Showing papers on "Value chain published in 2004"

Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet

Abstract: Function-oriented business models or product–service systems (PSSs) are often seen as an excellent means for achieving ‘factor 4’. SusProNet, an EU network on PSSs, showed a more complicated reality. At least eight different types of PSS exist, with quite diverging economic and environmental characteristics. The economic potential of each type was evaluated in terms of (i) tangible and intangible value for the user, (ii) tangible costs and risk premium for the provider, (iii) capital/investment needs and (iv) issues such as the providers' position in the value chain and client relations. The environmental potential was evaluated by checking the relevance of certain impact reduction mechanisms (e.g. more intensive use of capital goods, inherent incentives for sustainable user and provider behaviour etc.). Most PSS types will result in marginal environmental improvements at best. The exception is the PSS type known as functional results, but here liability and risk premium issues, amongst others, need a solution. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.

An empirical investigation of net-enabled business value

Abstract: Many traditional organizations have undertaken major initiatives to leverage the Internet to transform how they coordinate value activities with customers, suppliers, and other business partners with the objective of improving firm performance. This paper addresses processes through which business value is created through such Internet-enabled value chain activities. Relying on the resource-based view of the firm, we propose a model positing that a firm's abilities to coordinate and exploit firm resources (processes, information technology, and readiness of customers and suppliers) create online informational capabilities (a higher order resource) which then leads to improved operational and financial performance. The outcome of a firm's online informational capabilities is reflected in superior operational performance through customer and supplier-side digitization efforts, which reflect the extent to which transactions and external interactions occur electronically. We also hypothesize that increased customer and supplier-side digitization leads to better financial performance. The model is tested with data from over 1,000 firms in the manufacturing, retail, and wholesale sectors. The analysis suggests that while most firms are lagging in their supplier-side initiatives relative to the customer-side, supplier-side digitization has a strong positive impact on customer-side digitization, which, in turn, leads to better financial performance. Further, both customer and supplier readiness to engage in digital interactions are shown to be as important as a firm's internal digitization initiatives, implying that a firm's transformation-related decisions should include its customers' and suppliers' resources and incentives.

Understanding supply chain management: Critical research and a theoretical framework

Abstract: Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigat...

The Future of Competition: Co-Creating Unique Value with Customers

Abstract: THE FUTURE OF COMPETITION: CO-CREATING UNIQUE VALUE WITH CUSTOMERSC.K. Prahalad & Venkat RamaswamyThe authors - C.K. Prahlad and Venkat Ramaswamy, are known for their non-traditional approach and that has made possible to bring out this path breaking book. Unlearning age old management practices and understanding the changes that is sweeping the business world and giving a framework to the still evolving concept of co-creation of value where customer is at the centre stage is indeed a tough task. And authors have accomplished that with aplomb.Our industrial system is generating more goods and services than before but customer satisfaction remains low in spite of having overwhelming choices, profit level of companies is shrinking though many more decision making tools are at its disposal. What is going wrong and how to set this right? Companies are grappling with these issues and trying to fathom these problems. With the emerging technologies, customers are well informed, well connected with their peer groups and very active in their domain. Now customers have started playing dominant role in the value chain through co-creation of experience which enhances the value.The book can be divided into three distinct parts covering twelve chapters, highlighting future of competition and the role to be played by consumers, markets and companies. First six chapters develop the framework of consumers' role in the changing scenario. Early chapters give a brief account of the change that is taking place; how autonomy of companies in creating product value and satisfying consumers, is slowly and surely giving way to consumer-centric approach? How consumer and firm interact and co-create value, and how the cocreation experience becomes the very basis of value? The authors develop the co-creation experience framework in the subsequent chapters very cogently and lucidly. It goes like this, the co-creation experience depends highly on individuals. Each person's uniqueness affects co-creation process as well as co-creation experience. Dialogue, access, risk assessment and transparency (DART) are the building blocks of value co-creation process and companies use this to engage customer effectively as collaborator. In the domain of competition, co-creation experience plays the most important role in decision making. This process further gains momentum in the later chapters of first part as co-creation experience is shaped by dimensions such as choice of channels, options made available, quality of transaction and price-experience relationship. This experience will vary from consumer to consumer due to the different traits of individual. To ensure that the transaction between the consumer and the firm produces positive co-creation experience, the presence of an appropriate environment is imperative, authors develop this concept very carefully. This environments accommodate the heterogeneity of consumer and facilitate a variety of co-creation experience. In the present day world, emerging technology acts as an experience enabler, facilitating innovation in experience environment. With intense competition, sky high consumer expectation; consumer looks for uniqueness which is possible only through personalized co-creation experience. …

