What is a good Value Stream definition?
A value stream definition encompasses the activities required to move from a business hypothesis to a digitally enabled solution that delivers customer value.
Understanding value streams is critical for organisations aiming to optimise their processes and drive meaningful outcomes.
We examine value stream definitions with BMK Lakshminarayanan from DevOps New Zealand.
BMK is based out of Wellington, New Zealand working as Transformation Architect and Independent Consultant for Section Six. He also worked for 15 years with Bank of New Zealand. As part of that work he connected and became a central part of the DevOps community.
Understanding Value and Value Streams
In today’s fast-paced digital landscape, organisations must ensure that their technology investments yield tangible benefits. Value streams help bridge the gap between technical efforts and business outcomes by aligning software development and IT operations with customer needs and business goals.
Value, in this context, is about what the customer gains from a service or product. Organisations need to evaluate:
The value customers receive from their time spent using a product.
The value they get in return for their financial investment.
Their overall satisfaction with the service or product.
On the other hand, business value revolves around the impact of software and technology investments. Key considerations include:
The revenue generated from software solutions.
The return on investment (ROI) from IT expenditures.
Cost savings achieved through technological advancements.
Engineering Excellence and Business Alignment
For organisations to fully leverage technology, engineering teams must align their efforts with business objectives. Engineers often enjoy coding for the sake of coding, but the true measure of success lies in understanding the ‘why’ behind their work. Clarity of purpose ensures that development efforts contribute to overarching business goals rather than functioning in isolation.
An essential aspect of this alignment is value engineering, which ensures that IT investments drive tangible business outcomes. Organisations must assess whether their expenditures are yielding proportional returns, optimising both customer and business value.
The Importance of Purpose in Engineering Culture
Developers thrive when they connect with a company’s mission. A strong sense of purpose enhances motivation and encourages engineers to think beyond their immediate tasks. Companies that foster such an environment experience better engagement, innovation, and efficiency.
Psychological safety also plays a vital role in engineering culture. When teams feel empowered to speak up and share insights, they can proactively address issues and improve processes. Organisations that fail to provide this supportive atmosphere risk losing top talent or stifling creativity.
Cloud Transformations and Their Challenges
Many organisations have embraced cloud computing, yet some struggle to realise its full potential. A successful transition to the cloud requires more than just technical implementation—it demands a fundamental shift in business processes and financial structures.
One of the biggest challenges is the shift from CapEx (capital expenditures) to OpEx (operational expenditures). Traditional IT investments often involve significant upfront costs, whereas cloud models operate on a pay-as-you-go basis. Organisations accustomed to the old financial structure may find it difficult to adjust.
Additionally, bureaucratic processes can hinder cloud adoption. Companies that simply overlay old infrastructure management practices onto cloud environments often fail to realise the efficiency gains cloud computing offers. To fully benefit, organisations must rethink governance, automate provisioning, and embrace modern cloud-native architectures.
Optimising Cloud Investments
Successful cloud transformations require a combination of technical expertise, cultural shifts, and financial literacy. Organisations that invest in upskilling their teams and refining their cloud strategies can unlock significant cost savings and operational efficiencies.
By eliminating unnecessary layers of bureaucracy and empowering engineers with the right tools and frameworks, companies can optimise their cloud investments. Well-structured cloud governance, combined with cost-conscious decision-making, ensures that businesses maximise value while minimising waste.
Conclusion
A well-defined value stream helps organisations align their technology investments with customer and business needs. By fostering engineering excellence, promoting psychological safety, and refining cloud strategies, businesses can ensure that their digital transformations deliver meaningful value. The key lies in maintaining a customer-centric mindset while optimising internal processes for maximum efficiency and impact.
Serverless Craic from The Serverless Edge
Check out our book, The Value Flywheel Effect
Follow us on X @ServerlessEdge
Follow us on LinkedIn