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VALUE PROPOSITION

VALUE PROPOSITION. CUSTOMER VALUES. Valuenomics. A new road map for sector competitiveness. THE SYSTEM THE SCAN THE STRATEGY. Valuenomics Valuenomics is about trade from a sectoral or national perspective . While “ Valuemathics ” focuses on the primary

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VALUE PROPOSITION

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  1. VALUE PROPOSITION CUSTOMER VALUES Valuenomics A new road map for sector competitiveness THE SYSTEM THE SCAN THE STRATEGY

  2. Valuenomics Valuenomics is abouttradefrom a sectoral or nationalperspective. While “Valuemathics” focuseson the primary actors in the valuesystem -the firms-, Valuenomics’ focus is on the other stakeholders : the enablers, driversand factors

  3. Valuenomics Valuenomics is a new concept on tradedevelopmentand–promotion. It is designedfor business support organizationsandgovernmentalinstitutions. Focus is on understandingandenhancing“competitiveness”. Valuenomicsconsists of threeelements: A stakeholder mapping tool A competitiveness scan A sector strategy model

  4. Value . . . . . is the main determinant forcompetitiveness. Value is represented in the market offerings of a sector or country on internationalmarkets. This is the sector’s“valueproposition”. Value is createdbyvarious stakeholders in the value system . . . . . . .

  5. Value starts in……… ……. THE VALUE CHAIN The chain of activitieswithin a firmthat –based on comparative resources- createsvalueand leads tocompetitiveadvantages COMPETITIVE ADVANTAGES VALUE CHAIN COMPARATIVE RESOURCES

  6. ……. THE VALUE SET The set of valuechainsthatcometogether: suppliers, producers, distributors, retailers etc. – “ACTORS” VALUEVALUEVALUEVALUEVALUEVALUEVALUEVALUEVALUEVALUEVALUEVALUE CHAINCHAINCHAINCHAINCHANCHAINCHAINCHANCHAINCHANCHAINCHAIN

  7. ……. THE VALUE SYSTEM The mosaic of firms (ACTORS), business supporters (ENABLERS) and public institutions (DRIVERS) thatcontributetothe valueproposition of a country or sector VALUE PROPOSITION ……. THE VALUE SYSTEM The mosaic of - Firms/companies-ACTORS - Business supporters -ENABLERS - Public institutions- DRIVERS - Buyers/consumers- FACTORSthatcontributetothe valueproposition of a sector or country THE VALUESYSTEM THE VALUE SYSTEM

  8. The world of the ACTORS Actors performprimaryactivitiesthatcreatevalue: DESIGN MAKE SELL MOVE SERVE The comparative resources toperform these activities are the drivers forcompetitiveness of a sector or country in internationalmarkets

  9. TECHNOLOGY SUPPLIERS TRADERS BUYERS MATERIALS SUPPLIERS MANUFACTURERS WHOLESALE GROWERS MANUFACTURERS PRODUCERS RETAILERS ACTORS PRODUCERS MIDDLEMEN PACKERS PROCESSORS PROCESSORS DISTRIBUTORS PACKERS ASSEMBLERS IMPORTERS EXPORTERS

  10. The world of the ENABLERS The value system is more than actors alone. Behind the actors are the enablers-firms, organizationsandinstitutesthatprovide the necessary services in trade. The quality of these services depends on the enabler’scomparative resources.

  11. RECRUITMENT SERVICES FINANCIAL SERVICES RESEARCH INST CERTIFICATION TECHNOLOGY REGIONAL BSO’s SUPPLIERS BUYERS MATERIALS IMPORTERS SUPPLIERS MANUFACTURERS SECTORAL BSO’s WHOLESALE GROWERS MANUFACTURERS PRODUCERS RETAILERS ACTORS ENABLERS PRODUCERS MIDDLEMEN PACKERS FUNCIONAL BSO’s/ NGO’s PROCESSORS PROCESSORS DISTRIBUTORS PACKERS ICT SERVICES ASSEMBLERS TRADERS EXPORTERS KNOWLEDGE INSTITUTES LOGISTICAL SERVICES

  12. The world of the DRIVERS Behind the enablers are the drivers, the policy makers, public institutesandbodiesthatprovide the legalandinstitutionalframeworkfor the valueproposition of a country or sector. These drivers are the building blocksfor the “comparativeadvantages of nations”.

  13. CENTRAL BANK REGULATORY BODIES, AGENCIES RECRUITMENT SERVICES LOCAL GOVERNMENTS FINANCIAL SERVICES MINISTRY OF AGRICULTURE RESEARCH INST MINISTRY OF INDUSTRY CERTIFICATION TECHNOLOGY SUPPLIERS REGIONAL BSO’s BUYERS MINISTRY OF TRADE MATERIALS IMPORTERS SUPPLIERS MANUFACTURERS SECTORAL BSO’s MINISTRY OF TOURISM WHOLESALE GROWERS MANUFACTURERS PRODUCERS RETAILERS ACTORS DRIVERS ENABLERS PRODUCERS MINISTRY OF FINANCE MIDDLEMEN PACKERS FUNCIONAL BSO’s/ NGO’s PROCESSORS MINISTRY OF ECONOMICS PROCESSORS DISTRIBUTORS PACKERS ICT SERVICES ASSEMBLERS TRADERS MINISTRY OF PLANNING EXPORTERS KNOWLEDGE INT. AGENCIES INSTITUTES DONORS LOGISTICAL KNOWLEDGE SERVICES INSTITUTES TRADE SUPPORT INSTITUTE PORTS CUSTOMS

