Upload
manuj-gaur
View
218
Download
0
Embed Size (px)
Citation preview
8/18/2019 Ch-2 Value Chain
1/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
Chapter-2
The Value Chain
8/18/2019 Ch-2 Value Chain
2/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
Value Chains
The production of goods and services is the r
efforts of many organisations – a comple
contracts and co-operation known as the suor the value system.
8/18/2019 Ch-2 Value Chain
3/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
upply Chain
Component
supply
wholesalemanufactureub-assembly
supply
Fig: Manufacturing Value Chain
!e.g. wheels"
seats" etc.#
!e.g. import
agent#!e.g. engine"
gearbox" etc.#
8/18/2019 Ch-2 Value Chain
4/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
Manufacturing Inputs:
Components !e.g. wheels" seats" etc.#
Sub-assemblies !e.g. engine" gearbox" etc.#
Sales and Distribution:
Wholesale !e.g. import agent#
Retail !e.g. local main dealer#
The products sold in shops and purchased for use in
the result of a complex web of relationships betwee
component suppliers" wholesalers" retailers and the logi
that links them together.
upply Chain !cont$#
8/18/2019 Ch-2 Value Chain
5/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
The web of trade relationships is referred to as the s
the value chain.
%ach trade exchange in the supply chain is a transa
cost without adding intrinsic value.
%-commerce is the application of information and
technology to the value chain to enable the accom
business goal.
The business goal can be to reduce costs" improve se
into a new market.
upply Chain !cont$#
8/18/2019 Ch-2 Value Chain
6/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
&orter's Value Chain (ode
Fig: Porter’s Generic Value Chain
Inbound
Logistics
Operations Outbound
Logistics
Marketing
& Sales
Servi
Procurement
Human Resource Management
Technology evelopment
!irm In"rastructuresu ort activities
rimar activities
8/18/2019 Ch-2 Value Chain
7/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
&orter's model was essentially concerned with the initia
company.
The three (basic primary activities of a product proce
Inbound !ogistics:
• *andling goods that are bought into the compa
and making them available to operations as re+uir
"perations:
• The production processes" in many cases a serie
that can be represented on a detailed value chain
"utbound !ogistics:
• Taking the products of the company" storing them
distributing them to the consumer in a timely man
&orter's Value Chain (odel !co
8/18/2019 Ch-2 Value Chain
8/20
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
er
c
e
electroniccommerce
strategytechnologies
andapplications
#o these basic primary activities $orter adds
primary activities:
Mar&eting and Sales:
• ,inding out the re+uirements of potential c
letting them know of the products and service
offered.
Service:
• ny re+uirement for installation or advice befor
the after-sales service once the transaction is c
&orter's Value Chain (odel !co
8/18/2019 Ch-2 Value Chain
9/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
#o support these primary functions' there %ill be a compa
that performs a number of support activities:
$rocurement:
•
The function of finding suppliers of the materials re+uireoperations of the organisation.
• &rocurement is responsible for negotiating +uality supplie
price and with reliable delivery.
#echnology Development:
• The organisation needs to update its production processe
manage innovation to ensure that its products and its ove
and services remain competitive. uman Resource Management:
• The recruitment" training and personnel management o
work for the organisation.
)irm Infrastructure:
• The overall management of the company includi
accountancy.
&orter's Value Chain (odel !co
8/18/2019 Ch-2 Value Chain
10/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
&orter's Value Chain (odel !co
Fig: Value Chain Linkages
OutboundLogistics
InboundLogistics
Operations OutboundLogistics
8/18/2019 Ch-2 Value Chain
11/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
The efficiency of the linkages may be enhanced
information and communication technologies!CT's#.
nternal linkages can be coordinated using
technologies.
The internal systems need to interface with suppliers
The production planning and control process can info
logistics system of the +uantity of components/stock r
The marketing and sales system can be interfaced w
and outbound logistics to improve the +uality of servic
&orter's Value Chain (odel !co
8/18/2019 Ch-2 Value Chain
12/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
IC#*s can also be used in other value chain activi
applications are:
*uman 0esource (anagement using electronic med
vacancies in the organi1ation.
&rocurement using online searches to identify appro
of supply.
(arketing using online advertising or portable sales t
ervicing providing online assistance and/ or fault dia
&orter's Value Chain (odel !co
t i ti l V l Ch
8/18/2019 Ch-2 Value Chain
13/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
nter rganisational Value Ch
Fig: Porter’s Value System (Single Fir
!irm#alue
$hains
Supplier#alue
$hains
$hannel#alue
$hains
%u#
$h
t i ti l V l Ch i !
8/18/2019 Ch-2 Value Chain
14/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
The overall competitive advantage of an organi1at
dependent on the +uality and efficiency of the com
+uality of its products but also upon that of its supp
wholesalers and retails it may use.
The analysis of the overall supply chain is called the v
The term introduced by the &orter !4567# in the book
,dvantage: Creating and Sustaining Superior $er
Value chains differ considerably across trade sectors
different organi1ation within a trade sectors.
nter rganisational Value Chain !
t i ti l V l Ch i !
8/18/2019 Ch-2 Value Chain
15/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
nter rganisational Value Chain !
Fig: Value System for Automoile Asse
InternalSupplies
#ehicle&ssembler
$omponent
Suppliersealer
'et(ork$onsu
t i ti l V l Ch i !
8/18/2019 Ch-2 Value Chain
16/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
nter rganisational Value Chain !
Inbound !ogistics:
8arge number of suppliers
Vast number of components
$rocess:
9ust-in-time !9T# manufacture
"utbound !ogistics:
8imited number of (ain :ealers
utomotive ssembly Value yst
t i ti l V l Ch i !
8/18/2019 Ch-2 Value Chain
17/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
nter rganisational Value Chain !
Fig: Value System of the Su!ermarke
Regional
)hse
uper-market
!oodProcessors
$onsu
nter rganisational Val e Chain !
8/18/2019 Ch-2 Value Chain
18/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
nter rganisational Value Chain !
Inbound !ogistics:
8arge number of suppliers
Vast number of products
$rocess:
0etail
"utbound !ogistics:
Vast number of Consumers
,ood upermarkets Value ys
nter rganisational Value Chain !
8/18/2019 Ch-2 Value Chain
19/20
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
om
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
nter rganisational Value Chain !
Fig: Value System for "nsurance
Insurance$ompany
&gents
$onsume
Insurance%roker
nter rganisational Value Chain !
8/18/2019 Ch-2 Value Chain
20/20
e
c
o
m
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
e
c
o
m
m
e
r
c
e
electroniccommerce
strategytechnologies
andapplications
Inbound !ogistics:
;o significant suppliers !financial / re-insurance p
$rocess:
dministrative
"utbound !ogistics: ales through agents
ales through brokers
:irect sales
nter rganisational Value Chain !
nsurance Value ystem