Understanding and Managing the Services Supply Chain

Abstract: SUMMARY Services have become increasingly important as the driving force in the U.S. economy. However, there has been little research to date on services supply chains. It is believed that service businesses can benefit by applying some best practices from manufacturing to their processes. However, the inherent differences in services create a need for supply chain management tools specific to the services sector. This article documents the growing importance of the services sector and of services purchasing. Next, it develops a supply chain framework appropriate for a services supply chain by comparing and contrasting the applicability of three product-based manufacturing models: Global Supply Chain Forum Framework, SCOR and Hewlett-Packard's Supply Chain Management Model. Finally, this research describes the challenges for procurement professionals managing purchases for a services supply chain and provides suggestions for use of supply chain management theory, and practices for improvement.

A review and analysis of supply chain operations reference (SCOR) model

Abstract: Research on supply chain management can be broadly classified into three categories, namely, operational, design, and strategic. While many analytical and numerical models have been proposed to handle operational and design issues, formal models for strategic planning are scarce. The supply chain operations reference (SCOR) model, developed by the Supply Chain Council, is a strategic planning tool that allows senior managers to simplify the complexity of supply chain management. It is firmly rooted in industrial practices and is poised to become an industrial standard that enables next‐generation supply chain management. This paper gives a brief introduction to the SCOR model, analyzes its strength and weakness, and discusses how it can be used to assist managers for strategic decision making.

Methodology to mitigate supplier risk in an aerospace supply chain

Abstract: Supply chain design is frequently performed from the perspective of a single supplier‐customer relationship. However, as a supplier provides value to different supply chains, it becomes increasingly difficult to optimize each supply chain. Each supply chain has different requirements, procedures, and formats. A member may have requirements placed upon them by one member that contradicts another member. The competitive success of a supplier depends on its ability to participate in different supply chains. This, in turn, affects the competitiveness of each of the other supply chains. This paper presents a generic prescriptive methodology for mitigating risks in an aerospace supply chain and proposes five activities. The methodology provides a mechanism to minimize conflicting objectives. A hypothetical case study is then presented on how the methodology can be applied.

The practice of supply chain management : where theory and application converge

Abstract: Introduction. Core Concepts and Practices. 1. Principles for the Strategic Design of Supply Chains T.P. Harrison. 2. Tactical Planning for Reinventing the Supply Chain D. Simchi-Levi, E. Simchi-Levi, M. Watson. 3. Inventory and the Supply Chain J.J. Neale, B.T. Tomlin, S.P. Willems. 4. Supply Chain Performance Metrics W.H. Hausman. Emerging Supply Chain Practices. 5. Sourcing Strategy and Supplier Relationships: Alliances vs. eProcurement D.F. Pyke, M.E. Johnson. 6. Supply-Chain Coordination: How Manufacturers and Retailers Leverage Information Flows to Generate Value S. Cohen Kulp, E. Ofek, J. Whitaker. 7. Supply Chain Net: The Impact of Web-based Technologies on Supply Chain Management E. Yucesan, L.N. Van Wassenhove. 8. e-Business and Supply Chain Integration Hau L. Lee, Seungjin Whang. 9. Managing Product Variety through Postponement: Concept and Applications S. Venkatesh, J.M. Swaminathan. 10. Creating and Leveraging Options in the High Technology Supply Chain C. Billington, B. Johnson. 11. Managing Supply Chains with Differentiated Service Requirements - Models and Applications M.A. Cohen, V. Deshpande, Yunzeng Wang. Supply Chain in Action. 12. Data-Rich Supply Chain Management: The Case of Seven Eleven Japan Seungjin Whang. 13. Lucent Technologies: Achieving the Impossible By Using Provisioning and Postponement D.W. Hoyt, E. Lopez-Tello. 14. Measuring the Benefits Of Product Standardization and Postponement of Configuration in a Supply Chain T. Davila, M. Wouters.15. Technology for Transportation Bidding at The Home Depot W. Elmaghraby, P. Keskinocak. 16. The Benefits of Business-to-Business Applications for Fabless Semiconductor Companies B. Peleg. 17. Supply Chain Management at a Chip Tester Manufacturer S. Gavirneni. 18. Aerospace Supply Chain Dynamics T. Bilczo, L. Bugbee, J. Fitzhugh, D. Gilbert, S. Halladin, J. Rubert, B. Budiman. 19. Agent Models of Supply Network Dynamics: Analysis, Design, and Operation S. Brueckner, H. Baumgaertel, V. Parunak, R. Vanderbok, J. Wilke. Index.

