Top level value added chains: Level 1 & 2

Value chain analysis can be used as a supporting method when designing future process models. Especially in BPR (business process redesign) assignments, where the current process may be changed drastically. An example is when a customer is open for the discussion whether some activities may be outsourced. By separating the business system into a series of value generating activities, Value Chain analysis can be used to:

• identify sources of competitive advantage
• create uniqueness by reconfiguring the value chain (differentiation advantages)
• analyze costs by assigning costs to value chain activities
• decide on business process outsourcing topics (understanding the linkages between activities can lead to more optimal make-or-buy decisions that can result in either a cost advantage or differentiation advantage).

Value chain by Porter

Similar to the current state understanding, the top level value added chains are determined together with the top level management team, based on the future business context and business requirements (founded in the voice of the customer and voice of the business).
Please see chapter 3.1.4 for fundamental design considerations!