Download - Virtual Value Chain Ppt
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By:Rinky Sharma (35)
VIRTUAL VALUE CHAIN
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PHYSICAL VS VIRTUAL
Rayport and Sviokla suggest businesses operate in two worlds:• A physical world (marketplace)• A virtual world (marketspace)
The two spaces are “two interacting value-adding processes”
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THE LINKAGE BETWEEN THE TWO CHAINS IS
CRITICAL FOR EFFECTIVE SUPPLY
CHAIN MANAGEMENT.
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THREE STAGES OF VALUE-ADDING
INFORMATIONAL PROCESSES1. Visibility: improve the ability to track
physical operations more effectively. Example: Frito-Lay’s “info revolution” initiative
2. Mirroring capability: substitute virtual activities for physical ones to evolve a parallel chain in the marketSPACE. Example: Ford’s “virtual design team”
3. Create new customer relationships: use info to deliver value to customers in a new way. Example: Zappo’s notification system
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IMPLICATIONS FOR MANAGEMENT
IMPLICATIONS FOR MANAGEMENT
By careful interpretation of the differences and interactions among the value adding events of the physical and virtual worlds, managers can more clearly visualize the strategic issues facing the business.
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THANK YOU!