1. Value Chains and Clock Speed
Bruce Hartman
Vish Hegde

2. PC industry value chain

3. Competing Olympic Rings: 3-D Concurrent Engineering
Recipe, Unit Process
PRODUCT
PROCESS
Performance
Specifications
Technology, &
Process Planning
Details, Strategy
Product Architecture,
Make/Buy components
Time, Space, Availability
Manufacturing System,
Make/Buy processes
VALUE CHAIN

4. 3-D Concurrency Model Example
Product
• Customer Needs
• Market Segments
• Product Architecture
1. Sourcing: Make/Buy
2. Partner Selection
3. Relationship Design
(spot, alliance, equity, etc.)
4. Logistics System Design
5. Inventory management Policies
6. Relationship Management
7. Value Chain Architecture
Process
Value Chain
• Mission Statement
• Operating Objectives
• Policies & Procedures
-Structural: Bricks, Tech, Org
-Infrastructural:
HR, Business Processes

5. Fine’s Clockspeed (1998) Approach
Double Helix Theory of Industry/Product Evolution
MODULAR PRODUCT
HORIZONTAL INDUSTRY
INTEGRAL PRODUCT
VERTICAL INDUSTRY
Fine & Whitney, “Is the Make/Buy Decision Process a Core Competence?”
PRESSURE TO
INTEGRATE
DIS-INTEGRATE
ORGANIZATIONAL
RIGIDITIES
HIGH-
DIMENSIONAL
COMPLEXITY
NICHE
COMPETITORS
PROPRIETARY SYSTEM
PROFITABILITY
SUPPLIER
MARKET POWER
TECHNICAL ADVANCES

6. Global Design Chain – Apparel industry

7. Global Design Chain – Apparel industry
Fit Sessions
Product Reviews
Video Conference
Factory
Product Specifications
Branded Wholesaler
Samples
Factory
Asian Agent
Internet
Specs. Received
Sample Status
Price Estimates
Product Specs. Sent
Sample Requirements
Factory