Why Porter's Model No Longer Works
So I delivered a pitch this week at International Payments Summit 2012, in London. Part of the pitch was that Value Chains are dead. I was taken to the side immediately afterwards by a number of bankers who disagreed - so this is my response..... source: http://b logs.hbr.org/cs/2012/02/why_porters_model_no_longer_wo.html Essentially the article says: Most existing big organizations, the 800-pound gorillas, subscribe to Michael Porter's value chain framework (as we were taught it on our MBA programmes). This model optimizes for efficient delivery of a known thing. Organizationally it means Z follows Y, which follows X. It carries with it one fundamental assumption: that customers are tangential to the process. Which is different from where we are today where supply chains have given way to customer "data" eco-systems and there is no customer on the end. Control has been given up. At the end of the old thinking is now who is offering you terms? The diagram a