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Value Chain Maps
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Success is about delivering better value …
Company Suppliers Employees Investors Customers Do Apple discussion first? Or ask them to name a successful organisation….. And do exercise.
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What target segment(s) to focus on What operating model or value chain
Strategy addresses What target segment(s) to focus on What offer What operating model or value chain 1 6 5 2 7 3 4 BUY MAKE SELL
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Minimum knowledge of strategy needed ..
Market segments you are trying to serve Products and services you want to offer Channels you want to use Geographies you want to serve Basis of competitive advantage you want to build/use Ask them how many value chains in Aijenka. … to do operating model work
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Value delivery chain “A series of activities that, in sequence, create and deliver value to customers or beneficiaries of the organisation”
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Michael Porter’s Value Chain
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Simple value chain Buy Make Sell
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Most organizations service multiple segments
Ashridge Business School Open courses value chain Tailored courses value chain Research value chain Consulting value chain Weddings value chain Etc Ask them how many value chains in Aijenka.
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Most organizations service multiple segments
How (value chain) What (products/services) To Whom (markets) 1 Define problem Design Research Complete + Publish 6 5 BUY MAKE SELL 2 Design Market Deliver 4 7 Market Design Contract Deliver 3
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A value chain for each segment you serve
How (value chain) What (products/services) To Whom (segments) 1 Define problem Design Research Complete + Publish 6 5 BUY MAKE SELL 2 Design Market Deliver 4 7 Market Design Contract Deliver 3
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A value chain map comparing segments
All Value Chain Steps Build Clients Design Deliver/do Market Quote/Sell Adjust design Admin Follow up Segments Open courses Tailored Qualifications Issue qual Conferences Weddings + design Research publish Source of advantage
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A value chain map comparing segments
All Value Chain Steps Build Clients Design Deliver/do Market Quote/Sell Adjust design Admin Follow up Segments * Open courses * * Tailored * Qualifications Issue qual Conferences Weddings + design * * Research publish Source of advantage * Problem/Opportunity
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A value chain map comparing segments
All Value Chain Steps Build Clients Design Deliver/do Market Quote/Sell Adjust design Admin Follow up Segments * Open courses * * Tailored * Qualifications Issue qual Conferences Weddings + design * * Research publish Combine/manage together Source of advantage Link or standardise * Problem/Opportunity Separate and manage by segment
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Beware combining when “strategies” differ
Product innovation Customer intimacy Operational efficiency Ask them how the organisation might be different for the three strategies? Ask them which Aijenka is? Ask them which Ashridge open courses is?
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Exercise Choose a part of one of your organisations
A part where there are multiple segments and combined/linked steps exist or could exist Identify some different segments in this part of the organisation (you don’t need to be complete) Define a value chain for each segment (four to six steps) Lay out the value chains as a map and identify Sources of advantage Problems/opportunities Steps that can be Combined to gain economies Steps that need to be kept Separate to allow tailoring Steps that can be beneficially Linked
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Value delivery chains for regulator of educational qualifications
Strategy, Risk and Research Authorisation Supervise Moderate Set Regulatory strategy Risk Framework Legal framework Research and Evaluation Policy and conditions Industry guidance Standards for providers & qualifications Recognise providers Accredit qualifications Determine supervision regime Monitor Inspect Assess risk Moderate awarding of key qualifications Enforcement Service notice Manage appeals Enforce sanctions Policy, guidance and standards Vocational Qualifications Strategy, Risk and Research Authorisation Supervise Moderate Set Regulatory strategy Risk Framework Legal framework Research and Evaluation Policy and conditions Industry guidance Standards for providers & qualifications Recognise providers Accredit qualifications Determine supervision regime Monitor Inspect Assess risk Enforcement Service notice Manage appeals Enforce sanctions
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…value chain map Educational Qualifications Vocational Qualifications
Strategy, Risk and Research Authorisation Supervise Moderate Set Regulatory strategy Risk Framework Legal framework Research and Evaluation Policy and conditions Industry guidance Standards for providers & qualifications Recognise providers Accredit qualifications Determine supervision regime Monitor Inspect Assess risk Moderate awarding of key qualifications Enforcement Service notice Manage appeals Enforce sanctions Policy, guidance and standards Vocational Qualifications Policy, guidance and standards Strategy, Risk and Research Authorisation Supervise Moderate Enforcement Set Regulatory strategy Risk Framework Legal framework Research and Evaluation Policy and conditions Industry guidance Standards for providers & qualifications Recognise providers Accredit qualifications Determine supervision regime Monitor Inspect Assess risk Service notice Manage appeals Enforce sanctions Key Separate Link Combine
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