Optimizing Core and Peripheral Functions in Industry Value Networks PPT

This PPT slide, part of the 22-slide Strategy Chessboard - Redefine the Industry PowerPoint presentation, presents a framework for reconfiguring the industry value chain, emphasizing the distinction between core and non-core activities within organizations. It references Michael Porter's Value Chain Analysis, which systematically organizes and evaluates activities to enhance operational efficiency. The slide highlights a trend driven by technological advancements, globalization, and deregulation, termed "horizontalization." This phenomenon encourages organizations to concentrate on their core functions while outsourcing non-core tasks to external suppliers and partners.

The strategy outlined aims to facilitate the entry of third parties into the market, fostering innovative collaboration with competitors and customers. This approach not only enhances operational flexibility, but also opens avenues for new competitive strategies. The slide also introduces the concept of Value Networks, which differ from traditional Value Chains by mapping interrelationships among activities without adhering to a strict sequential order. This distinction can provide deeper insights into how organizations interact and create value.

The mention of thought leaders such as Porter, Aurik and Willen, J. Moore, and Christensen suggests a foundation built on established theories and practices in strategic management. The slide concludes with a note on common strategies derived from Value Chain analysis, including forward and backward integration, reconfiguration, and outsourcing. This content is critical for executives looking to refine their operational strategies and adapt to evolving market dynamics. Understanding these frameworks can lead to more informed decision-making and strategic planning.

This slide is part of the Strategy Chessboard - Redefine the Industry PowerPoint presentation.

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Strategic Planning Value Chain Analysis Michael Porter's Value Chain Value Chain Globalization Globalization

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