Value Chain Analysis Microsoft Corporation Cornel Daniel Gherman GB570 Managing the Value Chain Dr. John Craddock

Value Chain Analysis Demand Chain Analysis Identification and Analysis of Value Drivers Value Proposition ▫Value Proposition as related to Demand Chain ▫Value Proposition as related to Supply Chain Supply Chain Analysis Enterprise Value Competitive Advantage

Value Chain Analysis Microsoft Corporation has been known to have an efficient value chain and offering the customer great value with its products. A value chain assists in creating competitive advantage, and this could be achieved in different ways. The organization has to place itself in a competitive position fist. The competitive position is a dynamic process, a “process rendered even potentially more dynamic by the drivers underlying the ‘new economy’” (Walters, & Rainbird, 2007, pg. 384).

Demand Chain and Supply Chain The value chain which consists of the demand chain and the supply chain is what drives a company. The supply chain is focused more on reducing costs, and the demand chain is leaning more towards the needs of the customer. Microsoft Corporation considers that for consumer goods manufacturers, the key to profitable growth is to evolve the enterprise into a demand-driven supply network, moving from a "push" method of moving product, which is based on incomplete or inaccurate demand information, to a "pull" method, which is based on quick response to real-time demand signals. Supply chain management solutions from Microsoft and its partner network addresses the realities of today's complex global supply chains and provide the needed foundation on which to transform and improve supply chains, moving them into more demand-driven models (Microsoft.com, 2011).

Demand Chain and Supply Chain Cont’d The demand chain of a corporation allows it to create a clear vision of future demand and to align all supplies and sales processes around that vision. Microsoft Corporation is able to support organizations in creating realistic and achievable sales budgets, building reliable sales forecasts from detailed market intelligence, managing promotions effectively, and establishing optimal inventory levels for a maximum return on investment at stores and distribution centers across the value chain. There are several value drivers for Microsoft Corporation, but cloud computing is one area where customers and partners are able to take advantage and use this technology.

How To Eliminate Waste in the Value Chain At Microsoft, the company is relying on feedback from customers and partners. Through surveys the company is able to figure out the satisfaction and trends that customers desire. Paying close attention to the needs of its customers and partners makes it possible for it to deliver better products, programs, and services.

The Effectiveness of the Value Chain To have an efficient and improved supply chain, companies need to be able to work across multiple systems with a common interface to overview the entire enterprise. Microsoft has the ability to leverage a collaborative environment across departments and supply chain partners to enable both formal and informal collaboration. It is important for the company to respond quickly to changes in the supply or demand that are of a short period only.

Value Chain Components Microsoft’s supply chain platform provides the capabilities that consumer goods companies need to improve supply chain performance while leveraging current IT investments in the most effective way. The ability to provide a single platform for supply chain performance by role, with KPIs and metrics linked throughout the organization, and an ability to drill into root cause analysis and understand deviations. The ability to support structured and unstructured collaboration with partners—that is, suppliers, distributors, and customers.

Value Chain Components The ability to present all this to the user in a role-based, exception-based workbench that extends the reach of supply chain data across the entire organization, with the familiar look and feel of Microsoft tools. The ability to support real-time, transactional visibility across systems and a heterogeneous IT landscape, including capturing and integrating “real-time” events in the physical layer of the supply chain.

Value Chain Components Over the years Microsoft has continually created innovative technology products that have transformed the way people work, learn, play, and communicate. In the product development process the company is interested and is considering the feedback of its partners and customer in delivering and building value into every product they make.

Recommendations Companies need to find its customer and create and provide value, and their main goal is to obtain trust from that customer which in return values that company. Look at past and current sales data, and market intelligence to establish reliable sales forecasts. The core competencies of an organization are sometime considered to be hard to imitate or substitute; therefore, they are viewed as unique sources of sustained competitive advantage.

Recommendations Companies need to make sure that the quality perceived by the customer does not diminish over time due to increased performance expectations from products. Organizations need to have a value chain in order to function and it needs to be compared against its respective industry and determine its value and performance and the value drivers.

Summary Microsoft Corporation’s goal is to offer its customers and partners the best possible end-to-end experience, and to become a satisfaction leader in the technology industry. The better Microsoft is at building a culture of accountability and trust, listening and responding to customers, simplifying product offerings and services, improving product quality and security, and innovating based on customer feedback, the more it will satisfy its customers and partners. The company values the ways in which input from customers and partners helps it progress as an organization and improve the quality of its products.

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