Inputs required to make the product such as materials, components, parts, energy and natural resources.
The development and manufacturer of products. It is also common to separate product development as a separate value added step.
The process of selling the product including all marketing and sales activities.
The process of reaching the customer to deliver your obligations to them.
Inputs including energy, equipment and physical elements of a service, known as service tangibles, such as the food served by a restaurant.
The operational work of delivering a service such as the logistics and kitchen operations of a restaurant. In many cases, information technology is viewed as a value added part of the service. For example, an airline would have no value without its systems for managing bookings, flights and other aspects of operations.
Marketing & Sales
The process of developing, branding, distributing, promoting, pricing and selling services.
Any touchpoints with the customer in the end-to-end customer experience adds value.
In some cases, a manufacturer or service provider sell their own goods by an ecommerce channel. In this case, they add value at the supply level.
The process of purchasing goods, processing inbound deliveries and warehousing goods.
The promotion, pricing and sales of goods using ecommerce channels or retail shops using a bricks and clicks model.
The process of assembling the order and delivering it to the customer.
Handling customer inquiries and requests such as returns.
Foundational infrastructure and software services including the management of data centers.
Applications & Systems
Promotion, pricing and sales. Software as a service may be sold by a global sales team using personal selling methods. Alternatively, there may be an attempt to automate this layer of the value chain too with a combination of digital advertising and ecommerce capabilities.
SaaS firms may offer multiple levels of customer service with self-service tools at the lowest price level progressing to a personal account representative that you can get on the phone. In some cases, SaaS is sold with support for customization via a consulting practice that adds another layer of value.
|Overview: Value Chain|
A sequence of activities that each adds value to a product, service or experience.