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Value Chain Framework - Essay Example

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Companies should become more familiar with the definitions of metrics before selecting the metrics to make use of under each aggregate. All metrics are not equally important once…
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Value Chain Framework
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Download file to see previous pages The main changes are that at this value chain sophistication level, the company’s reliance on ERP for provision of Value chain support has been reduced and has initiated the utilisation of more BOB solutions for provision of more-advanced functionality. House-sourced technology tends to have been slightly increased within the stage as well. Here, companies develop specific applications for supplementing the core ERP functionality. Within this level, the amount of outsourced technology reduces the typically reduced functionality of some SCM SaaS solutions is deemed to be too functionally light, and on-premises BOBs are preferred. (Dua et al., 2011)
Despite investing for growth, companies are aware that the disruption potential at any time does not vanish. Many work towards improving their Value chains’ resiliency for this risk mitigation. The past year brought about disruptions of global-scale Value chain which impacted multiple industries, right from chemicals to semiconductors as well as electronics to automotive. Increase in demand uncertainty as well as much more complex global Value networks reliant on high-risk geographic zones placed added pressures on Value chains’ ability to deliver results that are predictable. The disruptions have even called into question if Value chains have become too lean, requiring an essential approach change. (Shoanen and Joseph, 2004)
In stormy times, as well as during the face of increasing risk and complexity, leading companies need more bearable, resilient Value chains which, support profitability and as well drive industry leadership. This necessitates that managers re-evaluate their Value network designs layout to ensure that they are made more resilient to future disasters. It may as well include designing products which, allow more flexibility in manufacturing and value, increasing long-term substitute sources of raw materials and logistics ...Download file to see next pagesRead More
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