In 1985, Michael Porter introduced the concept of the Value Chain: a process management tool. This concept describes all the activities performed by a company to deliver a product or service to its customer.
According to Porter’s definition, it is a strategic model that analyzes a company’s activities in two categories: primary activities and support activities. This distinction helps identify how each process contributes to value creation for customers and for the company as a whole.
And although the date confirms that the concept was first described many years ago, we could easily believe it was created and designed for today’s market needs. However, its approach has also been updated to reflect the current reality.
From this perspective, it becomes possible to understand how activities in both categories relate to one another, optimizing efficiency, reducing costs and, as a consequence, building a sustainable competitive advantage and generating more profit for the business.
This process management tool also describes and analyzes organizational activities from the perspective of customer value creation, identifying value-adding activities, costs, and opportunities for improvement.
In today’s episode, you will hear a conversation with Nicir Chaves — PhD Student, Master’s Degree holder, Specialist, Administrator, Accountant, Researcher, Professor, and Consultant in Governance, Management, Strategy, Transformation, Innovation, and Information Science. In addition, Nicir is the Founder of ABPMP Brazil, Founder and President of ABPMP Federal District, and Founder and President of the International Institute for Governance – iGOVi.