This PPT slide, part of the 16-slide Value Chain Analysis PowerPoint presentation, presents an evolution of the Value Chain concept, originally articulated by Michael Porter. It contrasts the traditional internal perspective with a newer, external viewpoint. The traditional model, depicted in a structured diagram, outlines primary and support activities essential for value creation within an organization. These include firm infrastructure, human resource management, technology development, and procurement, along with inbound and outbound logistics, operations, marketing, sales, and after-sales support.

The slide also introduces an alternative approach proposed by Shank and Govindarajan. Their model emphasizes a holistic view of the Value Chain, focusing on external factors and the broader context of the customer’s value delivery system. This shift suggests that organizations should not only analyze their internal processes, but also consider how they interact with external stakeholders and the market environment.

Key takeaways include the importance of adapting to changing perspectives in value analysis. The traditional model, while foundational, may not fully capture the complexities of modern business dynamics. The external approach encourages companies to evaluate cost drivers across the entire industry value chain, identifying opportunities and challenges that may not be visible through an internal lens. This broader view can lead to more informed strategic decisions and enhanced responsiveness to market demands. Understanding these frameworks can be crucial for executives aiming to refine their operational strategies and improve overall performance.

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Value Chain Analysis Value Creation Value Chain Resource Management Sales Logistics