AI-Empowered Value Stream Management: Your Key to Successful Implementation
Artificial Intelligence (AI) is set to revolutionize Value Stream Management (VSM) across near-, mid- and long-term cycles, according to a survey by Broadcom Inc. The survey reveals a dynamic and diverse AI adoption landscape in VSM, with AI-powered tools providing data-driven insights, automating repetitive tasks, and driving productivity gains.
In the near term, AI will primarily focus on IT optimization, automating tasks and improving operational efficiency. This automation enhances service delivery, cloud workload management, analytics, and visualization within VSM. Early adopters of GenAI tools are already seeing a 66% increase in employee productivity.
As we move into the mid-term, AI will play a critical role in areas such as rapid ideation, testing, and scaling validated hypotheses, which become key competitive factors. AI-driven productivity allows strategic portfolio management, shifting investment from sustaining to innovation. The role of product management evolves to focus on "ideation and prioritization," identifying opportunities, designing experiments, measuring, and iterating quickly.
In the long term, the focus shifts from speed to the quality of innovation, with AI writing more software. Intelligent chatbots and assistants powered by GenAI potentially improve customer service, internal communication, and user experience with personalized 24/7 support.
However, building, maintaining, securing, and ensuring compliance of knowledge bases is key to VSM and needs substantial investment. As AI automates tasks, the demand for domain experts grows. Organizations must adapt workforce planning and training, investing in upskilling and reskilling to prepare employees for the AI era's evolving demands.
Serge Lucio, the VP and GM of the Agile Operations Division at Broadcom Inc., emphasizes the importance of AI in the future of VSM. He states, "AI-powered automation enhances service delivery, cloud workload management, analytics, and visualization within VSM, indicating a clear integration of AI technologies to optimize IT operations and value streams."
While exact quantitative details on AI adoption rates in VSM from the survey are not provided, the narrative indicates that AI adoption is progressing but has not yet fully matured across enterprises using VSM tools. The survey reveals that very few organizations have reached the highest levels of VSM maturity, pointing to ongoing opportunities for improvement in efficiency, alignment, and visibility—areas where AI can play a critical role.
Broadcom's survey also highlights the urgency in adopting AI effectively, with organizations not advancing with AI risking significant financial losses. This underscores the importance of adopting AI in VSM to deliver improved decision-making and automation.
In conclusion, AI is becoming a foundational element powering future VSM capabilities, especially through automation and enhanced insights. However, most organizations are still in early or intermediate stages of maturity in leveraging AI fully within their VSM practices. To fully benefit from AI, organizations must invest in workforce development, ensuring they have the necessary expertise to build, maintain, and ensure the compliance of AI-driven knowledge bases.
- Serge Lucio, acknowledging the significance of AI, asserts that AI-powered automation is crucial for optimizing IT operations and value streams within VSM, as it boosts service delivery, cloud workload management, analytics, and visualization.
- As we progress towards long-term VSM implementation, AI is poised to write software and power intelligent chatbots and assistants, enhancing customer service, internal communication, and user experience, providing 24/7 personalized support.
