defined, based on the “Buyer Utility Map” framework (Table 1), (Chan Kim et al.,2000) and the “Value Chain Model” (Walters et al, 2000).
Purchase Delivery Use Supplements Maintenance Disposal
Customer productivity Simplicity Convenience
Risk Fun image
Table 1: Buyer Utility Map
The Buyer Utility Map is used as an integral part of the definition of Value proposition, trying to fill in as many cells as possible in order the value proposition to be concrete and complete. For each of these cells, an analysis is conducted to find out if the value proposition is in compliance with the customer value criteria, specifically according to Walters; security, performance, aesthetics, convenience, economy and reputation. 2. Design of production architecture: In this stage the production architecture (value chain) is designed, consisting of all the activities that have to be performed in order to deliver the value defined in the first stage.In this stage, research is in progress concerning the design, of not only value chains but value creating networks as well. For this purpose we use the combination of physical, Porter’s “Value Chain Analysis”(Porter, 1996), and virtual value chain (Fitzsimmons et al., 1998) (Figure 2). For this purpose we use the the “Value Chain Model” of Walters (Walters et al, 2000) and the “Strategic Value Creation Networks Framework of Jarillo (Jarillo, 1995).
Virtual Value Chain
Figure 2: Physical and virtual value chain