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Value Nets: Breaking the Supply Chain to Unlock Hidden Profits

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Publisher: Wiley
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"Value nets are digital powerhouses that fuel business results."-From the Foreword by Adrian Slywotzky

If you have ever ordered a computer over the Internet and been amazed that a product built to your exact specifications could arrive at your door within days, or if your business's competition is suddenly gaining share by delivering custom-designed merchandise faster and more reliably than you can, you need to read Value Nets. Enlightened managers around the world are learning that the supply chain can be a bountiful source of profitable growth, increased market share, and shareholder value. Value Nets: Breaking the Supply Chain to Unlock Hidden Profits shows you how to release the value hidden in supply chain operations through new digital networked solutions.

Value Nets introduces you to a new form of business design built around superb supply chain performance in the e-commerce world. This design enables any company to do far more with the supply chain than simply control costs. It provides a basis for true differentiation in the marketplace and gives you the power to deliver first-rate service and customized products to customers in ways that delight them and keep them coming back for more.

Using numerous powerful case studies and examples from companies that have adopted value net design-Gateway, Cisco Systems, Cemex, Biogen, Zara, and dozens more-the authors demonstrate how value nets bridge the gap between the executive culture of strategy and business reinvention and the operational world of procurement, manufacturing, and logistics. They introduce the new concept of value nets and offer compelling evidence of their outstanding results. They also explain the five elements of value net creation, supplying specific examples from companies that have built value nets and showing how the new design helped these companies achieve superior profitability and customer satisfaction.

Complete with an appendix that helps you think through the applicability of value nets to your company, Value Nets delivers everything you need to understand and implement this remarkable new business design. It captures the creativity of today's most effective business model and puts its power where it will do the most good-right in the palm of your hand.

As one of the world's premier corporate strategy firms, MERCER MANAGEMENT CONSULTING helps leading enterprises achieve sustained shareholder value growth through the development and implementation of customer-focused business designs. Mercer's thought leadership on the topic of value growth is evident in four agenda-setting books published in the past four years: Profit Patterns, The Profit Zone, Value Migration, and Grow to Be Great. The firm serves clients from twenty offices in the Americas, Europe, and Asia."Value Nets exposes the supply chain for what it really is--a strategic differentiator. Reading about the success of Apple Computer, Zara, et al., will convince you that the time to take action is now!"-H. Lee Scott, President and CEO, Wal-Mart Stores, Inc.

"Our experience is proof that the ideas presented in Value Nets work. Agile, networked operations help us deliver superb service to our customers and drive shareholder value as well."-James Mullen, President and COO, Biogen, Inc.

"Value Nets takes supply chain management to the next frontier. CEOs will find it extremely helpful in their quest to provide better service and reduce cost by meeting unique customer requirements."-William "Gus" Pagonis, Retired Lt. Gen., U.S. Army Executive Vice President of Logistics, Sears, Roebuck and Company

"Value Nets brings new concepts and a road map for competitive advantage to businesses in Latin America and other global markets where traditional supply chain thinking controls business design."-Julio A. Barea, President and CEO, Sara Lee Branded Apparel, Latin America Group


DESCRIPTION:

Binding: Hardcover
Dewey Decimal Number: 658.7
EAN: 9780471360094
ISBN: 0471360090
Label: Wiley
Manufacturer: Wiley
Number Of Items: 1
Number Of Pages: 288
Publication Date: 2000-04-14
Publisher: Wiley
Studio: Wiley


SIMILAR ITEMS:

• The Upside: The 7 Strategies for Turning Big Threats into Growth Breakthroughs
• Value Migration: How to Think Several Moves Ahead of the Competition
• The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow's Profits
• Enterprise Architecture As Strategy: Creating a Foundation for Business Execution
• Competitive Advantage: Creating and Sustaining Superior Performance


CUSTOMER REVIEWS:

Customer Rating:
Summary: Innovative
Comment: Enormous profits are hidden away in the supply chain, say the authors. You can find new value in the operating end of your business- how you handle orders, source components, build your products and get them to customers. The key to unlocking this potential profit is an entirely new business design, the value net.

