This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/firm-value-chain-industry-value-chain-and-business-intelligence-1615 BENEFITS OF DOCUMENT 1. Simple & easy to understand approach with illustrations. 2. Can be used for presentation - step by step progress and use of animation. 3. Slide notes provided (not visible in above preview). DOCUMENT DESCRIPTION This presentation discusses the concepts of firm value chain and industry value chain--and how the framework lends itself to generating business intelligence. It also uncovers the type of strategies that can be adopted in response. The broad coverage is as follows: 1. Value Chain - Meaning 2. What is value added? 3. Value Chain & Value Added - Key Implications 4. Firm value chain 5. Determinants of firm margin 6. Firm efficiency dynamics 7. Industry value chain 8. Industry value chain - illustration 9. Business intelligence 10. Value chain model - Pros & Cons The slide preparation has been done for direct presentation use - providing step by step progress and with use of animations. Where required, slide notes have been provided (not visible in above preview).

1. Firm Value Chain, Industry Value
Chain & Business Intelligence

2. 4
A value chain describes the full range of activities that are
required to
bring a product or service from conception
through the intermediary phases of
production/operations
then deliver it to final consumers
and final disposal after use
It includes activities such as
design, production, marketing, distribution and support
services up to the final consumer.
Value Chain - Meaning
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

3. 7
The term Value Added refers to the fact that in a Value
Chain
value is added to preliminary products
through use of resources like
tools/machinery
manpower
knowledge and skills,
other raw materials etc.
Continued...
Value Added
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

4. 10
Value Chain & Value Added –
Key Implications
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

5. Firm Value Chain – Porter’s Generic Model
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Firm Infrastructure & Administration
Human Resource Management
Technology
Procurement
Margin
Primary
activities
Supportactivities
13
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

6. Firm Value Chain – Porter’s Generic Model
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Firm Infrastructure & Administration
Human Resource Management
Technology
Procurement
Margin
Primary
activities
Supportactivities
16
Activities that generate value for a firm
Inbound Logistics
Examples
-Supply Schedule
- Input quality control
- Input receiving
- Input storing
- Input internal
distribution etc.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

7. Firm Value Chain – Porter’s Generic Model
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Firm Infrastructure & Administration
Human Resource Management
Technology
Procurement
Margin
Primary
activities
Supportactivities
19
Activities that generate value for a firm
Marketing & Sales
Examples
- Customer /channel
management
- Promotion &
advertising
- Market research
- Order taking etc.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

8. Firm Value Chain – Porter’s Generic Model
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Firm Infrastructure & Administration
Human Resource Management
Technology
Procurement
Margin
Primary
activities
Supportactivities
22
Activities that generate value for a firm
Activities that support value generating activities Procurement
Examples
- Supplier
management
- Sub-contracting
- Request for
proposal
- Supplier trade-
credit/funding etc.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

9. Firm Value Chain – Porter’s Generic Model
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Firm Infrastructure & Administration
Human Resource Management
Technology
Procurement
Margin
Primary
activities
Supportactivities
25
Activities that generate value for a firm
Activities that support value generating activities Infra & Admin.
Examples
- Corporate/general
management
-Finance &
accounting
- Legal
- House keeping
- Travel Admin.
- Vehicle Admin. &
maintenance etc.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

10. Firm Value Chain – Porter’s Generic Model
Inbound
logistics
Operations
Outbound
logistics
Marketing
& Sales
Service
Firm Infrastructure & Administration
Human Resource Management
Technology
Procurement
Margin
Primary
activities
Supportactivities
28
Activities that generate value for a firm
Direction of value accrualDirection of value accrual
Depends
on linkage
efficiency
between
various
activities in
the value
chain...
& on the
maximum
amount
customers
are willing to
pay over &
above the
costs
incurred
Activities that support value generating activities
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

11. 31
Value Chain – Determinants of Margin
Value Created and Captured – Cost of Creating that Value = Margin
Determined by:
1. The type/nature of need the
product or service aims to
meet?
2. How well the firm
communicates with the
customer on how it could
meet these needs?
3. How better it does it (1 & 2) in
relation to the competitors?
4. What is the customer
experience – during purchase
& post purchase?
5. How well the firm keeps itself
on top of changing
market/customer behavior?
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

12. 34
Points to explore on cost of creating value
Key cost factors that relate to value factors
Why do costs differ across competition?
Why profitability differs amongst the players in the industry?
Which activities are of the firm are performed
efficiently/inefficiently based on adopted benchmarks?
How a given activity’s cost influences another?
Can the key competitor cost structure be determined?
How is it in comparison to the firm’s?
Do we or does competition have any advantage – what is its
nature and source?
Competition & Cost Perspective
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

13. 37
The firm therefore needs understand and have a good grip
on the market or industry dynamics in which it operates for
better control/management of the ‘internal efficiency
dynamics’.
Firm Efficiency Dynamics
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

14. Industry Value Chain
Firm
Value Chain
Channel/
Distributor
Value Chain
Buyer
Value Chain
Disposal/
Recycle
Value Chain
Supplier
Value Chain
40
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

15. Industry Value Chain – Another Perspective
43
Firm
Value
Chain
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

16. 46
Supplier
Value
Chain
Supplier
Value
Chain
Supplier
Value
Chain
Firm
Value
Chain
Channel
Value
Chain
Channel
Value
Chain
Channel
Value
Chain
Buyer
Value
Chain
Buyer
Value
Chain
Buyer
Value
Chain
Industry Value Chain – Another Perspective
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

