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Value chain is a high-level model of how
businesses receive raw materials as input, add value to the raw materials
through various processes, and sell finished products to customers.
A critical pre-requisite for success in digital
economy is the implementation on an integrated value chain that extends
across - and beyond - the enterprise.
State-of-the-art Value Chain for Product
Development:
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Collaboration
on product design and development among all value-chain participants
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Enabled by
Web-based collaborative modeling that allows manipulation
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Measured by
product-development cycle time
State-of-the-art Supply Chain:
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Suppliers
contracts based on mutual benefits rather than straight cost. Supply
chains are not about buying something a bit cheaper, these are strategic
decisions
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Sharing of
benefits achieved through collaboration
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Enabled by
electronic data interchange
(EDI)
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Measured by
lead-time on class-A purchased materials
State-of-the-art Value Chain for
Manufacturing:
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Collaboration
with other chain members and application of
lean techniques to
supplier's operations allows the chain to respond rapidly in a
continuously changing market.
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Enabled by software that
allows visibility to all chain members
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Measured by
cycle-time reductions, on-time deliveries, and productivity
State-of-the-art Value Chain for Selling:
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Transparent
access to real-time market forecast and sales data among value-chain
partners
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Connection of
supply and demand chain by looping customer feedback to R&D stage
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Enabled by
customer-relationship software
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Measured by
market-share and sales growth
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