Principle n°10 : Destroy your value chain
What killer-apps.com says:
Preemptively reexamine all
value chain relationships (the functions that create and distribute an
organization's goods and services). If they don't add value, get rid of
them.
What we understood :
What is a value chain ?
In a post-industrial economy, there are many steps between the manufacturer and the customer. An industry is supplied by other companies, sometimes outsources some activities. Then the product is tested, distributed and trasnported by another company, and finally sold by retailers, supermarkets.
What did new technologies change ?
But new technologies make communication easier, so that sometimes, customers and companies can deal together without using all intermediates.
Intermediate steps waste time and cost money. So, the advice is to deal directly with your end-users and consumers as much as you can.
Examples :
Example n°1 : Online travels.
The travel industry is concerned by this kind of process. You don't need to get to a travel agency. With a website like www.voyages-sncf.com, or any other online travel service, you can compare prices and hotels, prepare your own travel (wich makes it even more 'yours').
What did new technologies change ?
But new technologies make communication easier, so that sometimes, customers and companies can deal together without using all intermediates.
Intermediate steps waste time and cost money. So, the advice is to deal directly with your end-users and consumers as much as you can.
Examples :
Example n°1 : Online travels.
The travel industry is concerned by this kind of process. You don't need to get to a travel agency. With a website like www.voyages-sncf.com, or any other online travel service, you can compare prices and hotels, prepare your own travel (wich makes it even more 'yours').
Tags : value chain intermediates strategy