17. 49
Industry Value Chain - Illustration
Automakers/
Vehicle Manufacturers
Value Chain
- Passenger Vehicles
- Commercial vehicles
- Two wheelers etc.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

18. 52
Industry Value Chain - Illustration
Tier III
Supplier
Tier II
Supplier Tier I Supplier
Automakers/
Vehicle Manufacturers
Value Chain
- Passenger Vehicles
- Commercial vehicles
- Two wheelers etc.
Raw
Material
-Steel
-Plastics
-Glass
-Rubber
-Aluminum
-Foam
-Textile etc.
Semi
Finished
& others
-Wiring
-Cables
-Hardware
-Casting
-Forging
-Stamping
etc.
Finished
-Engines &
transmission
-Wheels & axels
-Steering &
suspension
-Brake systems
-Seats & trims
-Electrical systems
-Electronic systems
etc.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

19. 55
Industry Value Chain - Illustration
Tier III
Supplier
Tier II
Supplier Tier I Supplier
Automakers/
Vehicle Manufacturers
Value Chain
- Passenger Vehicles
- Commercial vehicles
- Two wheelers etc.
Other/Allied
Component
Suppliers
Raw
Material
-Steel
-Plastics
-Glass
-Rubber
-Aluminum
-Foam
-Textile etc.
Semi
Finished
& others
-Wiring
-Cables
-Hardware
-Casting
-Forging
-Stamping
etc.
Finished
-Engines &
transmission
-Wheels & axels
-Steering &
suspension
-Brake systems
-Seats & trims
-Electrical systems
-Electronic systems
etc.
Paints, tires, entertainment
systems, windshield, air-bags,
air-conditioning systems etc.
Their input suppliers...
Upstream
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

20. 58
Industry Value Chain - Illustration
Tier III
Supplier
Tier II
Supplier Tier I Supplier
Automakers/
Vehicle Manufacturers
Value Chain
- Passenger Vehicles
- Commercial vehicles
- Two wheelers etc.
Other/Allied
Component
Suppliers
Raw
Material
-Steel
-Plastics
-Glass
-Rubber
-Aluminum
-Foam
-Textile etc.
Semi
Finished
& others
-Wiring
-Cables
-Hardware
-Casting
-Forging
-Stamping
etc.
Finished
-Engines &
transmission
-Wheels & axels
-Steering &
suspension
-Brake systems
-Seats & trims
-Electrical systems
-Electronic systems
etc.
Paints, tires, entertainment
systems, windshield, air-bags,
air-conditioning systems etc.
Their input suppliers...
Exports
After
Market
Dealers/ Own
showroom
Upstream
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

21. 61
Industry Value Chain - Illustration
Tier III
Supplier
Tier II
Supplier Tier I Supplier
Automakers/
Vehicle Manufacturers
Value Chain
- Passenger Vehicles
- Commercial vehicles
- Two wheelers etc.
Other/Allied
Component
Suppliers
Raw
Material
-Steel
-Plastics
-Glass
-Rubber
-Aluminum
-Foam
-Textile etc.
Semi
Finished
& others
-Wiring
-Cables
-Hardware
-Casting
-Forging
-Stamping
etc.
Finished
-Engines &
transmission
-Wheels & axels
-Steering &
suspension
-Brake systems
-Seats & trims
-Electrical systems
-Electronic systems
etc.
Paints, tires, entertainment
systems, windshield, air-bags,
air-conditioning systems etc.
Their input suppliers...
Exports
After
Market
Dealers/ Own
showroom
Service &
spares
Insurance &
Financing
C
O
N
S
U
M
E
R
Upstream
Downstream
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

22. 64
Competitor Analysis
Competitive
Intelligence
Market Intelligence
Business Intelligence
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

23. 67
Competitor Analysis
Competitive
Intelligence
Market Intelligence
Business Intelligence
• Industry structure &
players
• Industry SWOT
• Product supply &
demand drivers
• Other
economic/macro
drivers e.g. interest
rate sensitivity,
cyclicality,
seasonality
• Key direct/indirect
competitors etc.
• .
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

24. 70
Porter’s ‘five forces model’ and the suggested broader
strategic framework is a good tool to gather business
intelligence especially on market & competitive intelligence
and
formulate strategies which the firm believes will be in synch
with its strengths/core competence.
Business Intelligence
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

25. 73
While analyzing the competitive forces within this frame work
(competitive intelligence) many elements which form the
immediate environment & wider environment (market
intelligence) also be gathered.
Immediate environment
Laws, regulations & taxation – with related bureaucracy
License, permits required
Level of consumer protection
Product & process standards maintained
Financial institutions/services/products available etc.
Continued...
Business Intelligence – Environment Components
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

26. Value Chain Model – The Pros
76
It brings clear focus/shifts focus to the customer – culturally
creates an externally focused organization mindset
Provides a framework where the linkages between activities
across functions are analyzed
Provides a shared service perspective of common support
functions. The linkages are analyzed accordingly to exploit
synergies
Every activity becomes customer centric to see if it is actually
value accretive or redundant
Helps analyze behavior of costs and identify the key cost drivers
Continued...
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

27. 79
Thank You
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/firm-vc-industry-vc-and-business-intelligence-1615

28. 1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com