Strategic Intelligence & Value Chain Management May 20, 2007
Posted by admin in : Business Intelligence, Strategic Planning , trackbackThe value chain is a business management concept that was first explained and made popular by Michael Porter.
The value chain classifies the generic value-adding activities of an organization. The “primary activities” include: inbound logistics, operations (production), outbound logistics, marketing and sales, and services (maintenance). The “support activities” include: administrative infrastructure management, human resource management, Research & Development, and procurement. The costs and value drivers are identified for each value activity.
The value chain framework made its way to the forefront of management thought as a powerful analysis tool for strategic planning. Its final objective is to maximize value creation while minimizing costs.
In a guest article (Value Chain Management – Broken Links) Den Taylor - Managing Partner of Strategic Insights – points out the benefits of incorporating strategic intelligence into value chain management.
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