Product Modularity and the Design of Closed-Loop Supply Chains

Abstract: While companies spend much effort on the design, analysis, and management of their forward supply chains, they need to pay the same attention to their reverse supply chain. Pioneering firms have learned that making product returns profitable relies on good design of the reverse chains' business processes, including integration with the forward chain. Product modularity offers new possibilities for supply chain design. Optimal closed-loop supply chain management requires three things. First, the type of return needs to be matched with the appropriate closed-loop supply chain. Second, through modular reuse, optimal value can be regained in closed-loop applications. Third, the value of reuse information may in some cases be higher than the value of the returns themselves.

What Is the Right Supply Chain For Your Products

Abstract: In order to have a successful supply chain, in terms of total supply chain costs and service performance to the customer, companies need to match the type of products they are selling with the type of distribution channels delivering their products. To test this hypothesis a product supply characterization (PSC) model was developed and validated on the European operations of a US$15 billion case study company. The application of the PSC model to the case study company reveals significant value in matching specific product clusters with appropriate supply chain designs and that any mismatch represents supply chain under performance.

The influencing factors of commitment and business integration on supply chain management

Abstract: The main purpose of this study focuses on how to integrate the supply chain management business process. There were a total of 600 questionnaires issued in this study with 134 valid questionnaires being retrieved. The study concludes the following results: the level of idiosyncratic investments to supply chain partners, the degree of dependence between supply chain partners, and the level of product salability of manufacturer would enhance commitment and, consequently, the integration of the SCM business process. The degree of trust, power, continuity, and communication between supply chain partners would enhance commitment and, consequently, the integration of the SCM business process. The level of affective commitment, continuance commitment, and normative commitment of supply chain partners would be helpful in the integration of the SCM business process.

Demand and supply chains:the value catalyst

Abstract: The notion that firms have demand chains as well as supply chains is one that is gaining currency. It is suggested that taking a broad perspective of the demand chain as all those processes in the firm which interact with and translate customer requirements throws a new light on how a firm's value chain operates as a whole. Looking at some retail examples, including McDonald's in particular, it is argued that managing the interaction of a firm's supply chain and its demand chain is critical to the effectiveness of that entities business model. This interaction involves a fusion of processes in what is termed a Value Catalyst. This catalysis effect involves interaction costs and tension as processes continually bundle and unbundled. It is argued that while the deliberate creation and purposeful management of tension may seem odd, it in fact accords with day‐to‐day management reality and is a potential source of dynamism within the firm.

In the footsteps of the Silicon Valley? Indian and Irish software in the international division of labour

Abstract: This paper analyses the development of software in India and Ireland. The development patterns of the software industry in Ireland and India clearly show both the advantages and disadvantages of being a follower. The most obvious advantage is the ability to sustain growth without a broad based set of technical capabilities, at least initially. With the leaders creating and defining markets, and possibly even the business models, and the policy and technical infrastructure required, many uncertainties are greatly reduced. Moreover, in many instances, multinationals from the leading countries can catalyse growth and may even, as in Ireland, account for a substantial part of the initial growth. On the other hand, relatively narrow sources of competitive advantage imply that the firms in the follower industries tend to be similar in capabilities, with competition among them transferring the bulk of the benefits to customers overseas. Sophisticated and well established competitors located in the leading clusters stand in the way of followers moving up the value chain, leaving innovative firms to search for new niches, and ways to link to lead users. Moreover, clusters in the followers lack the thick vertical and horizontal links, that are important for knowledge spillovers, innovation and growth. However, our analysis, which s draws on the evidence collected in India and Ireland through two surveys of domestic firms and foreign-owned firms, also suggests that early success, narrowly based though it may be, can lay a foundation for future growth that is based more on innovation.

The demand chain as an integral component of the value chain

Abstract: The term “value chain” encompasses a variety of ideas and concepts. This paper identifies two major themes: a “macro” perspective of how markets operate and, at the other extreme, a process‐driven “micro” view of the individual firm itself. Focusing on the latter in particular, it seems that corporate emphasis is increasingly efficiency based with the prime objective the reduction of costs. The recent difficulties experienced by McDonald's, Sainsbury and Marks & Spencer may be due in part to a single‐minded focus on supply‐chain management. Instead it is argued that a firm is best placed to create value and exploit market opportunities when there is an effective combination of supply‐chain capabilities and demand‐chain effectiveness to maximise the organisation's overall value chain. These issues are explored using practical examples from the retail and fast food industries. Questions whether traditional views of marketing are broad enough or whether, just as the logistics manager reinvented himself as the supply‐chain manager and the new corporate hero, the marketing professional needs to reinvent himself as the demand‐chain manager.

