Value creation architecture

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The design of the value creation architecture of a company is part of the corporate management function organization . In addition to processes ( workflow organization ) and structures ( organizational structure ), architectures are the third element of organizational design (cf. Bach et al. 2012). The value-added architecture defines what the division of labor looks like in an industry and how the value-added activities that are performed based on the division of labor but are logically related are coordinated (cf. Jacobides / Billinger 2006).

In the scientific literature, business systems (cf. Hungenberg 2011), value constellation (cf. Normann / Ramirez 1993) or value system (cf. Porter 2010) are also used in this context. All of these approaches come from the thematic area of strategy . In the past, however, little attention was paid to the value-added architecture in classic organizational theory. Ultimately, however, the value-added architecture has a bridging function between the strategy and the processes and structures (cf. Bach et al. 2012).

Design of the value-added architecture

The first step in designing the value-added architecture (cf. Bach et al. 2012 below) is the analysis of the industry architecture, which includes all the value-added activities required to generate benefits in the industry and the interfaces between these activities. In the textile industry these are z. B. - in a simplified form - the activities of design, production of fabrics, production of clothing, distribution and retail as well as the associated interfaces (cf. Müller-Stewens / Lechner 2011).

On the basis of this industry architecture, which can only be influenced to a very limited extent, every company that wants to operate in the respective industry must ask itself which strategic positioning should be chosen. Based on Heuskel (1999), the following alternative strategic positions are available:

• Integrator : All value creation activities are covered by the company (in the textile industry for example Benetton)

• Layer Player : Specialization in one or a few value-added activity (s) (in the textile industry, for example, fashion designer)

• Orchestrator : Specialization in a few value-added activities and integration of specialists for the activities not covered by the company (in the textile industry, for example, Steilmann)

On the basis of the chosen strategic positioning, it can be derived which value-added activities are to be carried out (“make”). If the elements not provided in-house are standard activities or products for which there is an (intermediate) market, this can be used (“buy”). However, if there is no suitable market or if closer coordination is to take place, a suitable network partner must be found and a cooperation relationship must be established (“cooperate”). In total, the outsourcing or insourcing of value-added activities and the design of the interfaces (make, buy or cooperate) result in the company's value-added architecture.

literature

  • N. Bach, C. Brehm, W. Buchholz, T. Petry: Value-added organization: Architectures - Processes - Structures. Wiesbaden 2012, ISBN 978-3-8349-2537-4 .
  • D. Heuskel: Competition beyond industrial boundaries: the start of new growth strategies. Frankfurt am Main 1999, ISBN 3-593-36143-4 .
  • H. Hungenberg: Strategic Management in Companies: Objectives - Processes - Procedures. 6th edition. Wiesbaden 2011, ISBN 978-3-8349-3413-0 .
  • MG Jacobides, S. Billinger: Designing the Boundaries of the Firm: From “Make, Buy, or Ally” to the Dynamic Benefits of Vertical Architecture. In: Organization Science. Vol. 17, 2, 2006, pp. 249-261.
  • G. Müller-Stewens, C. Lechner: Strategic Management: How Strategic Initiatives Lead to Change. 4th edition. Stuttgart 2011, ISBN 978-3-7910-2789-0 .
  • R. Normann, R. Ramirez: From value chain to value constellation: Designing interactive strategy. In: Harvard Business Manager. Vol. 71, 4, 1993, pp. 65-77.
  • ME Porter: Competitive advantages: Achieve and maintain top performance. 7th edition. Frankfurt am Main 2010, ISBN 978-3-593-38850-2 .