Flevy Management Insights Q&A
What are the emerging trends in Value Stream Mapping for enhancing global competitiveness?
     Joseph Robinson    |    Value Stream Mapping


This article provides a detailed response to: What are the emerging trends in Value Stream Mapping for enhancing global competitiveness? For a comprehensive understanding of Value Stream Mapping, we also include relevant case studies for further reading and links to Value Stream Mapping best practice resources.

TLDR Emerging trends in Value Stream Mapping (VSM) include Digital Transformation, customer-centric approaches, and sustainability integration, driving Operational Excellence, improved Customer Experience, and global market competitiveness.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Digital Transformation in Value Stream Mapping mean?
What does Customer-Centric Value Streams mean?
What does Sustainable Value Stream Mapping Practices mean?


Value Stream Mapping (VSM) has long been a cornerstone in Lean Management, providing organizations with a visual tool to identify waste, improve process efficiencies, and enhance value delivery to customers. As global competition intensifies, the evolution of VSM practices is critical for organizations aiming to maintain and enhance their competitive edge. Emerging trends in VSM are shaping the way organizations approach Operational Excellence, Digital Transformation, and Customer Experience.

Integration of Digital Tools in VSM

The traditional approach to VSM, often characterized by manual processes and paper-based maps, is undergoing a significant transformation with the integration of digital tools. Digital VSM platforms allow for real-time data collection, analysis, and sharing across global teams. This digital shift not only enhances the accuracy of value stream maps but also significantly reduces the time required to create and update them. According to a report by McKinsey, organizations that leverage digital tools in their operational processes can see productivity gains of up to 50%. Digital VSM tools facilitate a more dynamic approach to process improvement, enabling organizations to quickly adapt to changes in the market or supply chain disruptions.

One of the key benefits of digital VSM is the ability to simulate changes to the value stream before they are implemented. This predictive capability allows organizations to assess the potential impact of process changes on throughput, cycle time, and customer delivery without risking actual performance. Furthermore, digital VSM platforms can integrate with other enterprise systems, providing a holistic view of the organization's operations and enhancing decision-making capabilities.

Real-world examples of digital VSM adoption include automotive manufacturers that have integrated VSM software with their production systems to streamline operations and reduce lead times. By doing so, these organizations have not only improved their operational efficiency but have also enhanced their responsiveness to market demands and supply chain volatilities.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Focus on Customer-Centric Value Streams

Another emerging trend in VSM is the shift towards a more customer-centric approach. This involves mapping value streams from the perspective of the customer to better understand and meet their needs and expectations. By focusing on the customer journey, organizations can identify non-value-added activities that do not contribute to customer satisfaction and eliminate them. This approach aligns with the principles of Lean Management, emphasizing the elimination of waste to create more value for customers.

The customer-centric VSM approach requires organizations to gather and analyze customer feedback and data at various touchpoints along the value stream. This data-driven strategy enables organizations to pinpoint areas for improvement in product quality, service delivery, and customer interaction. As a result, organizations can enhance their Customer Experience, leading to higher customer retention rates and increased competitiveness in the global market.

Companies in the e-commerce sector, for example, have applied customer-centric VSM to optimize their order fulfillment processes. By understanding the customer journey from order placement to delivery, these organizations have been able to identify bottlenecks and inefficiencies, such as excessive handling times or delays in shipping, and implement targeted improvements to enhance customer satisfaction and loyalty.

Enhancing Global Competitiveness through Sustainable VSM Practices

The integration of sustainability into VSM is a growing trend among organizations seeking to enhance their global competitiveness. Sustainable VSM practices involve identifying and minimizing environmental waste (such as energy consumption, material waste, and carbon emissions) alongside traditional operational wastes. This holistic approach to waste reduction not only supports Operational Excellence but also aligns with the increasing consumer and regulatory demands for sustainable business practices.

Organizations adopting sustainable VSM practices often engage in cross-functional collaboration to assess the environmental impact of their value streams. This collaborative approach ensures that sustainability is considered at every stage of the value stream, from procurement of raw materials to delivery of the final product. By doing so, organizations can reduce their environmental footprint, improve resource efficiency, and achieve cost savings through reduced waste and energy consumption.

A notable example of sustainable VSM in action is seen in the manufacturing sector, where companies have implemented energy-efficient technologies and processes as a result of their value stream analyses. These initiatives not only contribute to the organizations' sustainability goals but also enhance their competitiveness by reducing costs and meeting the sustainability criteria increasingly demanded by customers and regulatory bodies.

Emerging trends in VSM, including the integration of digital tools, a focus on customer-centric value streams, and the incorporation of sustainability, are enabling organizations to enhance their global competitiveness. By adopting these trends, organizations can achieve Operational Excellence, improve Customer Experience, and meet the growing demands for sustainability, thereby securing their position in the global market.

Best Practices in Value Stream Mapping

Here are best practices relevant to Value Stream Mapping from the Flevy Marketplace. View all our Value Stream Mapping materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Value Stream Mapping

Value Stream Mapping Case Studies

For a practical understanding of Value Stream Mapping, take a look at these case studies.

Value Stream Mapping Initiative for Semiconductor Manufacturer

Scenario: The organization in focus operates within the semiconductor industry, grappling with the complexity of its value stream processes.

Read Full Case Study

Value Stream Mapping Optimization for a High-Growth Tech Firm

Scenario: A rapidly expanding technology firm is grappling with escalating operational costs and process inefficiencies due to its aggressive growth.

Read Full Case Study

Value Stream Mapping Initiative for Biotech Firm in Life Sciences

Scenario: A biotech firm specializing in pharmaceuticals is facing challenges in its drug development pipeline due to inefficient processes and prolonged time-to-market.

Read Full Case Study

Value Stream Mapping Initiative for Wellness Industry Leader

Scenario: The organization is a market leader in the wellness industry, grappling with the challenge of maintaining operational efficiency while rapidly scaling up its service offerings.

Read Full Case Study

Value Stream Mapping for a Global Pharmaceutical Company

Scenario: A global pharmaceutical firm is grappling with extended lead times and inefficiencies in its product development process.

Read Full Case Study

Value Stream Mapping Optimization for Global Pharmaceutical Manufacturer

Scenario: An international pharmaceutical manufacturer has been facing challenges related to its value stream mapping.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar HernĂ¡n Montes Parra, CEO at Quantum SFE
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

    – Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

    – Michael Duff, Managing Director at Change Strategy (UK)
  •  
    "One of the great discoveries that I have made for my business is the Flevy library of training materials.

    As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

    – Ed Kemmerling, Senior Lean Transformation Expert at PMG



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.