How do you use value chain analysis to find new opportunities?

Promote cross-functional collaboration within your organization by breaking down silos between departments. Encourage teams from different functions, such as marketing, operations, etc.

You should ideally learn from the annual reports of the companies and regularly track how these companies do innovate around their business processes, be it operation, be it logistics or manufacturing or HR It's important to analyze the outcomes and effectiveness of the results. If you are able to deliver products that the customers are happy with and with lesser cost then you are creating value for customers and generating good margin for your company

Integrate sustainability practices into your value chain analysis. Explore opportunities to reduce environmental impact by optimizing resource usage, recycling, etc.

Technology can be leveraged across all the functions and its the best linkage and build synergies across different functions. Also sharing resources within various departments make sense to reduce costs

Integrate sustainability practices into your value chain analysis. Explore opportunities to reduce environmental impact by optimizing resource usage, recycling, etc.

Embrace digital channels for marketing, sales, and customer support, enabling you to reach and engage with a broader audience without significant geographical constraints.

Firstly, the value chain model can be used to describe and enhance/optimize flow and effectiveness within the internal organization structure. These can be strategic changes to reduce cost over time, deploying six sigma and digital transformation products, and leveraging capabilities like ML and AI for optimizing operations. All these complement to value creation opportunity in the eyes of the customer. Secondly, we can use the industry-based value chain model (supplier-producer-distributor) and derive how much the operational stack has influence over other stack elements and what products and businesses could be created (or) expanded to gain strategic leverage over producer and distributor stacks in the value chain within the industry.

The internal value chain model breaks down how the primary and support activities will contribute to the margin. To innovate the current value proposition that is offered to customers, we need to integrate strategic elements from primary activities like sales & marketing, logistics, and operations to completely fulfill the customer jobs requirements within the value proposition canvas. Meanwhile, the support activities in the value chain can work on the current customer gains and pains (in the value proposition canvas) and translate them onto the internal primary activities for innovation.

The last sentence in this paragraph should not be underestimated. The Triple Bottom Line is very impactful and puts companies far ahead of their competition, especially in today's information abundant world where humanitarianism gets buy in and negative press can kill a company.

Analysing the whole chain is a way to link every function and activity to the customer's needs. It gives meaning to everyone's work by clarifying their contributions to the company's mission. It is also a way to balance the improvement efforts throughout the value stream, creating efficiency for the whole system rather than locally, which generates a real return on the improvement efforts.