Value System Analysis

Value System Analysis

By John Howard

The elements of a company’s value chain are likely to be changing both as market, competitive and system conditions change and as management responds in order to improve future profits. A static value chain analysis is of limited value (Warren, 2008).

Generally termed “value chain analysis” the emphasis here is to look for drivers of cost and value within the value system, in order…

  • to discover opportunities where costs can be reduced, or value added, and boost profitability
  • to seek opportunities where adding cost in one area can either reduce costs elsewhere, or enable higher pricing
  • to seek opportunities where cost and value improvements can arise by collaboration with suppliers, markets and customers

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