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New Post 9/15/2008 6:47 AM
User is offline Craig Brown
560 posts
www.betterprojects.net
4th Level Poster




value chain analysis 

does anyone here practice value chain analysis?

How, when and what results does it yeild?

 
New Post 9/15/2008 7:06 AM
User is offline Guy Beauchamp
257 posts
www.smart-ba.com
5th Level Poster




Re: value chain analysis 

Funnily enough just been researching this for an exam paper question.

I have never used it, never seen it used and briefly wondered how provable it would be anyway: the wikipedia entry for it gives the example of cutting a diamond adds value not dependant on just the cutting - but who how why what is this value and what material use would it be to subsequent analysis?

Besides, the definers of financial reality in an organisation (typically the finance dept) would have a different (and definitive by definition if you see what I mean) view anyway.

Guy

 
New Post 9/16/2008 3:56 AM
User is offline Craig Brown
560 posts
www.betterprojects.net
4th Level Poster




Re: value chain analysis 

Value chain analysis is usually applied at a stregic level, but can also be applied to processes.

One method I saw on a six sigma project was to colour code each box with a key to who the step added value for; shareholders, management, customers, compliance. In the example I saw about 1/3 of the boxes had no colour - and were thus redundant.

Value chain alaysis can also be applied to organsiational structures - which units are adding value and to whom. 

It's always important to realise there are more stakeholders than just shareholders and customers.

I think it was popular in the 80s and again in the 90's and I know the A list consulting firms still use it with large clients.  It's a part of enterprise analysis, not the whole picture.

I raise the topic because I have been thinking about it in a (business) SOA environment - every team needs to add avlue to their various customers. 

I have also been thinking about it in the context of requirements analysis - and how there are diminishing returns on effort as you move away from top level goals to detail specifications.

 
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