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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

and

Environmental friendliness

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).

Inbound Logistics

Production Processes

Outbound Logistics

Marketing

Sales

Gather Organise

Select

Synthesize Distribute

Virtual Value Chain

Figure 2: Physical and virtual value chain

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