How Digital Product Management Drives Value Stream Management Success

It’s no secret that accelerating and optimizing digital transformation is now critical to the success of nearly every organization. The ability to harness digital technologies is what will propel the achievement of key business objectives. For example, a Deloitte study found that digital technologies can accelerate the achievement of key strategic objectives by 22%.[1]

In pursuit of digital transformation initiatives, value stream management (VSM) has emerged as a critical strategy. Although VSM has been around for decades, its uses, urgency, and underlying technologies are what bring this approach to the forefront for many leaders.

Essentially, VSM refers to the techniques used to optimize the realization of value from an organization’s products or services. As business leaders pursue their VSM initiatives in today’s digital world, many are finding digital product management (DPM) to be a key accelerator and enabler. In the following sections, we provide a high-level introduction to DPM and describe its key benefits.

An Introduction to Digital Product Management (DPM)

Today, DPM represents an essential part of a digitally optimized business. DPM is a strategic approach to ensuring that technology investments generate maximum return. With DPM, teams apply a set of practices that help optimize scalable technology management.

DPM requires a shift from a project management-centric approach to a product management-centric approach. Although the two phrases sound similar, this represents a significant shift that has profound tactical, strategic, and cultural implications.

When teams fund one-time projects, they must follow extensive processes associated with project definition, justification, funding, etc. And, once a project is finished, the process has to start all over again for the next project. .

In contrast, when teams take a product-centric approach, they begin to build funding around strategic products. Products are backed, strategically aligned with customer value and supported by dedicated teams. These teams focus on defining value and tracking the delivery of value over time. Using DPM, product managers can effectively communicate the features delivered and their impact and provide a roadmap of plans and timelines.

DPM Benefits: Ease of Value Stream Management

DPM enables organizations to improve their operational and delivery value streams. By basing VSM initiatives on a solid foundation of DPM, teams can realize a number of benefits:

  • Improve alignment. With an optimized DPM, teams can link work to outcomes defined as part of the overall business strategy. This creates synergies and alignment between teams, allowing better focus on key results.
  • Strengthen accountability. Funders need to understand how the money is being used and whether expected results are being achieved. DPM gives teams better visibility, so they can more effectively assess whether investments are delivering the desired results.
  • Increase agility. DPM allows you to make changes along the way. By working from roadmaps, teams can better understand the impact of changes, intelligently assess trade-offs, and iterate faster and smarter.
  • Improve results and return on investment. By using DPM to power VSM initiatives, teams can optimize investments so they deliver maximum value. Additionally, they can more effectively demonstrate the ROI of the investments that have been made.

Conclusion

As organizations pursue VSM to achieve their digital transformation goals, DPM represents an invaluable enabler. With DPM, teams can more effectively ensure that their digital products and services deliver the best return on investment and greatest customer value. To learn more about how DPM drives VSM success, please visit VSM On Demand.

Learn how organizations are using value stream management to gain end-to-end visibility to align work, resources, and investments to areas that have the most impact.

[1] Source: Deloitte, “Discovering the link between digital maturity and financial performance”, May 26, 2020, Gurumurthy, R., Schatsky, D. and Camhi, J.