Glossary » virtual value chain analysis
virtual value chain analysis
a “virtual value chain” is a business model for the information services industry, developed by John Sviokla. The value chain starts with the Content provider, then goes to the Information Infrastructure for distribution and transactional support, and then to the Context provider supplying user interfaces and customer interactions (Content-Infrastructure-Context-Customer). It contrasts with a “physical value chain” of manufacturing-distribution-sales for traditional product companies.
An analysis of the virtual value chain examines what role a particular company plays within this chain, and if they are not currently providing information-based (e.g. internet-based) services, how they can transition to the information-based business model. Really, the virtual value chain merely provides a conceptual framework in which you’ll do a more traditional business-process-reengineering (BPR) analysis.