There are three evergreen wealth value chain formula options. The first model develops and produces the product before selling, which happens when we buy something that is already ready in an e-commerce, for example.
The second company develops the product, sells it and then produces it, that is, it is a custom sale. The third company sells first, then develops and produces. It is a solution for companies that need an initial investment from customers to be able to develop and produce products.
The Right Types
These are just three types of business models, but from them you can already see that each company can create competitive advantage in its own way, right?
We hope we have helped you to understand a little more about the value chain. If you have any further questions on the subject, be sure to check out this webinar where we explain more about how to use the value chain in process management. You can visit https://valuenetworksandcollaboration.com/evergreen-wealth-formula-review/
There are four processes to support the operation of a company:
- Infrastructure
- Human resource Management
- Technological Development
- Acquisition or Purchasing
Next, we will delve into each of them:
Infrastructure
Infrastructure is much more than maintaining the company’s assets and physical facilities. These processes bring together the entire basis for the operation, such as tax, accounting, financial, quality activities, etc.
Human Resource Management
It brings together activities aimed at managing and developing the company’s human capital. Some activities are, for example, hiring, training, remuneration, skills and motivation of employees.
Technological Development
These processes focus companies’ development and innovation efforts. There are activities such as process automation, development of own technologies etc.
Acquisition or Purchasing
It is through the acquisition processes that the company obtains the raw materials necessary to produce and operate.
The Purchasing management is very important as it allows each acquisition is the most benéficoBORA! possible for the company. By concentrating purchases in one department, it is possible to increase the team’s bargaining power.
For retail companies, purchasing management is one of the most important activities for the operation of the business.
Margin
After this dive on the main processes and the support processes it is time to talk about the Margins. We can conceptualize the margin as the difference between the cost of production and the amount that the shopper is willing to pay for a product, its perception of value. The main and support processes make up the costs for producing the product and contribute to generating value for the customer. Therefore, the relationship is strong between them.
Conclusion
We hope that knowledge about what the value chain is will help to develop a systemic thinking about your business. In this way, you can understand the cause and effect relationships and how each process contributes to the business objectives.
