
In today's rapidly evolving business landscape, innovation has become the key to success. For businesses seeking to stay ahead of the competition, understanding their customers' needs and expectations is paramount. In our journey to unlock innovation, we explore the power of combining customer-centric VSM with quantification to build a compelling business case for change. Additionally, we'll provide valuable tips for conducting a successful VSM customer event, ensuring that your organization fosters a culture of innovation and sustainable growth.
Value Stream Mapping and Customer Insight:
Value Stream Mapping is a lean management technique that visualizes the steps and activities involved in transforming inputs into outputs within a business process. Traditionally, VSM was utilized to streamline internal processes, but by incorporating customer insight, businesses gain a deeper understanding of their customers' pain points and expectations.
How VSM Can Be Modified for Customer-Centric Innovation in B2B:
In the B2B context, customer relationships are crucial, and understanding the value exchange is complex. By modifying VSM to include the customer perspective, businesses open doors to unparalleled innovation and growth opportunities:
Fostering Innovation with Openness and Trust: When customers are actively involved in the VSM process, it fosters a level of openness and trust between the business and its clients. Engaging in open dialogue and idea-sharing creates an environment conducive to innovation and encourages the development of customer-centric solutions.
Building an Environment for Shared Improvement and Success: Collaboration with customers in the VSM process creates a shared commitment to improvement and success in the market. Together, businesses and their clients can identify pain points, align their interests, and co-create innovative products and services that cater precisely to customer needs.
Uncovering Untapped Opportunities: Customer insight often reveals untapped opportunities that may have been overlooked internally. By embracing these fresh perspectives, businesses can unlock new growth avenues and create novel solutions that resonate with the target market.
Gaining a Clear Picture of Customer Value: Integrating the customer perspective into the value stream offers businesses a clear picture of where their customers see value. This invaluable insight helps align internal efforts with customer expectations, leading to enhanced customer satisfaction and loyalty.
Quantification: Building the Business Case for Change:
An often overlooked benefit of using VSM is the structured format that requires quantification. By putting numbers to inefficiencies and bottlenecks, businesses can build a compelling business case for change, justifying the resources allocated to solving identified problems. Decision-makers can see the tangible benefits of investing in innovation, such as increased productivity, reduced costs, and enhanced customer satisfaction.
Real World Example: Dryvit System Inc. held three customer-centric value stream mapping sessions with customers to gain insight on the process to create custom tinted material. An incredible amount of detail was shared regarding the process for sampling, approving and tinting the material. One key observation was that architects and homeowners were requesting large numbers of samples because the existing literature and design tools were inadequate to select color. Color swatches in literature and online were too small and often inaccurate - no one trusted them. In addition to embarking on process improvement projects, Dryvit launched initiatives to improve accuracy and adapt literature and online design tools to be more user friendly, thus reducing the number of samples and improving response times. Thanks to the data gathered during the value stream mapping sessions, they had the baseline data to prove impact over time.

Tips for a Successful VSM Customer Event:
Conducting a VSM customer event requires careful planning and execution to ensure it becomes a powerful instrument for driving innovation:
Gather First-Hand Experience: Ensure attendees have first-hand experience in the areas being explored, including both your customers and their customers. By incorporating end-users, you gain deeper insights into the real pain points experienced by your target audience.
Account for Regional Differences: Consider regional differences that may influence the approach to problems and solutions. Offset these variations by selecting attendees representing diverse markets and geographies to ensure well-rounded insights.
Optimal Attendee List: Limit the attendee list to no more than 20 people, including facilitators. A smaller group encourages engaged discussions and ensures all voices are heard.
Let the Process Guide the Conversation: Stay committed to the VSM process and avoid jumping to solutions prematurely. Encourage participants to thoroughly understand identified problems before seeking solutions.
Leveraging Third-Party Consultants for Facilitation:
To ensure a seamless and transformative VSM journey, consider engaging a third-party consultant to facilitate the process. Their unbiased facilitation and expertise will bring in fresh perspectives, ensuring your teams aren't blinded by past experiences or preconceived notions. Additionally, third-party consultants can efficiently plan and execute the VSM event, allowing your internal teams to focus on their core responsibilities.
In Conclusion:
Customer-centric Value Stream Mapping, when combined with quantification, empowers businesses to unlock innovation and drive sustainable growth in the competitive B2B landscape. By incorporating customer insights into the VSM process, businesses create an environment for collaboration and shared success. The quantification aspect of VSM helps build a compelling business case for change, securing stakeholder buy-in and resources for innovative solutions. As you embark on your VSM journey, remember to follow the tips for a successful customer event and consider leveraging third-party consultants to facilitate the process effectively.
By embracing customer-centric VSM, businesses will find themselves at the forefront of innovation, catering precisely to customer needs and reaping the rewards of success in the dynamic and ever-changing market.
About the Author:

A strategic planning, marketing and business development professional with nearly 20 years of experience, Kristin Gongora works directly with CEOs, executives and entrepreneurs to provide a fresh perspective and deliver solutions to their most challenging problems.
Throughout her career, she has led multiple new product development development and commercialization initiatives for the building materials industry, including Securock®ExoAir® 430, a unique, patented air and water barrier solution.
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