In an increasingly global and competitive environment it has become imperative to transform the way we look at our value chain. Organizations today are experiencing fundamental changes that include shifts from:
- Mass Production to Mass Customization
- Make-to-Stock to Make-to-Order
- Simple ‘product delivery’ to ‘personalized experience and services,’ where the products are often bundled with ‘value-add’ services and unique experiences.
The competitiveness of companies becomes dependent on the overall effectiveness of their value chain. However, there is a pressure on the value chain to be redesigned and reengineered, keeping in view the frequent changes in market and customer demand. There is also a pressure to make the factories, business processes and business models more agile. Many organizations today have broad geographical spreads, and are not only multi-site but multi-country and continent, and often see a high degree of variation in specific customer requirements across geographies and regions. All these aspects have put new demands on the way value chains are designed and managed. Read more…
Author: Professor Chandan Chowdhury, Associate Dean and Executive Director of the Munjal Institute for Global Manufacturing at the ISB.
Source: This article is extracted from CII Mission Manufacturing.