How do you optimize customer value with the value chain analysis framework?

2 Step 2: Map your value chain

The second step is to map your value chain, which is the set of activities that you perform to deliver your value proposition to your customers. Your value chain consists of two types of activities: primary activities and support activities. Primary activities are directly related to creating, marketing, delivering, and servicing your products or services, such as inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service. Support activities are indirectly related to your value proposition, but enable and enhance your primary activities, such as procurement, technology development, human resource management, and infrastructure. To map your value chain, you need to identify and describe each activity, and how they are linked and coordinated.

4 Step 4: Implement your value strategy

The fourth step is to implement your value strategy, which is the set of actions that you take to optimize your value chain and enhance your value proposition. Your value strategy should be based on your value drivers, and aim to achieve one or more of the following objectives: increase customer satisfaction, reduce costs, increase revenues, or create competitive advantage. To implement your value strategy, you need to prioritize and execute the changes that will have the most impact on your customer value, and monitor and measure the results.

By following these four steps, you can use the value chain analysis framework to optimize customer value and achieve your business goals. Value chain analysis is a versatile and practical tool that can help you gain insights into your strengths and weaknesses, identify opportunities and threats, and create a sustainable and profitable business.