Operational Values

 

 

 (click to enlarge)

 

There are two different types of Operational Values:

- Resources: All actual or potential assets (except cash) controlled by the organization, that can be exploited in the business processes. Resources compose the infrastructure of the Organization for performing its operations.

- Supplies: Incoming value from Sources, providing benefits to the Organization when performing its operations.

 

(click on the following elements for more details)

> Resources

(a way to compose the Infrastructure)

 

CONTEXT

Resources may be:

  • unique, rare or widely spread in the industry,
  • highly valuable or not in the industry,
  • easily imitable or not,
  • easily subtitutable or not,
  • ...

 

CONTENT

Resources may be:

  • tangible: land, buildings, equipment, machinery, stock of materials,
  • intangible: organization, technology, product portfolio, information, intellectual property, design, location, competences, skills, knowledge, methods, rights, relationship, access to supplies, brand, reputation, culture, innovation, management, alliances, equity assets, complementors...
  • human.

 

CONCEPT

Resources may:

  • be strategic assets or not,
  • be owned, rented or none,
  • be located at the organization site, source's site or target's site,
  • be exploited by the organization, by sources or targets,
  • be strongly or weakly controlled,
  • be bought or built,
  • be mostly exploited in the Market, Capture or Industry Super-Process,
  • be difficult or easy to build,
  • be difficult or easy to maintain,
  • be difficult or easy to exploit,
  • be difficult or easy to control,
  • require associated supplies to be exploited (ex: electricity for machines),
  • require a low or high level of maintenance,
  • improve, stay stable or deteriorate when exploited,
  • deteriorate when not exploited (perishable) or not,
  • be stable or unstable,
  • be in an exploitation phase, a building phase and/or a maintenance phase,
  • exist for current exploitation or for potential exploitation (ex: back-up machinery),
  • represent a core rigidity (preventing flexibility - ex: exclusive sourcing contract) or not,
  • ...

 

Link with Super-Processes

Resources are the outcome of the Industry Super-Process

(see Process Quadrant)

 

> Supplies

(a way to get the required Benefits)

 

CONTEXT

Supplies may be:

  • new or not for the organization,
  • unique, rare or widely spread in the industry,
  • similar or differentiated regarding other sources,
  • in an introduction, growth, maturity or decline phase,
  • part of a highly competitive market between sources or not,
  • part of a demand-driven or offer-driven market,
  • subject to a make-or-buy decision,
  • ...

 

CONTENT

Supplies may be:

  • Operational supplies (incoming goods and services)
  • Investments supplies (long-term assets)
  • Financial supplies (Securities acquired by the organization, or rights associated with debt or equity securities it issued1)
  • Labor supplies (new employees, and work performed by human resources),
  • be tangible or intangible,
  • be raw materials, intermediate goods, finished goods or services,
  • have tangible and/or intangible attributes,
  • ...

 

 CONCEPT

Supplies may:

  • provide benefits for the organization in terms of costs, technology, time-to-market, availability, image, features, standards, compatibility, customization, associated services, quality, reliability, innovativeness, customer relation, expertise, risk transfer, responsiveness, assurance,
  • be stand-alone or associated with other products from third parties,
  • be difficult or easy to procure, with regard to competition,
  • be difficult or easy to procure, with regard to availability,
  • be charged by the source (supplier) or not (contributor),
  • be standard or customizable,
  • be durable or nondurable,
  • need to be replaced or not,
  • be mostly used in the Market, Capture or Industry Super-Process, or all,
  • be used for the exploitation of a resource (ex: electricity for machines) or not,
  • be consumed, modified, incorporated or left unchanged through a process,
  • require little or large value added through a process,
  • involve low or high potential switching cost for the organization,
  • be supplied by one or several sources,
  • be beneficial for the business or not (ex: old TV sets that stores are required to take back);
  • ...

 

Link with Super-Processes

Supplies are one of the two outcomes of the Capture Super-Process

(see Process Quadrant)

 

1- Debt and equity securities can be seen as a stock of rights for future cashflows. When the organization pays the security issuer (coupons, principal or dividends), it actual buys back part of these rights.

 

 

 

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