Value Chain

What is a Value Chain?

A sequence of actions that add core value to your customers and business.

They are comprised of what Michael Porter (1985) described as “primary” activities and “supporting” activities. The Enterprise-wide Business Process Value Chain describes a way of looking at the chain of activities (processes) that provides value to the customer. Each of these activities has its own performance objectives linked to its parent business process. Primary processes can move across functional organisations, across departments, or even between enterprises and provide a complete end-to-end view of value creation. Primary activities are those involved in the physical creation of the product or service, marketing and transfer to the buyer, and after-sale support referred to as value-adding.

Further Resources: 

Read our guide to building an overview of a manufacturing value chain

Source: Business Process Management Common Body of Knowledge (BPM CBOK, 2009), The Association of Business Process Management Professionals

Gabriela Delgado

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