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Integrating Value Chains in Networking and Supply Chains: Insights from the Computer Industry

This document explores the evolution of value chains and supply chains in the computer industry from 1975 to 2000. It examines the interdependencies among key players like DEC, IBM, AMD, and Microsoft, highlighting the shift toward outsourcing, integrated logistics, and the emergence of dynamic organizational structures. It provides a comprehensive overview of essential business processes, including customer relationship management, demand management, and product development. The insights aim to help organizations navigate the complexities of supply chain collaboration and enhance productivity and efficiency.

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Integrating Value Chains in Networking and Supply Chains: Insights from the Computer Industry

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  1. Værdikæder i netværk ogplug’nplaysupplychainsJohn Johansen

  2. Computer Industry Structure – 1975 - 85 …… DEC Bunch IBM Microprocessors Operating System Peripherals Applications Software Network Services Assembled Hardware All Products All Products All Products All Products Fine, 2000

  3. Computer Industry Structure – 1985 - ? Microprocessors Operating System Peripherals Applications Software Network Services Assembled Hardware Moto AMD Intel Mac Unix Microsoft HP …… Epson Microsoft Lotus … Novel EDS AOL Microsoft … Dell IBM Compaq … Fine, 2000

  4. Internalproductivity External productivity Little awareness of Core-competence Core-competence Internalized production Outsourcing Integrated Logistics Production planning Functional/departmental coordination Collaboration in the Supply Chain Network Bureaucratic org. structure Dynamic org. structure Extended Enterprise View Intraorganizational Interorganizational

  5. Tier 3 Suppliers Tier 2 Suppliers Tier 1 Suppliers Tier 1 Customers Tier 2 Customers Tier 3 Customers Tier 3 Supplier End Customer Initial Supplier Tier 3 customer Managed Process Links Monitor Process Links Not Managed Process Links Supply ChainBusiness Processes Processes: • Customer Relationship Management - Key customers and performance level • Customer Service Management - Source of customer information • Demand Management - Balancing customer demand with firms supply capabilities (POS) • Order Fulfilment - Meet customers needs • Manufacturing Flow Management - MTO, ATO, MTS • Procurement - portfolio of suppliers, integration • Product Development and Commercialisation - Innovation, Time to market • Return Up stream Down stream Focal Company (Douglas M Lambert, Martha C. Cooper, 2000)

  6. Rooted and Footloos Operations

  7. Footprint Development Incremental , ad hoc decisions building a global network Market growth - add new site New market - add new site Emergent Network add site 2 add site 3 Start Up add sites 4..m More growth - add new sites site 1 close sites 6,9 & n add 3rd party a,b,c add sites o,p,q,r Network Optimisation Outsource or offshore Acquire competitor

  8. Samarbejde, synkronisering og fælles mål

  9. Konklusion?

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