After a few decades, we have modernized the structure of the value chain so that it houses the three types of processes currently accepted: management, primary and support. Check out how the modernized value chain is organized:
In this section you will find the result expected by the company (most private companies aim at margin or profitability). It is located to the right of the value chain and represents the difference between the value perceived by the customer and the total cost of producing the product or service. Thus, the margin is directly linked to the company’s profitability.
Modernized value chain
In the modernized version of the value chain, management processes are highlighted, which are also relevant in generating value for the customer. In addition, it is important to note that in the modernized value chain, processes are no longer separated by departments, but organized as end-to-end processes.
Example value chain
In this example, management processes involve strategic planning and management and process management. The primary macroprocesses, that is, the most important ones in delivering value to the customer, start with research and product development, go through the marketing campaign to attract new contacts, proceed to the acquisition of raw material for the stock, then involves the customer order, pizza production and, finally, ends with delivery.
To support these processes, there are financial, people, technology and infrastructure management processes for the pizzeria.
To organize work and performance management, we also highlight the end-to-end processes that in the example above are: From Idea to Product Launched, from Marketing Campaign to New Contacts, From Inventory to Replenishing Stock, From Open Kitchen to Closed Kitchen, From Order to Delivery and Complaint to Closing.
Did you see how the value chain describes on a page everything that happens in the company to deliver value to the customer? Here’s the full article about the same and you can have a look at it.
Is there a difference between value chain and process mapping?
It is common for many people to confuse the concept of value chain with that of process mapping, as both have to do with process management. But in practice they are quite different!
The process mapping search reveal the sequence among the activities that make up the end to-end process of the company in order to document, improve, standardize and transform the activities that take place on a daily basis.
The value chain, on the other hand, will detail how the company organized its processes to deliver value to the customer in various spheres, in an interconnected, wide and panoramic way. That is why companies are also called organizations, have you ever thought about that?
The chain goes beyond process mapping, after all, it reflects the company’s operation in a more comprehensive way. In addition to showing the primary processes, it reveals what supports them (the support processes) and who orchestrates all activities (the management processes).