Enterprise competition It large data remodeling value chain

The competition among enterprises is the competition of the whole value chain. In an enterprise's many "value activities", not every link creates value, the enterprise's competitiveness usually comes from the value chain key link competitive advantage, but the big data age arrival, causes the enterprise to have the opportunity through the big data analysis to transform the value chain more link to the enterprise strategic superiority.

9 Basic link of value chain is still the key point of enterprise

The value chain theory was proposed by Harvard Business School professor Michael in 1985. "Every enterprise is a collection of activities in the process of designing, producing, selling, sending and supporting its products," Potter said. All of these activities can be indicated by a value chain. "The value creation of an enterprise is constituted by a series of activities, these activities can be divided into basic and ancillary activities, including internal logistics, production operations, external logistics, markets and sales, services, and ancillary activities, including procurement, technology development, human resources management and enterprise infrastructure. These disparate but interrelated production and management activities constitute a dynamic process of creating value, that is, the value chain.

Value chain is ubiquitous in economic activity, upstream and downstream affiliated enterprises and enterprises exist in the industry value chain, enterprise internal business units of the relationship between the enterprise's value chain, the business units within the enterprise also exist value chain link. Every value activity on the value chain will have an impact on how much value the enterprise will eventually achieve.

Porter's "Value chain" theory reveals that the competition between enterprises and enterprises is not only a certain link of competition, but the whole value chain competition, and the overall value chain competitiveness determines the competitiveness of enterprises. In Porter's words: "The value of the consumer's mind is made up of a series of internal material and technical activities and profits, and when you compete with other companies, there is a lot of internal activity competing, not a competition for an activity." ”

Porter's value chain theory is still playing an important role after more than 20 years of development, enterprises in the current global integration of the economic environment needs to fully understand the market, customers, products, regulations, competitors, suppliers, employees and other competitive elements, and Porter value chain involved in the 9 aspects of the Basic Agreement.

How does big data change the value chain?

With the advent and widespread adoption of large data, businesses around the world are looking for new ways to compete and win. They are constantly being transformed to make the most of the information available to improve decision-making and performance across the enterprise. A handful of leading companies have made it easier and more timely to make decisions at "impact points" by providing information, skills and tools to employees, including executives, marketing and shop workers.

From the point of view of value chain, the arrival of large data age, the enterprise has the opportunity through the large data analysis to the value chain more links into the strategic advantage of the enterprise.

In an example of this April CCTV's big data broadcast on the news Network: A small clothing business, with large data platforms that can deliver products directly from factories to users around the world, has increased sales in foreign markets by 70% over a year earlier, but transaction costs are only one-tenth of the past. This shows that the enterprise through a large data platform to make their original "market sales" this link has undergone a qualitative change: the past to sell goods abroad, to go through domestic exporters, foreign importers, wholesalers, shopping malls, eventually to reach the hands of users, and now can direct users.

Another typical case is Kraft: it captures 479,000 of the discussion information about Vegemite new products in 1.05 billion blogs, forums, and discussion editions by using IBM's large data and analysis program, and makes a deep analysis that ultimately completes the product upgrades efficiently. The case shows that the large data platform makes enterprises more competitive in the research and development process.

Fiat is also using big data and analysis to predict in advance who will buy a particular model of Fiat. It increased the response rate of the target customer by 15% to 20% by using IBM's large data solution, and customer loyalty increased 7%,54% 's customers still chose Fiat when they bought the second time. The case shows that the enterprise through the large data platform in customer service this link produced a qualitative change.

Large numbers undeniably mean many things to many people: it is no longer confined to the technical field. Today, big Data has become a business priority, because it can have a profound impact on business in the global integration economy. In addition to providing solutions to long-term business challenges, large data has inspired many new ways to transform processes, organizations, the entire industry, and even society itself. And from the point of view of the value chain is: the arrival of a large data era, so that enterprises have the opportunity to through large data analysis to the value chain more links into the strategic advantages of the enterprise.

Figure Note: According to a survey by the Oxford University School of Business and IBM, nearly half of the respondents said the goal of applying large data programs was to improve customer-centric experience, including operations optimization, financial optimization, risk management, employee collaboration, and innovative business models.