Porter's Value Chain Model:

                   

An Analytical Framework for Intermediation

 

     Michael Porter devised the model of the value chain to describe the flow of value from producers to consumers. This model also makes clear that there are many points of intermediation along the value change within and between companies collaborating in this networks required for production and distribution. The DRASTIC group believes that this model provides a conceptual framwork that remains valid even as many of the elements are being re-engineered exploiting e-commerce approaches. This is especially true as one works to understand intermediation in general, and disintermediation and reintermediation in particular.
     The major targets of disintermediation have been the Marketing and Sales activies, depicted in green. Several other functions have be targeted as well, especially service, shown in blue.

In this DRASTIC presentation of the Value Chain, we emphasizes the functions within Marketing and Sales.
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         Drilling down into the Marketing and Sales function, one sees the complexity of this intermediating function. These various components of intermediation have been developed to address one or more real intermediation needs. Understanding is an essential prerequisite for anyone devising new strategies for intermediation.


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