Process evolution value networks

Curran T, Keller G (1998) SAP R/3 Business Blueprint understanding the business process reference model, Prentice Hall, Upper Saddle River Datta S, Betts B, Dinning M, Erhun F, Gibbs T, Keskinocak P, Li H, Li M, Samuels M (2004) Adaptive Value Networks, In Chang YS, Makatsoris H, Richards H (eds) Evolution of Supply Chain Management. Kluwer Academic Publishers, Norwell, MA, pp 3-68... 

In the evolution, the vertical silos of supply become connected through horizontal processes. The most common horizontal processes are revenue management, sales and operations planning (S OP), supplier development, and corporate social responsibility (CSR). (This transition is covered in great detail in Chapter 5.) These horizontal processes become connectors for the end-to-end value network. They align the traditional supply processes of source, make, and deliver against a business strategy. When companies successfully build market-driven value networks, demand and supply volatility can be traded off bidirectionally... 

From 1990 to 1998, in the early phase of supply chain evolution, the supply chain pioneers focus was on the development of vertical processes. It was a zealous focus on optimizing vertical silo processes of make, source, and deliver. As a result, there was little cross-functional overlap and as a consequence, there was no way to orchestrate tradeoffs in supply chain execution. In the last five years, the focus on planning processes has shifted from vertical to horizontal. In addition, from an inside-out (within the organization) to an outside-in (from the external markets in to the organization) focus. Both of these shifts are fundamental to the building of market-driven value networks. 

As companies move forward in the definition of new processes, they will quickly realize that their supply chain systems are obsolete. Existing technology providers will fight this awakening, ft will be uncomfortable. Solving the problem is a revolution that cannot be tackled as an evolution. To build the effective market-driven value network, the supply chain will require a redesign. 

In the first three decades of supply chain process evolution, demand was primarily used vertically within a function. It was seldom used to stretch horizontally to align the value network. In the definition of... 

Compared with the box dimension and Horton dimension of drainage networks in six periods, the HI values of the simulated watershed keep reducing and the H(S) values of the watershed keep rising from the 1st to 6th period all the time. It reflects that there are some differences in the evolution process of drainage networks and the watershed which would deserve to be discussed in the future. 

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