What is at stake?
Why is it important?
The value chain is an analytical model (theorized by Porter) that breaks down a company's activities into different stages, aiming to identify sources of value creation and areas for improvements.
By identifying them at the MVP stage, it becomes easier to guide the construction of products and services to find a product-market fit while integrating responsibility issues into core functions.
3 actions à mettre en place dès maintenant
1️⃣ Cartographier les différentes étapes de l’activité
- Differentiate between core activities and support activities (Porter model).
- Inbound Logistics: Receiving, storing, and distributing raw materials.
- Operations: Transforming raw materials into finished products or services, meeting deadlines and quality standards.
- Outbound Logistics (Sales and Distribution): Collecting, storing, and distributing finished products or services.
- Marketing and Sales
- Services: Providing customer support or assistance after the purchase to increase or maintain product value (customer service, warranty, etc.).
- Human Resources: Managing and overseeing personnel (recruitment, compensation, training, etc.).
- Infrastructure: Services necessary for the company's smooth operation (financial management, accounting, etc.).
- Procurement: Managing purchases and supplier relationships.
- R&D
- Identify where value is created in your value chain (where the critical elements of the offer are in the eyes of customers) and prioritize activities that create value to optimize them and increase customer value.
- Connect these activities with the company's mission.
Core activities are directly involved in creating and delivering a product or service:
Support activities reinforce core activities:
2️⃣ Build a Responsible Value Chain
- Ensure responsible practices in creating, manufacturing, distributing, and marketing your product/service.
- Outsource activities that don't create value (or destroy value) to responsible partners.
- Allocate resources to certain activities to gain a competitive advantage.
Value Chain Coherence — The primary benefit rests on customer trust and engagement. They perceive our brand as consistent across its production, delivery, and communication. For instance, our products can fit into a mailbox, enabling us to utilize postal services rather than adding delivery trucks to the roads. When everything is aligned, the community becomes highly engaged.
Thomas Arnaudo, Cofounder @ 900.care
3️⃣ Adapt Your Responsible Business Strategy to Stand Out in the Market
- Communicate your commitments to differentiate yourself from the competition.
- Align your structure towards a market related to sustainable development goals.
- Inform stakeholders about ESG issues and raise awareness.
- Identify diversification strategies linked to Sustainable Development Goals (SDGs).
📚 Resources and further reading
📖 Porter's Value Chain
Porter's value chain provides a clear view of key expenditure areas and sources of value creation. It allows distinguishing activities that generate value from those that generate little or even destroy value.
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