Value chain mapping

Typically, the software is available as either enhancements to already available programs or standalone products specifically designed for value stream mapping. Benefits of using software[ edit ] While value stream maps are not overly difficult to construct, utilizing software can help speed up the process and simplify calculations [2] that help make up a completed map. These calculations include elements such as takt time, inventory, and value-add time.

Value chain mapping

LinkedIn Google Plus This is about my journey, from a newly-minted yet confused CEO caught like a rabbit staring helpless into the oncoming headlights of Value chain mapping - to being voted one of the most influential people in IT within the UK.

Focus on user needs Critical to mapping is to first focus on what the user actually wants. There are various techniques for this from writing the press release to creating a user journey.

In the case of the TV company, the users wanted to be entertained. You do this by creating a chain of needs. At the top of any value chain should be the visible user need you are trying to serve and below this are the increasingly Value chain mapping to the user components that are necessary to serve those needs.

Figure 2 below provides a value chain for the TV company. In this diagram both branded and aggregator sites need content. That content needs a distribution mechanism such as traditional media but it also has to be created, which requires artistic direction. Naturally, artistic direction needs a creative studio to make the show but it also needs market analysis; for example, what sort of programs do people want to watch?

And so the chain continues down to components such as compute and power. Create a map Value chains on their own are practically useless for understanding an environment because they lack any form of context on how it is changing.

If you think of a company such as Nokia, it started out as a paper mill, became a plastics manufacturer and then eventually a telecommunications company. During this time, its value chains radically altered. In order to understand an environment, we need to somehow capture this aspect of change and combine it with our value chain.

Templates and tasks

The biggest problem is that the process of change and how things evolve cannot be measured over time. As uncomfortable as it is, you have to embrace the uncertainty of future change.

Value chain mapping

So, this is what you need to do. All the components in the map are evolving from left to right due to supply and demand competition. As they evolve their characteristics change from an uncharted domain the uncertain, rare and constantly changing becoming more industrialised the known, the common, the stable.

For example, power supply is something commonplace and well understood. However, creative studios and the art of creating a TV show is less common and less well understood. Once you have a map, examine it.

In Figure 4, the content component of the TV company has an interesting distinction between creation and distribution; for example, there is a pipeline of content creation from commissioned shows to acquired formats along with separate distribution mechanisms such as traditional media and internet broadcast.

To make this distinction more visible, you can add a pipeline to the map — see below Figure 5. Challenge Three of the biggest issues within any organisation are bias, communication and duplication.

Duplication is rampant in most organisations because there is usually no means of effective communication within groups. One of the beautiful things about maps is that you can start to build up a portfolio of maps from different parts of the organisation and start to challenge this duplication and bias by sharing.

Maps give you the communication mechanism to do this. When you start getting good at this, you can even challenge your own maps against the outside market and other competitors. When you look at your map not every component will have a duplicate in the organisation.I think the key aspect of white space / future mapping exercise is to understand that part of this process is based upon belief (criteria to judge tomorrow) not measurement (criteria to judge yesterday) and it is managing the design pathways that come from these white space predictions for future value that can be structured, measured and reviewed once a belief goal is agreed upon.

Analyzing the Activities of a Firm

Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it.

Manufacturing, Logistics, Supply Chain and 27 some Service orientated Organizations. Step by Step Guide: An Example. Value stream mapping is a visual means to depict and improve the flow of manufacturing and production process, as well as the information that controls the flow of materials through the process.

It is the preferred methodology for identifying the inherent waste and losses within an operation. Value-stream mapping is a widely used lean-management method.

It is used mainly for analyzing the current state for the series of events that take a product/service from . Value Stream Map Template. This value stream mapping template comes with an entire suite of value stream mapping tools with features to help you Define, Measure, Analyze, Improve, and Control your value streams.

(not just draw them) Sample Value Stream Map example. IT is altering the value chains of just about every industry sector. Forward-thinking CIOs can use our mapping process to anticipate likely developments and provide a fresh perspective on your firm’s opportunities and challenges.

Value chain mapping
White Space Mapping – Seeing the Future Beyond the Core | Innovation Management