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Value Chains and Clock Speed

Value Chains and Clock Speed. Bruce Hartman Vish Hegde. PC industry value chain. Competing Olympic Rings: 3-D Concurrent Engineering. Recipe, Unit Process. PRODUCT. PROCESS. Performance Specifications. Technology, & Process Planning . Details, Strategy. Product Architecture,

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Value Chains and Clock Speed

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  1. Value Chains and Clock Speed Bruce Hartman Vish Hegde

  2. PC industry value chain

  3. Competing Olympic Rings: 3-D Concurrent Engineering Recipe, Unit Process PRODUCT PROCESS Performance Specifications Technology, & Process Planning Details, Strategy Product Architecture, Make/Buy components Time, Space, Availability Manufacturing System, Make/Buy processes VALUE CHAIN

  4. Process • Mission Statement • Operating Objectives • Policies & Procedures -Structural: Bricks, Tech, Org -Infrastructural: HR, Business Processes Product • Customer Needs • Market Segments • Product Architecture 1. Sourcing: Make/Buy 2. Partner Selection 3. Relationship Design (spot, alliance, equity, etc.) 4. Logistics System Design 5. Inventory management Policies 6. Relationship Management 7. Value Chain Architecture Value Chain 3-D Concurrency Model Example

  5. INTEGRAL PRODUCT VERTICAL INDUSTRY MODULAR PRODUCT HORIZONTAL INDUSTRY NICHE COMPETITORS TECHNICAL ADVANCES HIGH- DIMENSIONAL COMPLEXITY SUPPLIER MARKET POWER PRESSURE TO DIS-INTEGRATE PRESSURE TO INTEGRATE ORGANIZATIONAL RIGIDITIES PROPRIETARY SYSTEM PROFITABILITY Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence?” Fine’s Clockspeed (1998) Approach Double Helix Theory of Industry/Product Evolution

  6. Global Design Chain – Apparel industry

  7. Global Design Chain – Apparel industry • Fit Sessions • Product Reviews Video Conference Factory Product Specifications Branded Wholesaler Samples Factory Asian Agent Internet • Product Specs. Sent • Sample Requirements • Specs. Received • Sample Status • Price Estimates Factory

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