Virtual value chain

Rayport, J., Sviokla, J. (1996). Exploiting the virtual value chain. The McKinsey Quarterly, 1, 20-37. 

Virtual value chain The virtual, information-based equivalent of the value chain model where value is created by gathering, selecting, synthesizing, and distributing information. (From Harvard Business Review, Exploiting the Virtual Value Chain, J.F. Rayport and J.J. Sviokla, November-December, 1995)... 

From Rayport, J. F. and Sviokla, J. J., Exploiting the Virtual Value Chain, Harvard Business Review, Novem-ber-December 1995. 

Value-chain integrator In this model, businesses physically and/or virtually integrate with their customers value chains. 

Value-chain integrator In this model, businesses physically and/or virtually integrate with their customers value chains. This often involves taking over one or more of the functions that are currently performed by the customer to reduce... 

The strategy ofthe business has avital connection to the virtual service encounter. If the strategy is one of low service integration, then the business will not be delivering high levels of value-added service, but rather will deliver more standard service offerings. The service value chain network virtual encounter dimensions house the Web site and its visible interface. This interface offers customer touch-points whereby the customer may interact, and may seek (or demand) services from the business. 

In view of these kinds of data, the Chinese authorities have proved themselves quick studies. They understand very well how the rising private sector has taken up the slack from the legacy SOEs. In response, they moved virtually 180 degrees from their early hostility to private enterprise to robust policy support. It is also this support which is critical to China s movement up the value chain, and is the focus of the balance of this chapter. 

The product manager in a virtual enterprise handles the partnership, manages the value chain, human resources, suppliers, customers or the product lifecycle. He/she has an updated status of the virtual organization, can access complex statistics regarding the value chain, human resources, partnership or sales. The figure 4 illustrates the sales statistics provided to the product manager in HTML format. 

Virtual supply chain units— units that are not dedicated to certain physical locations providing digital products or providing digital value added or critical... 

The virtual, information-based equivalent of the value chain model where value is created by gathering, selecting, synthesizing, and distributing information. 

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