Understanding the Dynamics of the Value Chain

Suggested Actions

•Design the value chain based on the organization’s ­competitive dimensions. If speed to market is key, then all value chain activities should be designed to deliver on that dimension, and the like.

•Develop an understanding of how supply chain ­performance—an important component of the value chain—impacts the financial performance of the organization.

•Educate everyone responsible for managing and carrying out value chain activities on the organization’s financial ­performance metrics.