Industrial value networks

Industrial value networks. The combination of distributors, discrete manufacturers, industrial equipment companies, and logistics providers to service manufacturers, the building industry, and commerdal operations. 

This level of product tracking will slowly be applied to other industry value networks. For food and beverage, the focus will be a new chain of custody from field to fork. The solutions will focus on tracking manufacturing product transformation in drying and blending... 

The changes in the teleconununication service business model illustrate the need to cormect industry change variables with risk analysis of the competitive positioning of the company. The purpose of the analysis is to ejqrose whether larger threats or opportunities are about to arise from the power relationships between the industry value network actors. 

The value chain network includes the aspect of aggregating multiple customers and suppliers to logical location(s), which is an important aspect in industry value chain networks operating with hundreds and thousands of customers and individual sites. 

The specific value chain network is characterized in the following based on a value chain typology. Several authors developed typologies and characteristics to classify industrial value chains with focus on supply chain and production (Loos 1997 Delfmann/Albers 2000 Zeier 2002 Schaub/Zeier 2003, Meyr/Stadtler 2004). 

Supply chain processes are characterized by industry. The processes are very specific. As value chains are built, industries are coupled together to build extended supply chains. When industries focus on value-based outcomes, it is termed value networks. 

To make a value network, trading partners from different industries form a chain and link together to drive an end-to-end supply chain solution. These links are forged to provide a set of products or services for the end customer. For example ... 

The second shift Is disintermediation, or the change in the number and type of players In the value network. E-commerce enabled disintermediation and the creation of new business models. The changes in regulation in the U.S. telecommunications industry resulted in the redefinition of the structure of the value network. 

To illustrate these points, let s take a closer look at a specific industry—consumer products—and the dynamics of its nnderly-ing value network. The consnmer value chain is composed of many companies. It stretches from the consumer through a network of retailers, mannfactnrers, and suppliers. Other industries—transportation, third-party logistics firms, freight forwarders, and marketing agencies—play snpporting roles. It is not linear. Instead, it is a network of hnndreds of companies. Each company within the chain operates multiple supply chains. The industry has worked hard to be collaborative however, today few interactions are truly collaborative. They lack alignment and a win-win value proposition that can sustain the test of time. 

The rate of adoption will be driven by market volatility and the impact of slowing industry sector growth. The greater the margin pressure, the faster companies will adopt the practices of market-driven value networks. 

Figure 7. Automotive industry value added network (simplified schematic).

Today industry is seeking new pathways to competitive positioning and ways to driving business models forward. Currently, many models exist, and new additions like the e-services built around e-supply chain networks are increasingly targeting meeting customer needs. These models still lack a customerization (one-on-one business-to-individual-customer relationship) approach, and consequentlyneed further enhancements. Service value networks offer a comprehensive pathway towards enhanced competitiveness. 

The mechanisms underpinning these service value networks and their strategic measurement areas allow the industry and its management to cohesively move forward towards an enhanced competitive position—delivering a glocaf (global and local) solution. 

Hamilton, J. (2004a). Service value networks Value, performance and strategy for the services industry. Journal of Systems Science and Systems Engineering, 23(4), 469-489. 

The virtual service value network model discussed above may now be constructed into an operational model for the pharmacy industry. We use the Australian pharmacy industry for the discussion below. 

Figure 5 displays a global perspective of the industry and the capabilities required from a service value netwoik. Here a national data storage solution is to be developed that may be accessed by individual stores, store groups, store chains, or e-pharmacies. Development of such a service value network solution requires industry-wide information sharing, and will eventually lead... 

BUILDING SERVICE VALUE NETWORKS INTO THE PHARMACEUTICAL INDUSTRY... 

To empirically measure the necessary parameters needed to develop a cohesive service value network approach across the pharmacy industry, these four dimensions require measures. Tables 1-4 summarize the relevant measures. 

PHARMACY INDUSTRY SERVICE VALUE NETWORK DEVELOPMENT... 

Identified service value network dimensions may be utilized to research and deliver a new approach to developing industry-wide solutions within the services industries. The pharmacy industry in Australia has been used as the test bed for this service value network theoretical... 

The service value network is a smart business network solution for the pharmacy industry. It delivers a dynamic, highly competitive, agile set of solutions, which are projected to keep its business members in a strong position regarding its key potential domestic competitors like supermarkets, hospital chains, and medical services. These business sectors are all keen to enter the pharmacy marketspace, but they currently lack government approval and the market intelligence to compete directly. 

Hamilton, J. (2005b, July). Pharmacy industry—service value networks research. Australian Pharmacy Guild, 1-8. 

Service Value Networks Delivering Competitive E-Services by John Hamilton, addresses service value networks as a key pathway to establishing and likely retaining future strong competitive positioning within a service industry sector. He defines service value network as llie flexible delivery of a service, and/or product, by a business and its networked, coordinated value chains such that a value-adding and target-specific service and/or product solution is effectively and efficiently delivered to the individual customer. The procedure to research and develop a service value network is described. 

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