Today, we started of with creating teams. Then spoke about the drivers of the internet economy and began and ended discussion about Michael Porter’s value chain.
Integrative elements that DELL has employed on a) the supply side by managing its supply chain as single organization, being able to control costs which creates customer value, running extensive metrics in real-time, and targeting global growth. B) The Customer side by keeping close customer relationships, and Speed allowing fast customization and delivery.
The stages an enterprise is likely to go through en route to a virtual value chain are:
- Visibility: their information system allows them SEE the supply chain processes more clearly.
- Mirroring: creates a parallel system in which information MIRRORS the physical activities of the supply chain.
- More Value to the customers: use information to deliver value to customers in different ways and to create new value.
The business practices used by Zara to be more responsive to customer needs and successful financially are by allowing customers to make inputs about fashion trends, and if a trend is discovered they implement it. This process lets customers feel valuable in the research process. They implement their trends in about two weeks to its stores. Also they own their own production facilities so they make all the clothes and raw materials instead of being outsourced.
Internet has increased productivity
- The Moore’s Law, computing power doubles as cost is cut in half.
- Power of the network increased.
The Value Chain Concept:
- Supply Chain Management
- Product Development and Management
- Customer Relations Management
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