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VCE: Value Chain Economy defined for all stakeholder groups
see >> VCE > Value Chain Economies are virtual economic communities
Zendesk on value chain
What is a value chain?
The value chain is a business model used to examine all company activities involved in taking a product or service from idea to sellable item.
Ideally, companies can use the value chain model to strengthen their point of view and widen their profit margin—more efficiency and fewer costs.
Generally speaking, there are two ways to improve the “value” in your value chain:
- Increase the social value of your company and products via product quality and brand credibility so consumers will purchase more.
- Decrease the costs of your product and production to encourage customers to purchase more and widen profit margins.
You can also use value chain analysis to help boost profit by searching for improvements in specific activities within the sales and production lines.
By either increasing value or decreasing costs based on your company’s value chain, you create a competitive advantage in the market and hone your sales strategies.
Value chain benefits
The value chain framework enables your company to understand and analyze where cost efficiency is good or poor within the organization. When you look at your company’s value chain analytically, you can:
- Back-up decisions regarding various business activities
- Pinpoint areas of ineffectiveness and correct them
- Understand the links and responsibilities between different aspects of your business
- Optimize efficiency while lowering expenses
- Create a cost advantage over competitors
- See exactly where your business is succeeding
It might seem like a lot of work to review every single company activity to determine your competitive edge, but that insight makes a difference. Just as KPIs and reporting inform your sales operations and strategies, a comprehensive value chain analysis informs decisions across your entire business.
Porter’s VCA components
The VCA chart is broken into two sections: primary activities and secondary (or support) activities. Primary activities focus on the manufacturing of goods and services, while secondary activities back up primary activities:
Primary activities
- Inbound logistics: Availability of raw materials, warehousing, and distribution (essentially, anything in your supply chain)
- Operations: Creating products from raw materials
- Outbound logistics: Delivery of products to customers, including warehouse, transportation, and distribution
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- Infrastructure: Any administrative, finance, management, planning, or legal operations needed to support primary activities
- Technology development: Any technological improvements made to existing machinery, hardware, or software in the name of supporting primary activities
- Human resource management: The process of hiring and managing workers
- Procurement: Purchases related to buying raw materials or any fixed assets (for example, vendor fees and selection)
Porter’s model showcases that the key to a successful value chain analysis is identifying which processes could be run more efficiently and implementing fixes in a timely fashion.
Value chain model: How to create one
If you’re looking to boost your company’s efficiency and add value to your products or services, consider creating a value chain model. Building a value chain model for your company is a repeated, four-step process:
- Identify the sub-activities of each of your primary activities.
- Identify the sub-activities of each of your secondary activities.
- Find links between all activities.
- Discover opportunities to increase value or decrease costs.
see VCE model
s Blockchain Opportunity Assessment - BOA#BOA-KeyQuestionsforVCE%3AValueChainEconomiesVCE definitions provide the FULL context for any business solution
Without a VCE, key stakeholder groups and perspectives may be missed at the start of project SDP that may add significant risk to solution delivery
Value Chains
VCE > Value Chain Economies are virtual economic communities#ValueChainConcepts%26Mapping
Value Chain Economies
VCE > Value Chain Economies are virtual economic communities#VCEConcepts%26Mapping
Barry Wright - 7 Cs for Performance Success
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The GAPS process helps build consensus on goals and responsibilties
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Technology Business Management (TBM) is a discipline that improves business outcomes by giving organizations a consistent way to translate technology investments to business value.
Finance and technology leaders need comprehensive visibility, planning, billing, benchmarking, and optimization of their technology investments regardless of technology stack, delivery, or development model.
Impactful outcomes from technology investments because technology is driven by business needs and solutions
TBM Taxonomy
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Summary View of TBM Taxonomy
TBM Taxonomy to help take the guesswork out of naming and organizing cost structures. The TBM Taxonomy translates from a financial view to a technology view to a business-facing view with terminology that makes sense to each audience.
TBM Towers View
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