Reconfiguring Core and Non-Core Activities in Value Chains PPT

This PPT slide, part of the 62-slide Strategy Chessboard PowerPoint presentation, presents a framework for reconfiguring the industry value chain, emphasizing the importance of distinguishing between core and non-core activities within an organization. It references Value Chain Analysis, a concept originally developed by Michael Porter, which systematically organizes and evaluates the activities that contribute to a company's value creation.

The slide highlights that many industries are experiencing a shift towards "horizontalization." This trend is driven by advancements in IT, globalization, and deregulation. Organizations are increasingly focusing on their core competencies while outsourcing non-core functions to suppliers and partners. This strategic pivot not only allows for the entry of third parties into the market, but also fosters new collaborative opportunities with both competitors and customers.

Additionally, the slide introduces the concept of Value Networks, which differ from traditional value chains by mapping out interrelationships among activities without adhering to a strict sequential order. This approach can provide a more nuanced understanding of how various components of the business interact and contribute to overall performance.

The slide concludes by mentioning common strategies derived from Value Chain analysis, such as forward or backward integration and outsourcing. These strategies can be pivotal for organizations looking to enhance efficiency and adaptability in a rapidly changing market environment. Overall, the content encourages executives to rethink their operational frameworks and consider innovative approaches to value creation.

This slide is part of the Strategy Chessboard PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. Strategy Chessboard is a powerful A.T. Kearney Strategic Planning framework used for selecting the optimal strategic approach.

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