Description: The value chain refers to the complete set of activities that a company undertakes to bring a product or service to market. This concept, introduced by Michael Porter in 1985, allows organizations to identify the stages where they can add value to their products, from conception and design to production, marketing, delivery, and after-sales service. The value chain consists of primary activities, such as logistics, production, marketing, and service, as well as support activities, including human resource management, technology, and infrastructure. By analyzing each link in this chain, companies can optimize their processes, reduce costs, and improve quality, resulting in a competitive advantage in the market. In an increasingly digitalized business environment, the integration of technologies such as artificial intelligence (AI) and automation has become crucial for maximizing efficiency and sustainability in the value chain. Additionally, financial management in the cloud (FinOps) has become an essential component for optimizing costs and resources, allowing companies to quickly adapt to market demands and consumer expectations.
History: The value chain concept was introduced by Michael Porter in his book ‘Competitive Advantage’ published in 1985. Since then, it has evolved and adapted to different business contexts, especially with the advent of digital technology and globalization. Over the years, companies have begun to integrate technological tools and agile methodologies to improve the efficiency of their value chains.
Uses: The value chain is used to identify and analyze the activities that generate value in a company, allowing managers to make informed decisions about where to invest resources and how to improve processes. It is also applied in assessing a company’s competitiveness in the market and identifying opportunities for innovation and continuous improvement.
Examples: An example of the application of the value chain is the case of technology companies like Apple, which optimize each stage of their chain, from product design to distribution and customer service, to maximize consumer satisfaction and profitability. Another example is the use of artificial intelligence in the logistics of companies like Amazon, which improves efficiency in product delivery.
