Why you need a …
A value stream is a series of business processes that connect to create a primary organization deliverable from beginning to end. Common value streams align business processes to fulfill a want or need or manage a life cycle. Fulfillment Value Streams contribute to delivering an organization’s value proposition, while Life Cycle Value Streams manage organization assets. Shown here are twenty common value streams that can be found in any organization.
The Customer Order Value Stream begins with a customer order, fulfills that order, invoices the customer, and deposits the receipt.
The Procurement Value Stream begins with a purchase request, executes that request through a purchase order, receives purchased product or service, processes vendor invoice and makes payment.
The Customer Service Value Stream begins with a customer request, and then fulfills that request to a successful resolution.
The Marketing Value Stream identifies a target market, provides relevant organization marketing information, and delivers a qualified sales prospect.
The Sales Value Stream takes a qualified sales prospect and converts that prospect into an approved customer.
The Project Value Stream begins with a project requirement, fulfills that requirement, and ends with project completion.
The Reporting Value Stream begins with a request for information and ends when the development and delivery of a report fulfills that request.
The Planning Value Stream begins with a plan requirement and ends when a plan is developed to fulfill that requirement.
The Innovation Value Stream begins with a target market unfilled need, identifies a solution that will satisfy that need, tests the solution, and develops a business case to commercialize the solution.
The Solutions Development Value Stream begins with a business case, develops that idea into a commercial solution, and introduces that solution to a target market.
The Equipment Value Stream receives a need to acquire equipment, acquires and manages that equipment during its useful life, then removes the equipment at its end of life.
The Facility Value Stream receives a need to acquire a facility, acquires and manages that facility during its useful life, then sells that facility.
The Employee Value Stream begins with a need to add an employee, hires, compensates, develops and manages that employee, and ends with the employee’s termination.
The Cash Value Stream begins with a cash deposit, manages the flow and productivity of that cash, and ends with disbursement.
The Customer Value Stream begins with a new customer, manages the customer relationship, and ends with separation.
The Vendor Value Stream begins with a need to find a new vendor, acquires and manages vendor performance, and ends with separation.
The Portfolio Value Stream begins with the commissioning of a new product or service solution, manages the performance of that solution, and ends with the removal of the solution from the portfolio.
The Inventory Value Stream begins with received inventory, manages the flow, productivity and availability of that inventory.
The Intellectual Property Value Stream begins with creation of IP, manages its use, access, and value, and ends with removal.
The Data Value Stream begins with created data, manages the usage, quality, security and access to that data, and ends with data removal.
Thinking of an organization as a defined series of common value streams offers a new paradigm in workflow problem solving. It dramatically improves the ability to identify cause and effect relationships, makes non-value-added work much more clear and easy to isolate, and, finally, sets the stage for efficient resource allocation, purposeful measurement, and effective performance management and improvement.