  14. CENTRAL BANK STANDARDS The world of the FACTORS REGULATORY BODIES, AGENCIES RECRUITMENT SERVICES LOCAL GOVERNMENTS DIRECTIVES FINANCIAL SERVICES MINISTRY OF PREFERENCES AGRICULTURE RESEARCH INST MINISTRY OF INDUSTRY CERTIFICATION INFLUENCES TECHNOLOGY SUPPLIERS CUSTOMER VALUES End users andconsumers complete the value system for a country or sector on internationalmarkets. Consumer behaviourand end user purchasingstrategies are the “acid test” for producers andvendorstoseewhethertheirvaluepropositionmeets the costumervalues. Hence, these factors are part of the value system. REGIONAL BSO’s TRENDS MINISTRY OF TRADE MATERIALS SUPPLIERS SECTORAL BSO’s MINISTRY OF TOURISM GROWERS MANUFACTURERS PRODUCERS END USERS DRIVERS ENABLERS FACTORS CONSUMERS MINISTRY OF FINANCE MIDDLEMEN FUNCIONAL BSO’s/ NGO’s MINISTRY OF ECONOMICS PROCESSORS PACKERS CONCERNS ICT SERVICES ASSEMBLERS LAWS MINISTRY OF PLANNING EXPORTERS KNOWLEDGE INT. AGENCIES BEHAVIOR INSTITUTES DONORS LOGISTICAL NORMS KNOWLEDGE SERVICES INSTITUTES TRADE SUPPORT INSTITUTE PORTS CUSTOMS REGULATIONS

  15. CENTRAL BANK STANDARDS REGULATORY BODIES, AGENCIES RECRUITMENT SERVICES LOCAL GOVERNMENTS THE VALUE SYSTEM DIRECTIVES FINANCIAL SERVICES MINISTRY OF PREFERENCES AGRICULTURE RESEARCH INST MINISTRY OF INDUSTRY CERTIFICATION INFLUENCES TECHNOLOGY SUPPLIERS REGIONAL BSO’s BUYERS TRENDS MATERIALS MINISTRY OF TRADE IMPORTERS SUPPLIERS SECTORAL BSO’s WHOLESALE MINISTRY OF TOURISM GROWERS MANUFACTURERS PRODUCERS RETAILERS END USERS ACTORS DRIVERS ENABLERS FACTORS MANUFACTURERS CONSUMERS MINISTRY OF FINANCE PACKERS MIDDLEMEN FUNCIONAL BSO’s/ NGO’s PROCESSORS MINISTRY OF ECONOMICS PROCESSORS DISTRIBUTORS PACKERS CONCERNS ICT SERVICES ASSEMBLERS TRADERS LAWS MINISTRY OF PLANNING EXPORTERS KNOWLEDGE INT. AGENCIES BEHAVIOR INSTITUTES DONORS LOGISTICAL NORMS KNOWLEDGE SERVICES INSTITUTES TRADE SUPPORT INSTITUTE PORTS CUSTOMS REGULATIONS

  16. Stakeholder mapping Toposition ACTORS, ENABLERS, DRIVERS and FACTORS in a stakeholder map, we use a bubblegraph in the following matrix. As anexample, we show the coffee sector in Tanzania in the next slide PUBLIC PRIVATE MARKETING POST HARVEST PRE HARVEST

  17. PUBLIC PRIVATE MINAG Ministry of Agriculture TPRI Tanzania Pest Research Institute TCB Tanzania Coffee Board MTIM Ministry of Trade, Industryand Marketing PA Port Authorities TACRI Tanzania Coffee Research Institute TCGA Tanzania Coffee GrowersAssociation (dormant) CBA Cherry Buyer’sAssociation FG Farmer Groups CU Cooperatives, Unions CA CafeAfrica TCA Tanzania Coffee Association TACOBA Tanzania Coffee BuyersAssociation MNF Multi National Companies TACRI TGCA MINAG CU FG LOCAL GOVERNMENTS CBA TPRI TCB CA MARKETING POST HARVEST PRE HARVEST TCA TACOBA MNC MTIM PA

  18. Valuenomics • For the next steps in the value system analysis, see • THE SCAN - A diagnostic tool toassess the competitiveness of a sector • This tool – the MRI-scan – assesses the comparative resources andvalueactivities of allthree types of stakeholders in the value system forinternationaltrade, Actors, Enablersand Drivers alike. See “THE SCAN”under VALUENOMICS at www.valuemagics.com • THE STRATEGY A step-by-steproad map forsector strategies • Thisroad map charts the tradeprocessand offers timelyandappropriatetrade support forexporters in eachphase of the export process. See “THE STRATEGY”under VALUENOMICS at www.valuemagics.com

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