Business PME is a gate of free information bound for the companies in the United States of America. This website offers thousands of contents as well as a companies directory.
The group’s other BtoB websites
-- Professional Networking
Tursday Janu. 8th 2009
Searcharticles Search
companies
- Strategy
- Marketing
- Advertising
- Trade
- Human Ress.
- Law & Rights
- Economics
- Finance
- Production
- Technologies
Virtual Value Chain | ||
The virtual value chain, created by John Sviokla and Jeffery Rayport, is a business model for the information services industry. This value chain begins with the content supplied by the provider, which is then distributed and supported by the information infrastructure, and then the context provider supplies actual customer interaction. It differs from the physical value chain of manufacturing/sales of traditional companies. To illustrate the distinction between the two value chains consider the following: “when consumers use answering machines to leave a message, they are using an object that is both made and sold in the physical world, however when they buy electronic answering services from the phone company they are using the marketspace—a virtual realm where products and services are digital information and are delivered through information-based channels.†(Rayport et al. 1996) There are many businesses that employ both value chains including banks which provide services to customers in the physical world at their branch offices and virtually online. The value chain is separated into two separate chains because both the marketplace (physical) and the marketspace (virtual) need to be managed in different ways to be effective and efficient (Samuelson 1981). New developments lead to new strategiesIn the last decade the advancement of Information Technology (IT) and the development of various concepts in manufacturing, like Just In Time (JIT) have led to the situation where businesses no longer focus on purely the physical aspect of the value chain as the virtual value chain is equal in importance. Michael Porter, creator of the value chain, stated that there is no value added by the Internet itself, however the Internet should be incorporated into the business’ value chain. As a result the Internet affects primary activities and the activities that support them in numerous ways. Porter describes the value chain in the following: “The value chain requires a comparison of all the skills and resources the firm uses to perform each activity.†The products and services the business supplies to the market need to conform to a channel that fits the customer’s needs. Therefore this channel controls the strategy of the business. The channel is comprised of different events, and each of these events should be in accordance to the overall strategy of the business. In the virtual value chain (VVC), information has become a dynamic element in the formation of a business’ competitive advantage. The information collected is utilized to generate innovative concepts and ‘new knowledge’. This translates to a new value for the consumer. An examination of the VVC model informs the business to what function they have in the chain, and if they are not currently offering services that are information based (i.e. Internet services), how they can make the transition to the information based model. In the virtual value chain the ‘virtual’ indicates that the value adding steps are performed with information. The transfer of information between all events and among all members is a fundamental component in using this model. In the VVC the creation of knowledge/added value involves a series of five events: gathering, organization, selection, synthesization, and distribution of information. The completion of these five events, allows businesses to generate new markets and new relationships within existing markets. The process of a business refining raw material into something of value and the sequence of events involved is similar to that of a business collecting information and adding value through its cycle of events. Copyright 2008 - France BtoB from Wikipédia
|
• Business cluster
• Qualitative marketing research • Concept drift • Organizational management and leadership&hellip • Association of Licensed Automobile Manuf&hellip • The Global Economy • Dashboard | |