The value net is a system driven by customer choice, not the company. Today's customers demand exceptional convenience, speed, reliability and customization. These objectives are difficult to achieve with traditional supply chain management. The value net combines recent advances in supply chain management and strategic thinking to deliver more flexibility, speed and customization. The value net approach begins with the goal of creating value for customers. It is demand-driven. This is a contrast to traditional supply chain management which is driven by manufacturing needs, or supply-driven.

This new business model is based on five key elements.
1. Value proposition: Determine what the company will offer to potentially profitable customers, in terms of convenience, speed, customization, etc.
2. Scope: Determine which activities need to be performed to meet these goals, and who will perform them. Consider outsourcing activities to others to add value and efficiency.
3. Profit capture: Determine how the company aims to earn a compelling return on shareholder investment. Break down returns from benefits offered to customers like superior service, creative solutions, and costs and assets.
4. Strategic control: Maneuver to protect the profit stream over time through sustainable competitive advantages. Control your brand reputation and your relationships with supply partners. Use innovative design to pass on low-cost products and services to customers.
5. Execution: Use human capabilities and digital technology to hold all the elements together. Cultivate a team oriented culture fully supported with digital technology.

Customer Rating:
Summary: Capturing value using a value net
Comment: Value Nets is an intriguing look at businesses that have revolutionized the way the do business by revolutionizing their supply chain. What is a Value Net? According to the author a value net "is a business design that uses digital supply chain concepts to achieve both superior customer satisfaction and company profitability". One of the main concepts of a value net is that it operates in parallel manner rather then a rigid sequential chain.

Value Nets have the following five main characteristics:

Customer-alignment
Collaborative and systemic
Agile and scalable
Fast flow
Digital

Value Nets builds on the work of The Profit Zone, which define five elements of a value-creating business design. These five elements are defined as follows:

Value proposition - a company's value proposition consists of products and services that add value to customers.
Scope - what activities are required to deliver the company's value proposition and who delivers them (internal or partner).
Profit capture - mechanisms that capture profit from the value proposition
Strategic control - elements that protect profits over time
Execution - operational excellence

Value Nets take the five characteristics of the value net and show case studies of how companies implemented value nets within the context of the five elements of business design listed above.

The models that this book lays out are quite useful for considering how a product or service is delivered. The case studies and example in this book are quite useful and cover several industries. Most of the examples relate to product companies, but the concepts can be applied to services companies as well.

This book is a interesting and useful read for business consider how to interact with partners, competitors, suppliers and customers in the digital age. I would recommend reading the Appendix Value Net Self-Diagnostic first because is a great intro to the book. If this book resonates well with you might also like How Digital Is Your Business and The Profit Zone (also from Mercer Consulting).
Customer Rating:
Summary: Gives A Framework of Digital Supply Chain
Comment: Merits: A systematic framework to understand how digital supply chain can apply to businesses. Good comparison with traditional supply chain (systematic vs. sequential). A few cases are detailed and insightful. For a fan of Mercer's Business Designs, it will be delightful to see how the authors fit the two together.

This book will be more readable if contents are cut by half. Many contents are repetitive. "The Profit Zone" is full of new ideas, "Value Nets" is filled with consultants' empty statements. Some cases only talk about what happened, but not why it happened and how.

I gave "The Profit Zone" five stars, "Value Nets" deserves only three.
Customer Rating:
Summary: Give This One A Pass
Comment: If you're interested in supply chain management issues or e-business, you won't find much here. It's mostly a rehash of the other Mercer Consulting Book, The Profit Zone. Very general in nature, there's not much new material here. Read The Profit Zone and leave this one in the bin.

Customer Rating:
Summary: read only if you have much time...
Comment: This book is not primarily about eBusiness, but about the application of general management knowledge (such as customer focus etc.) in an internet - enabled world. As such it does not present new concepts for eBusiness. It merely summarizes old and well known cases and makes them fit to the own model of 5 "elements of business design". The book might be nice for beginners to see what is possible nowaday's but of little help if you want to learn really new concepts. Last point: the content could well be condensed to fit on 100 pages, 4 repetitions of everything are really of little use.

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