Abstract
Value-based management (VBM) is playing an increasingly significant role in shaping corporate strategies. Since the key mission of supply chain management (SCM) is to develop and deploy effective solutions to enable the flawless execution of corporate strategies, SCM should also adopt a VBM perspective. VBM-based SCM has therefore two intertwined dimensions, as depicted in Figure 2.1. On the one hand, VBM should enable value creation through product and/or process innovation, both of which should drive a customer’s willingness to pay (WTP). While product innovation may enable the deployment of niche strategies, process innovation may lead to new business models.1 In both cases, however, innovation plays a key role in differentiating a firm from its competitors and/or in avoiding the commoditization of its products and services.
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© 2016 Enver Yücesan
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Yücesan, E. (2016). Value-Based Management: The Guiding Principle for SCM. In: Competitive Supply Chains. Palgrave Macmillan, London. https://doi.org/10.1057/9781137532671_3
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DOI: https://doi.org/10.1057/9781137532671_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-55679-3
Online ISBN: 978-1-137-53267-1
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