Understanding the Dynamics of the Value Chain

Introduction

The value chain is not a static entity easily depicted by an organization chart, but rather a living and dynamic business ecosystem that must be nurtured to produce the desired results. As with biological ecosystems, the value chain requires balancing a number of elements to provide reliable results while remaining responsive to the continuous changes in the business and economic environments in which it functions. A great deal of effort is put forth today in developing processes, often enabled by ­technology, to enhance the value chain. Yet the age-old element of developing the human side of business remains a challenge for many ­organizations.

In Chapter 3, we defined the boundaryless organization and the dysfunctions that can ...