Value Chains and Clock Speed Bruce Hartman Vish
Value Chains and Clock Speed Bruce Hartman Vish Hegde
PC industry value chain
Competing Olympic Rings: 3 -D Concurrent Engineering PRODUCT Performance Specifications Recipe, Unit Process PROCESS Technology, & Process Planning Details, Strategy Product Architecture, Time, Space, Availability Make/Buy components VALUE CHAIN Manufacturing System, Make/Buy processes
3 -D Concurrency Model Example P ro t c du • Customer Needs • Market Segments • Product Architecture ss e c ro • Mission Statement P • Operating Objectives • Policies & Procedures -Structural: Bricks, Tech, Org -Infrastructural: HR, Business Processes in 1. Sourcing: Make/Buy a h lu a V e. C 2. Partner Selection 3. Relationship Design (spot, alliance, equity, etc. ) 4. Logistics System Design 5. Inventory management Policies 6. Relationship Management 7. Value Chain Architecture
Fine’s Clockspeed (1998) Approach Double Helix Theory of Industry/Product Evolution NICHE COMPETITORS INTEGRAL PRODUCT VERTICAL INDUSTRY MODULAR PRODUCT HORIZONTAL INDUSTRY TECHNICAL ADVANCES HIGHDIMENSIONAL COMPLEXITY ORGANIZATIONAL RIGIDITIES SUPPLIER MARKET POWER PRESSURE TO DIS-INTEGRATE PRESSURE TO INTEGRATE PROPRIETARY SYSTEM PROFITABILITY Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence? ”
Global Design Chain – Apparel industry
Global Design Chain – Apparel industry • Fit Sessions • Product Reviews Video Conference Factory Product Specifications Asian Agent • Specs. Received • Sample Status • Price Estimates Samples Internet Branded Wholesaler • Product Specs. Sent • Sample Requirements
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