Components of Commercial Value Chain
February 12, 2025
Project Management is both an Art and a Science Project Management is both an art and a science. It is a science because project managers need to estimate budgets, draw up schedules, and manage costs and earn profits. It is an art because they have to ensure that the team gets along well and the […]
The Project lead is the second most important person in the entire Six Sigma project exercise. The Project lead reports to the Project Champion. The Project Lead is also selected by the Project Champion to execute a given Six Sigma project. The role and responsibility of a Six Sigma project lead have been listed below: […]
A data collection plan is a detailed document. It describes the exact steps as well as the sequence that needs to be followed in gathering the data for the given Six Sigma project. This document is important because the people that design the data gathering plan are not the same people that will actually be […]
The crash in the value of the Turkish lira is not really a surprise. President Erdogan has been following loose monetary policies despite receiving warnings from several monetary experts. In a way, this economic turmoil has been self-inflicted. Turkey has increased its money supply to about 300% in the past seven years! The rationale behind […]
What Will the New Normal look Like for Businesses and is it All Chaos and Confusion? As the shuttered economies worldwide prepare to emerge from the lockdowns, the New Normal or the State of Affairs is coming into sharper focus. With uncertainty looming large as most countries are still reporting new cases and there is […]
In today’s digital age information technology and information systems play an important role in success of organization. Information technology has challenged the way the business gets conducted. A company with superior product and service content become market leaders. There is a constant urge for the companies to provide a better and competitive content.
Organizations invest in research and development for superior content production, or they acquire/merge with companies. The purpose of acquisition is to either expand current product offering or add content as to provide end to end solutions.
Organization strategy can be devised using Porter’s Five Force model. Organization’s strategy should be to increase customer base and provide customized solution. Service also plays an important role in organization strategy. Service is the key factor in maintaining good customer relationship. Organization needs to devise a strategy which is convergence of technology, brand marketing, product innovation and world-class service.
A physical value chain consist procurement of raw materials, operations, delivery, sales and marketing and service. Information technology has changed the way we look at the value chain. Information technology has introduced concept of virtual value chain.
The components of a virtual value chain are as follows:
The concept of a virtual value chain was devised looking at current internet penetration. It provides addition to existing value chain. Information technology helps in holistic view of physical value and making it efficient and effective.
Today’s information systems are capable of capturing information from every part of the value chain. This information is utilized to optimize performance at each stage. However, this information can also be utilized to improve customer experience at each stage. This enhanced experience can be through new product and services, thus generating more revenue to the company.
Your email address will not be published. Required fields are marked *