Value chain

About: Value chain is a research topic. Over the lifetime, 7206 publications have been published within this topic receiving 224183 citations.

Supply Chain Strategy: Its Impact on Shareholder Value

Abstract: In the last few years there has emerged a strongly held view that the ultimate purpose of the firm is to maximize shareholder value, that is the long run worth of the business to its owners. Many influences clearly impact upon shareholder value, but there is a growing recognition that the supply chain strategy employed by the firm can have a significant effect. This paper examines the concept of shareholder value and the related organizational framework of Value Based Management (VBM) and explores the connections with supply chain strategy.

Thriving in an increasingly digital ecosystem

Abstract: The business world is rapidly digitizing, breaking down industry barriers and creating new opportunities while destroying long-successful business models. Given the amount of turmoil digital disruption is causing, authors Peter Weill and Stephanie L. Woerner of the MIT Center for Information Systems Research say its time for companies to evaluate these threats and opportunities and create new business options for the more-connected future of digital ecosystems. In recent research, board members at large companies estimated that 32% of their companys revenue would be under threat from digital disruption in the next five years; 60% of board members felt their boards should spend significantly more time on this issue next year. Despite the threats from companies including Uber, Airbnb and Amazon, increasing digitization offers opportunities for companies to leverage strong customer relationships and increase cross-selling, the authors argue. The authors offer a framework, supported by examples, for helping managers think about their competitive environments. The combination of moving from value chains to ecosystems and increasing consumer knowledge, the authors write, provides business leaders with four distinct business models, each with associated capabilities and relationships. Companies can choose to operate as (1) suppliers, (2) omnichannel businesses, (3) modular producers or (4) ecosystem drivers. The authors found that businesses focused narrowly on value chains were at a disadvantage compared with those that thought more broadly about their business ecosystems. Companies that had 50% or more of their revenues from digital ecosystems and understood their end customers better than their average competitor saw 32% higher revenue growth and 27% higher profit margins than their industry averages. As they prepare for growing digital disruption, companies have two major decisions to make. First, they need to decide the extent to which they want to control the value chain or become part of a more complex ecosystem. Second, they need to decide how much they want to invest in knowing their end customers. Companies with ecosystem drivers as their dominant business model had the highest margins and growth of all the four options in the companies the authors studied

Industrial Cyberphysical Systems: A Backbone of the Fourth Industrial Revolution

Abstract: Cyberphysical systems (CPSs) are perceived as the pivotal enabler for a new era of real-time Internetbased communication and collaboration among value-chain participants, e.g., devices, systems, organizations, and humans. The CPS utilization in industrial settings is expected to revolutionize the way enterprises conduct their business from a holistic viewpoint, i.e., from shop-floor to business interactions, from suppliers to customers, and from design to support across the whole product and service lifecycle. Industrial CPS (ICPSs) blur the fabric of cyber (including business) and physical worlds and kickstart an era of systemwide collaboration and information-driven interactions among all stakeholders of the value chain. Therefore, ICPSs are expected to empower the transformation of industry and business at large to a digital, adaptive, networked, and knowledge-based industry with significant long-term impact on the economy, society, environment, and citizens.

Re-conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise

Abstract: We re-conceptualize the Bartlett and Ghoshal typology of national subsidiary roles in the multinational enterprise (MNE), using a resource bundling perspective. Our view is that national subsidiary roles can vary dramatically across value chain activities. We focus on the distinction among innovation, production, sales, and administrative support activities. For each value chain activity, the subsidiary bundles sets of internal competences with accessible, external location advantages. We also address the effects of regional integration on national subsidiary roles. Such schemes may affect substantially the extent to which location advantages of individual countries can be accessed and bundled with internal competences, thereby typically altering some national subsidiaries' roles in specific value chain activities. However, such substantive changes in specific value chain activities performed by national subsidiaries do not necessarily lead to any move in conventional subsidiary role typologies, such as the Bartlett and Ghoshal one, since these typologies only acknowledge aggregate subsidiary role changes, supposedly valid for the entire value chain.