Logo

    Articles

    Contributions et remerciements

    Contributions and Acknowledgments

    Politique de confidentialité

    LinkedInRSSInstagram
    Building the value chain
    ⛓️

    Building the value chain

    Catégorie
    3. Products & Services
    Sous-catégorie
    3.2. Value Chain Management
    Stade
    MVP

    ⬅️ Back to the guide

    What is at stake?

    🔥
    How to construct of an efficient value chain that aligns with the mission?

    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 improvement.

    Identifying these at the MVP stage makes it easier to guide the development of products and services and to find a product–market fit while integrating responsibility into core functions.

    Three actions to take right now

    1️⃣ Map the various stages of business activities

    • Distinguish between core activities and support activities (Porter model).
      • ‣
      Learn More

      Core activities are those direclty related to creating and delivering a product or service:

      1. Inbound Logistics: Receiving, storing, and distributing raw materials.
      2. Operations: Transforming raw materials into finished products or services, meeting deadlines and quality standards.
      3. Outbound Logistics (Sales and Distribution): Collecting, storing, and distributing finished products or services.
      4. Marketing and Sales
      5. Services: Providing after-sales customer support and assistance to increase or maintain product value (customer service, warranty, etc.).

      Support activities reinforce core activities:

      1. Human Resources: Managing personnel (recruitment, compensation, training, etc.).
      2. Infrastructure: Services necessary to the company's smooth operation (financial management, accounting, etc.).
      3. Procurement: Managing purchases and supplier relationships.
      4. R&D
    • Identify where value is created in your value chain (in the eyes of customers, what are the critical elements of the offer are in the eyes of customers?) and prioritize and optimize activities that create value, increase customer value.
    • Connect these activities with the company's mission.

    2️⃣ Build a Responsible Value Chain

    • Ensure responsible practices in the creation, manufacture, distribution, and marketing of your product/service.
      • ‣
      Example from Altermundi in the responsible fashion sector
      image
    • Outsource activities that don't create (or that even destroy) value to responsible partners.
    • Allocate resources to certain activities to gain competitive advantage.
    image
    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, allowing us to use 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 commitment to distinguish yourself from the competition.
    • Align your structure with a market related to sustainable development goals.
    • Inform stakeholders about ESG issues and raise awareness.
    • Identify diversification strategies linked to Sustainable Development Goals (SDGs).

    < Back to the guide

    image