Paul Roberts has an interesting post on Value Chain 2.0: the use of Web 2.0 methodologies and platforms in value chain analysis, process redesign and supply chain management (SCM).
Value Chain 2.0 transformations actually predate Tim O’Reilly’s Web 2.0 term but this is largely hidden from non-domain experts. One reason why is the historical influence of engineering and mechanistic models on public perceptions of SCM. Logistics, operations and industrial economics all moulded Michael Porter‘s value chain model. Mainframe interfaces shaped SAP‘s materials management and enterprise resource planning systems. A climate of downsizing and recessions influenced how business leaders applied Michael Hammer and James Champy‘s business process reengineering. SCM has evolved yet the public perceptions remain.
There’s a broader context and history to Value Chain 2.0 that some Web 2.0 descriptions may not do justice to. Some of the more well-known examples: Eric von Hippel cast the die in The Sources of Innovation (New York: Oxford University Press, 1988) about 3M‘s ideation, innovation and new product development processes; von Hippel elaborated on discussions which occurred since the mid-1970s. SAP and other ERP vendors have had end-user case studies in conferences for over a decade. Dell‘s dotcom era choiceboard for consumers to customise their orders meant more efficient throughput and higher inventory turnover. Lego Mindstorms builds on decades of insights in constructivist learning and robotics. Procter & Gamble‘s Connect + Develop initiative reflects P&G’s expertise in brand development and consumer goods marketing, and leverages decade-long trends in knowledge management and information systems. This suggests a deep history or a path dependence to many ‘new new’ Web 2.0 cases and trends.
Perhaps Value Chain 2.0’s initial contributions are to make these initiatives more explicit to non-domain experts and to provide an accessible interface for consumers.