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Value Chain Configuration is Increasingly Inadequate

Value chain configuration is increasingly inadequate as a means to describe how an organization organizes and operates to meet the needs of customers. Think about your own organization. To what degree would you consider it a value chain, value shop or value network?. What sorts of special challenges does this sort of configuration imply for the design and implementation of an ERP?

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Value chain involves separating an organization's system into various activities that generate value thus the company attains competitive advantage and creates value for shareholders. A generic value chain consists of inbound logistics, operations, outbound logistics, sales and marketing, and service. Inbound logistics consists of activities such as receiving, storing, and distributing products or materials to other parts of the organization. Company operations transform inputs into final products while outbound logistics distributes the product. Sales and marketing aims at promoting the product and service is offering support once the product ...

Solution Summary

The value chain configurations for increasingly inadequate are examined in the solution.