1nL VALUL CnAIN MCDLL

O 1he vo/ue choin an analyLnal framework Lo daggregaLe a frm nLo Lhe dfferenL
nLerdependenL anLLe LhaL add alue Lo L raw maLeral and brng Lhe frm' produnL
or erne Lo Lhe nuLomer lL wa deeloped by porter ooJ laLer nondered by porLer
and mllar n an nformaLon yLem (lS) nonLexL
O 1he alue nhan nompred of prmary and upporL anLLe rmary anLLe are
Lhoe noled n Lhe phynal nreaLon of Lhe produnL L markeLng and delery Lo
buyer and L upporL and ernng afLer ale

| lnbound logLnexpedLng maLeral Lo Lhe ponL of manufanLure
|| peraLonLranformng npuL nLo fnhed produnL
||| uLbound logLnLorng and dLrbuLng fnhed produnL
|v ,arkeLng and alepromoLon and ale anLLe
v SernepoLaleerne Lo manLan or enhanne produnL alue

SupporL anLLe prode Lhe npuL and nfraLrunLure LhaL allow Lhe prmary anLLe Lo Lake
plane

cotpotote loftosttoctote upporL of enLre alue nhan unh a general managemenL legal
erne fnanne publn relaLon

nomoo tesootces moooqemeot renruLng hrng Lranng deelopmenL
1ecbooloqy Jevelopmeotmprong produnL and manufanLurng prone (8u)
ltocotemeotpurnhang npuL
Lanh anLLy (prmary or enondary) add alue 1here a noL of addng n eery leel of
Lhe nhan lf Lhe LoLal noL of added alue lea Lhan whaL Lhe nonumer pay Lhere profL
1he alue nhan enable a nompany Lo analye where and how L nan add alue Lo produnL or
erne and where L nan redune noL lL nan Lhu help denLfy LraLegn opporLunLe
A already ad Lhe mporLanL nonnepLual framework LhaL nan help denLfy LraLegn
nformaLon yLem nalled Lhe alue nhan lL ew a frm a a ere or nhan" of ban
anLLe LhaL oJJ voloe Lo L produnL and erne and Lhu add a motqlo of voloe Lo Lhe frm
ln Lhe alue nhan nonnepL ome bune anLLe are ptlmoty octlvltles oLher are soppott
octlvltles
lor example offne auLomaLon yLem nan nnreae Lhe produnLLy of offne
nommunnaLon and upporL anLLe (managemenL and admnLraLon erne) employee
kll daLabae yLem nan help lonaLe and agn employee Lo mporLanL poLon and
pro[enL(human reourne managemenL) nompuLeraded daLa nLernhange (Lul) yLem nan
prode onlne LelenommunnaLon lnk Lo a frm' uppler(pronuremenL of reourne)
1he alue nhan_noLe Lhe example of hoe LraLegn nformaLon yLem nan be appled Lo a
frm' ban anLLe for nompeLLe adanLage

SSuu






1he Va|ue Cha|n Mode|

1he va|ue cha|n concept nan help manager dende where and how Lo apply Lhe
LraLegn napablLe of nformaLon yLem Lenhnology lnformaLon yLem LhaL mproe
operaLonal effnenny promoLe nnoaLon and buld LraLegn reourne nan Lhu be appled Lo
Lhe penfn bune anLLe LhaL help a frm gan LraLegn adanLage n Lhe markeLplane
ln Lhe below fgure Lhe enurng dnuon lluLraLe how l1 and genern norporaLe LraLege
nan be ued n non[unnLon wLh Lhe alue nhan framework Lo analyze LraLegn opporLunLe
l1 nan be employed n all leel of Lhe nhan
ltoJoct Jevelopmeot_horLen produnL lfe nynle deelop unue produnL feaLure
Mooofoctotloq_redune manufanLurng noL mproe ualLy nonLrol
ulsttlbotloo_moe nformaLon nLead of produnL redune noL of delery

SupporL
AnL C
lLe
C
rmary
AnL
Le
SlS AuLomaLed ffne SyLem ,gL AdmnLraLe Serne
SlS Lmployee Skll uaLabae Puman 8eourne ,gL
SlS CompuLerAded uegn 1enhnology ueelopmenL
SlS LlenLronn uaLa lnLernhange wLh Suppler ronuremenL of 8eourne
SlS AuLo SlS CompuLer SlS nlne SlS ,arkeL SlS uagnoLn
,aLn Ware Aded ,fg uaLa LnLry Analy Serne
houe

Motketloq_upply orderng Lermnal Lo nuLomer denLLy markeL nnhe






Compane need Lo underLand noL only Lher own alue nhan buL alo Lhoe of key
nuLomer and uppler n order Lo unnoer poLenLal opporLunLe Smlarly underLandng
nompeLLor alue nhan prode nghL on Lhe lkely ourne of nompeLLe aLLank and
defene 1hee alue nhan nompre a alue yLem lluLraLed n below fgure
1he alue yLem Lhe nollenLon of Lhe frm' alue nhan and nddual alue nhan of
uppler buyer and nompeLLor for eanh produnL or erne A nompany nan analye Lhe
alue yLem Lo dnoer way of lowerng noL or enhannng alue of produnL and erne
wLh l1 ne way of dong Lh Lo ue Lhe nrLnal unne fanLor meLhod Lo deLermne Lhe
nrLnal anLLe n Lhe alue yLem for eanh produnL or erne and Lhen explore whaL l1 nan
do for Lhoe CSl




rLoeufh
Suppler nuLomer

ufferenLaLe Low noL Low CoL lonu
rodunL
ueelopmenL
,anufanLur
ng
uLrbuLon ,arkeLng
Suppler u dLrbuLor



S n n






C pprmary
Suppler
CnuLomer nompeLLon
upporL
rmary
upporL
rmary