Before We Consider The Value Chain Model It Would Be Useful

1831 WordsMar 12, 20178 Pages
Before we consider the value chain model it would be useful to know that a value chain is none other than a supply chain. On the most basic level, value chains are a series of focused activities that advance a product or service toward an objective. It can be the actions of a single contributor in a workflow, but more typically, it refers to the orchestration of activities where many interrelated contributors provide inputs on a work in process (WIP) at specific times and locations. Likewise, activities can be quite precise and relatively limited, such as a sub-process, or the value chain can be an all-encompassing collective of every activity that a complex system may perform. Author and Harvard Business School Professor, utilized the…show more content…
Maintaining a customer-centric perspective should be maintained at any level – strategical or process level. And “customers, internal or external, are satisfied when their expectations…have been met or exceeded” (Krajewski, Malhotra, & Ritzman, 2016). Keeping the customer’s perspective is like having grease to keep the value chain running smoothly. Without it, a firm may save money in the short run, but will eventually pay some way or another in the long run. With the complexity of today’s healthcare systems, any changes made to business processes, revenue streams, legal and compliance laws, clinical therapies, outbreaks, natural disasters, or simply an improvement in technology, can disrupt the value stream. With the exception of, perhaps, clinical therapies and outbreaks, a healthcare system needs to be able to adapt to similar changes just as any other enterprise may. Thus, standardized business practices, methodological approaches, and disciplined decision making are at the core of managing a healthcare value chain. The delivery of the products and services of a healthcare entity may perhaps be of a much greater concern to its customers than another firm’s products and services; however, the perception of value will always be based on quantifiable terms of quality and utility regardless of the industry, with the exception being emotional or psychological impressions.

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