The value chain categorizes the generic value adding activities of an organization. The "primary activities" include: inbound logistics, operations (production), outbound logistics, sales and marketing, and service (maintenance). The "support activities" include: administrative infrastructure management, human resources management, R&D, and procurement. The costs and value drivers are identified for each value activity. The value chain framework quickly made its way to the forefront of management thought as a powerful analysis tool for strategic planning. Its ultimate goal is to maximize value creation while minimizing costs.
Internet is completely destroying the traditionnal way of thinking value chain, including whole new process, different kind of relationship between workers, and changing everybody’s working habits. Firms definetily need to anticipate all those changes, because if they don’t prepare and fully assume them, they will have to cope with unwilled consequences,getting forced by competiton. Use digital technology to recraft the buying, selling, and producing processes and relationships.