Use of Internet in supply chain management: a study of Indian companies

Abstract: The advent of the Internet and electronic communication has enabled companies to be more responsive to their customers. However, the uses of the same technological advancements in business‐to‐business supply chain management are changing the marketplace itself. Successful supply chain management requires a change from managing individual functions to integrating activities into the key supply chain process. The advantages are far more than the efforts involved in accessing the final product, a seamless chain that operates fluidly and benefits the entire value chain by speeding up communication between customers and their suppliers, improving service quality, and reducing costs. In this article, the author discusses how the Internet is being used in the management of various areas of supply chain by Indian companies.

Industry Change through Vertical Dis-integration: How and Why Markets Emerged in Mortgage Banking

Abstract: By providing a theoretical framework that explains how and why vertical dis-integration happens, this inductive longitudinal analysis of the mortgage banking value chain sheds light on one of the least studied aspects of industry evolution. I find that gains from specialization set off a process of intra-organizational partitioning, which leads to coordination simplification along parts of the value chain; and gains from trade foster inter-firm co-specialization, which leads to information standardization. As a result of standardized information and simplified coordination, new intermediate markets emerge, even in the presence of transactional risks. This breaks up the value chain, allowing new types of industry participants to emerge, thus, changing the competitive landscape.

Web technology and supply chain management

Abstract: Supply chain management is critical since firms always confront the competition on their supply chain efficiency. This article discusses the trend in supply chain management by examining Web technologies that transform and streamline the supply chain management.

Environmental upgrading of Third World enterprises through linkages to transnational corporations. Theoretical perspectives and preliminary evidence

Abstract: With economic globalization, Third World enterprises are increasingly collaborating with foreign firms through trade, subcontracting and equity linkages. The paper examines under which conditions linkages to foreign firms lead to environmental upgrading of Third World enterprises. Derived from the authors' research in a number of developing countries, the paper presents preliminary evidence of such upgrading. As the existing literature on environmental upgrading has a normative bias and tends to ignore economic mandates and constraints, the remaining part of the paper presents four theoretical frameworks based on standard business economics that may explain under which conditions linkages between Third World enterprises and foreign firms may be accompanied by environmental upgrading. It is argued that environmental upgrading in the value chain must be understood partly as a result of external industry and market forces, and partly as a result of the internal resources and competitive strategies of the companies involved. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.

Influence of initiators on supply chain value creation

Abstract: Value creation in the supply chain has attracted considerable attention in the literature. It has typically been characterized as being the result of either external or organization spanning, or internal efforts to improve supply chain performance. Few studies have examined the simultaneous effects of internally and externally focused efforts to improve supply chain performance. Moreover, there is no discussion in the literature of the precursors or initial conditions that lead to successful supply chains. Drawing from different theoretical perspectives, two key motivators or initiators of value creation in supply chains are identified: structural mechanisms and relationship building. It is proposed that these initiators have a positive influence on value creation efforts, operationalized by the improvement of supply processes and responsiveness to customer needs (external focus), and internal production processes (internal focus). A structural equation model linking initiators and value creation mechanis...

Technology and globalisation: who gains when commodities are de-commodified?

Abstract: Like many primary products, coffee has long been characterised as a commodity with falling terms of trade and volatile prices Yet, in recent years, there has been growing product differentiation in final markets, with premium prices being earned and high and sustainable incomes being provided So far, these product rents have been almost entirely appropriated by residents of high-income economies However, to the extent that growers can learn to improve their product through the systematic application of knowledge throughout the value chain, and consumers are taught to recognise that product variety and quality are determined in the growing rather than the roasting stage of the chain, an alternative outcome is possible This paper outlines the necessary knowledge flows and concludes with an assessment of who needs to do what if this more favourable outcome for growers is to be realised

The ‘Value Chain of Meaning’ and the New Economy

Abstract: If there is a ‘value chain’ of meaning, corresponding tovalue chains in business, then a suggestive correlation can be explored between author/production, text/commodity and audience/consumer. This article argues that meaning has been attributed to different sources in different historical epochs and that these have been associated with successive stages of the value chain in premodern, modern and contemporary (globalized) times. The analysis suggests that creative and cultural activities whose meanings are associated with one link in the chain (i.e. consumer/audience) may be negatively valued or even unintelligible to those whose ideological or disciplinary training centres on a different link (i.e. text/commodity or author/production). If observed from such a perspective, a critical ‘parallax error’ may distort our view of creativity in the new consumer economy.

World Class Supply Management: The Key to Supply Chain Management

Abstract: (2004). World Class Supply Management: The Key to Supply Chain Management. Journal of Global Information Technology Management: Vol. 7, No. 3, pp. 70-71.