| Chapter 1: | Objectives, methodology, approach and definition of terms |
A Value Chain is hence positioned above the concept of the Supply Chain. It assumes the reality of a Supply Chain and focuses explicitly upon the generation of value for all involved parties (the company itself, customers and suppliers). It still represents, to a greater extent, a static system, but the (bilateral) information flow is often supported by modern IT systems.61 The approaches outlined above assume physical partners to be participants in the Supply Chain.
Virtual value nets62 originate due to the increasing usage of virtualization. The linear, physical Value Chain model has adjusted itself accordingly. This reformation reaches above the physical boundaries of a marketplace and into the global and fast-developing digital economy. With the introduction of the internet and the increasing role of technology as a catalyst of new strategies, companies find themselves confronted with new strategic requirements and management problems.63
The real-time information exchange and the interactive performance potential of the internet have changed the business environment to the point where it is now not only customers, but also other companies that have access to alternative products and services. New distribution channels are establishing themselves and leading to opportunities for optimizing value generation and simultaneously enabling interactions to become more transparent. The winners in these virtual value chains will be those who have faster access to information and resources, and can at the same time extract from this the suitable competitive and SC strategies.64
Because of this, the traditional physical alliance has developed itself into a virtual alliance, in which there are an increased number of possible SC partners who exchange information. The virtual Value Chain represents an alignment of market partners who work together as a unit, whereby each of them contributes, so to speak, a component of the value. The value-donating activities extend outwards from the supply-side in the form of the raw materials, incoming logistics and production procedures, right up to the demand-side in the form of outgoing logistics, marketing and sales.65