Chapter 6: Value Configurations and the Internet

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Chapter 6 Value Configurations and the Internet

• Dr. Tom Housel
• Professor
• Information Science

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Overview

• Value Chain
• Value Shop
• Value Network

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Value chain
Firm infrastructure
Human resource management
Support activities
Technology development
Procurement
Inbound logistics
Operations
Outbound logistics
Marketing Sales
Service
Primary activities
Procurement
RD
Operations
Marketing
Distribution
Service
Purchasing Vendor relations Inbound
logistics Inventory holding Materials handling
Source Sophistication Patents Product
tech. Process tech. Product design
Integration Raw materials Capacity Location Procur
ement Parts production Assembly
Prices Advertising Promotion Sales
force Packaging Brand
Channels Integration Inventory Warehousing Transpo
rt
Warranty Speed Captive/ independent
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Supply Chain
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The Virtual Corporation and Business Chains
Enterprise Integration
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Value chain
Firm infrastructure activities
Support activities
Research, development and design
Human resource management
Dealer support and customer service
Purchasing, inventory holding, materials handling
Manufacturing
Outbound logistics
Marketing Sales
Primary activities
Purchasing Vendor relations Inbound
logistics Inventory holding Materials handling
Integration Raw materials Capacity Location Parts
production Assembly
Prices Advertising Promotion Sales
force Packaging Brand
Channels Inventory Warehousing Transport
Warranty Speed Captive/ independent
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Value shop
Problem Finding Collect patient history
Patient examination Diagnostic tests Maintain
patient data
Problem Solving Generate treatment plans
Evaluate treatment plans
Choice Choice of treatment plan
Control/Evaluation Monitor patient history
Maintain patient data
Execution Treatment
Value shop of a general practitioner
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Value Network
Firm infrastructure
Reconfigure branch office infrastructure
Expand communication network Set standards
Design new services Program service routine
Network promotion Contract management Sell
services Evaluate risk Contract Monitor
contracts Terminate contracts
Service provisioning Deposit Withdraw
Transfer funds Maintain account balances
Calculate interest
Infrastructure operation Operate branch
offices Operate ATMs Operate IT systems
Maintain liquidity Link with correspondent
banks/central bank
Bank example
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Britannica
Customer Consumer
Authors
Publishers
Wholesalers
Retailers
Microsoft
Customer Consumer
Author and Publisher
The Internet offers

• Mutlimedia capabilities (motion)
• Searching ability
• Links to the rest of the world
• Limitless capacity
• Frequent and instantaneously available updates
• Saves space and weight

• Customers go to Microsoft
• No printers, No door-to-door salespeople
• More fun for kids
• Available to anyone anywhere anytime
• Customers can form communities

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Summary

• Match value configuration model with strategic
  focus meeting customers wants and needs
• E-Bus infrastructure applies to all three models
• Model selection depends on maturity of
  organization
• DoD organizations can benefit from reviewing
  value configurations and level of maturity of its
  organizations core processes
• Lessons Learned from last session Operational
  excellence is enabled by E-Bus technology and
  drives financial performance, valued outputs in
  DoD core processes. Knowing the organization,
  technology, or products place in the life cycle
  is critical to investment decision making and
  exploiting opportunities.