performance, and improve customer service.
- Cross-functional Collaboration
VSM emphasizes cross-functional collaboration during product development by involving representatives and teams in mapping. This fosters a shared understanding of the value stream and product vision, promotes problem-solving, and enables better coordination among different functional units of the organizations.
- Promoting Continuous Improvement
VSM serves as a starting point for measuring improvement efforts. As a result, organizations can monitor progress, assess the effectiveness of implementing changes, and identify further areas for improvement by comparing this state map with a future one.
How Do Continuous Integration (CI) and Continuous Delivery (CD) Support VSM?
Continuous integration (CI) and continuous delivery (CD) are software development practices that aim to put in order and automate the process of building, testing, and delivering software applications. These development practices help to speed up the software development process by managing the flow of activities and offer a better value for customers as they result in faster and more efficient delivery of software products.
CI emphasizes integrating code developed and modified by multiple developers into a common repository. The CI adopts a proactive approach to minimize integration issues before they occur. Moreover, to preserve code quality, it demands automated development and testing of the code. In the development process, CI assists in identifying and resolving conflict or errors as soon as possible.
The CD is a software development practice that automatically prepares code changes for production. CD, which deploys all code changes to a test or production environment following the initial build phase, expands upon CI as part of modern application development.
When properly implemented, developers will always have a deployment-ready build artifact that has passed a standardized test process. CD enables businesses to rapidly and consistently provide their customers with new features, enhancements, or bug fixes to reduce lead time and improve customer satisfaction.
In the context of VSM in software development, CI and CD bring the following benefits to organizations:
- Streamlining software development processes to improve workflow, minimize errors, and enhance productivity;
- Reducing process waste and improved efficiency by minimizing process handoffs, faster feedback, and minimal lead time;
- Enhancing quality and reliability of the product as well as the process;
- Accelerating feedback and continuous improvement cycles.
3-Step Strategy to Leverage VSM for Accelerating Software Delivery
Software delivery is an important use case to demonstrate the phenomenon of VSM because it has repeated steps and multiple handoffs. Organizations have employed manual gates in the past years to prevent unplanned process interruptions. Gate means a visual representation of an activity, such as building or test, enabling the work to be carried out in constant value streams.
Separating development, operation, infrastructure, security, and other teams and tools during the software development life cycle results in handovers, delays, and obstacles.
Below is a 3-step strategy to leverage VSM to accelerate the software delivery. The steps include:
- Identification of bottlenecks and waste in the value stream;
- Streamlining and optimizing the value stream;
- Enhancing collaboration and communication.
Step 1: Identification of Bottlenecks and Waste in the Value Stream
There is a need to identify bottlenecks and waste sources that hinder the effective flow of the value stream to increase its efficiency. By recognizing those issues, organizations can aim to enhance and optimize them.
For identification of the bottlenecks and wastes in the value stream, the following techniques can be used:
- Value Stream Mapping
Visual representations of the end-to-end value stream are generated by value stream mapping, capturing every step and handoff, which is important in delivering customer value. This mapping method identifies activities that do not add value, such as bottlenecks, delays, and interruptions.
- Value Stream Observation
This refers to closely examining the value stream and the activities, handoffs, and flows of operations and information. This technique enables to identify areas where there is a lack of effectiveness, higher wait times, and possible bottlenecks.
- Data Analysis
Relevant data and metrics relating to the value stream, such as cycle times, lead times, or flow rates, should also be analyzed. Thus, organizations can identify patterns, performance gaps, and waste areas by looking at these data.
- Causal Analysis
It is important to perform a causal analysis to understand the reason for certain problems and bottlenecks. The technique allows organizations to address core problems and implement effective solutions.
Step 2: Streamlining and Optimizing the Value Stream
Streamlining and optimizing the value stream is important to make the software delivery effective. By identifying areas requiring improvement, organizations can improve the flow of activities and increase their value creation. Organizations can employ various strategies to streamline and optimize the value streams.
- Identify Value-adding Activities
Activities that directly contribute to customer value need to be identified and prioritized. The flow can be streamlined and efficiency enhanced by focusing on such value-enhancing activities and reducing or eliminating those with no added value.
- Simplify the Process
Organizations can save costs, minimize errors and improve the whole flow if they remove unnecessary steps, minimize the process complexity or variations, and simplify the processes.
- Eradicate the Bottlenecks
To facilitate the flow of activities, remove bottlenecks and obstacles. Strategies should be implemented to overcome these obstacles, such as reallocating resources, restructuring tasks, or improving communication and coordination amongst teams.
Step 3: Enhancing Collaboration and Communication
Collaboration and efficient communication are essential to implement VSM and accelerate software delivery successfully. Cooperation between different teams working on software delivery is encouraged through the VSM. To help address bottlenecks and optimize the exchange of information, it brings together representatives from each functional group to foster shared understanding, disseminate information, and promote cooperation.
To strengthen the collaboration for promoting the VSM, communication tool and practices can play an important role. Regular meetings contribute to sharing progress and knowledge and coordinating efforts among teams participating in a value stream.
These meetings help promote an open exchange of information, maintaining a common focus on optimizing value streams.
In addition, it is helpful to use visual aids such as value stream maps, diagrams, and dashboards to get clear and precise information.
Example: How VSM Can Accelerate Software Delivery
Let’s consider a scenario where the development team is working on an additional feature in another context of software delivery. Once the feature is completed, it will be transmitted to a testing team for verification. Once the tests have been carried out, the deployment team will handle packaging and deployment.
The feedback loop returns to development when problems are identified, leading to delays. The release will then be passed on to the operational team for deployment into production.
It is clear from the perspective of this value stream that significant delays and manual handovers are taking place through meetings and email. The implementation of VSM may mitigate this for more efficiency.
The VSM provides a means to identify bottlenecks and waste, streamline the process, and reduce delays. VSM speeds up the software supply, reduces lead times and errors, and improves efficiency in its entire process by optimizing the value stream, implementing automated systems, and promoting collaboration.
In this case, VSM makes it possible to speed up the process by automation and integration of development and quality assurance systems to eliminate manual delays. Moreover, bottlenecks can be identified, and the process could be made more efficient by merging testing with security activities as well as reducing waiting times.
In addition, defect resolution can be made efficient by automating testing and enabling early detection, reducing back-and-forth exchanges.
In conclusion, the VSM accelerates software delivery by identifying bottlenecks, reducing waste, and simplifying handovers. Businesses can optimize their processes, reduce delays, and increase efficiency by mapping and automating the value streams.
VSM offers a quick approach to software delivery, facilitates cooperation, and minimizes lead times for delivering quality software. Organizations can accelerate the time to market, increase productivity, and improve customer satisfaction by adopting VSM in today’s fast-evolving software landscape.