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No. of Recommendations: 5
TMF has seemed to shy away from discussing Value-Chains! Why is that??? According to Geoffrey Moore's many books, Value-Chains are the most important factor in producing Shareholder Value, and GORILLAs!!! It would be further extremely helpful if TMF would spend some time guiding us amateurs on how to do Value-Chain Analysis. I have examined the FAQ without success!

Many times investors are glibely advised to evaluate a companies' 'Value-Chain' to see how strong it is -- even Geoffrey Moore's books endlessly describe and talk about VC, but present only a two dimensional generic model, while in reality they have multiple dimensions. A more realistic model, process and/or theory of how to do this is certainly sorely needed.

The most concise definition of a value-chain, that I have found, is that on page 108 of Moore's "Living on the Fault Line":

"Value chains are voluntary alliances of product and service providers coming together to provide a complete offering to a given set of customers."

He also points out on page 116 that these "value chains are self-organizing systems" so we must be able to modify our model, process, and/or theory to suit and be able to include the third parties who make up the discretionary resources that follow and make one value chain more varied, complete and more cost-efective than it's competitors.

Therefore we need to be able to define first, all the members of it, including the set of customers. Every participent in a value has a 'marriage' or multiple marriages -- each resulting in offspring or consequences. What is needed is something like a genealogy program, but even more powerful. Also, each member of a value chain has a different relative strength to add to the VC. And like today in everyday life, we have to provide for the effect of 'divorces' in the VC.

Is there any help, for us investors, out there in the hills??? Or is this just a concept that we can not really nail down enough for analysis?

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