#176: Transaction-based costing and Value Stream Teams

Better ROI from Software Development

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1y ago 17:55

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In this episode I continue the discussion on transaction-based costing by looking at the relationship with Value Stream Teams.

I start by defining value stream teams - cross-functional groups that work towards delivering value from customer request to service delivery. I explore how they fit into the software development landscape, leveraging principles of lean manufacturing for better efficiency.

I recap the transactional cost mindset, comparing it with the traditional CapEx/ OpEx model - highlighting the benefits of a transaction-based approach for improving visibility and accountability for better decision making.

I then discuss the importance of breaking down organizational silos - examining the significance of focusing on the end-to-end flow of value in software development, emphasizing how transaction-based costing helps optimize this flow for better financial outcomes.

Lastly, I highlight how this approach can enhance agility and speed up time to market.

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