Digital value streams are the linked set of activities that deliver software-based capabilities that power business value streams. Every digital value stream spans five canonical phases: Plan | Build | Test | Deliver | Run.
Digital value streams power business value streams, the linked set of activities that deliver value to end customers, suppliers or employees. Unlike digital value streams, business value streams vary widely in their phases. An example business value stream in banking is mobile banking or even consumer banking writ large. An example business value stream in insurance is claims processing, from submission through closure. An example business value stream in telecom is customer on-boarding. Since every company in virtually every industry today is software driven, every company’s competitiveness is dependent on their digital value streams.
Every business value stream requires one or more digital value stream, since every business value stream is powered by digital systems, which are often thought of as digital products, complete with product managers and owners. Today’s reality for business value stream owners is that they have minimal visibility and considerable frustration regarding the value their digital value stream is delivering. Meanwhile, the digital value stream owner is drowning in complexity and lacking the systemic ability to exploit the proven practice of Value Stream Management. This results in competitive weakness, especially when challenged by digital-native competitors who rapidly and continuously deliver high-quality digital value.