Value Chain Analysis - Amazon Simple Storage...

2014 Annual Conference: Cultivating eBusiness for Global Success

Value Chain Analysis

November 11, 2014

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Value Chain Work Session

Purpose: Lay the foundation for you to independently determine:

• The marketing potential of products/activities which depend

upon other organizations and companies

• The value-add different types of products, services and activities

your individual company or organization can provide

• Considerations in bringing an multi-org solution to market

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• Specializing in market strategies

– Across the Market Life Cycle

– Innovation strategies

– Integration strategies

• Focus on how to increase market adoption of precision ag


Traditional Value Chain – Michael Porter

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Value Chain vs. Supply Chain

Supply Chain:

• Objective: Manage the flow of parts and products from suppliers

to consumers.

• Focus is on balancing cost of materials, quality, efficiencies , and

time to market

• Key Steps

• Planning and designing a product to meet consumer demand

• Sourcing the materials or components needed to produce the goods

• Manufacturing the product

• Delivering the product to the buyer

• Accepting returns of defective products

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Value Chain vs. Supply Chain

Supply Chain Evolving Value Chain

Primary Focus Cost of Materials &

Efficient Delivery

Adding additional value to

the customer

Market Direction Mostly Push Mostly Pull

Cares About Status Quo New offerings to the

market

Marketing Focus Outbound Inbound & Outbound

Trade Off Priorities Costs; Time to Market Getting the right solution

Differentiation

Sales Products & Services Integrated Solutions

Innovation Costs Differentiation

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Example: Ag Solution Value Chain

Harvesting ShippingBulking,

Cleaning,

Grading

Trade Retail

Processing

&

Packaging


Why Should We Care?

Primary focus in value chains is on the benefits that accrue to

customers, the interdependent processes that generate value, and

the resulting demand and funds flows that are created.

Effective value chains generate profits.

Value Chain analysis can open up new market opportunities.

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The Integrated Solution Value Chain

The integrated solution value chain is made up of

separate companies, organizations and alliances

who collectively create the products and services

that generate value for the customer.

Product Service Support

Complex Systems Market Model


Soil MapsSoil

Sensors

Weather

StationsYield Maps

Pumps,

Pivots,

Controllers

Farm

Practices

& Results

DSS

Growers


Legacy

EquipmentFarm Data Offsite Data

Growers


Integration Platform

Legacy


Growers


Soil MapsSoil

Sensors

Weather

StationsYield Maps

Pumps,

Pivots,

Controllers

Farm

Practices

& Results

DSS


Legacy


Growers


Applied Solutions Architecture

Technology Architecture

Soil MapsSoil

Sensors

Weather

StationsYield Maps

Pumps,

Pivots,

Controllers

Farm

Practices

& Results

DSS


Legacy


Growers




Soil MapsSoil

Sensors

Weather

StationsYield Maps

Pumps,

Pivots,

Controllers

Farm

Practices

& Results

DSS

Consulting and Integration Services


Legacy


Growers




Soil MapsSoil

Sensors

Weather

StationsYield Maps

Pumps,

Pivots,

Controllers

Farm

Practices

& Results

DSS

Consulting and Integration Services

Solution Sales


Legacy



Steps in the Integrated Value Chain Exercise

1. Define the ideal customer experience, their needs and where you

can add value

2. Identify the core processes in your Value Chain

3. Identify the key actors and their activities in each part of the

value chain

4. Identify how products and services flow through the value chain

5. Identify where each actor can add value/extract revenue

6. Identify key constraints and potential solutions

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Irrigation Experience for Growers

Inspect/check

Irrigation equipment

Initiate Irrigation Plan

Harvest & Sell

Consider changes for next

season. Execute feasible

improvements during

downtime.

Evaluate &

report results

Plan my crops

and develop an

irrigation

strategy

Prepare FieldsDesign

Irrigation Plan

Make application;

Evaluate & adjust

Understand compliance

requirements

Identify irrigation footprint,

management zones &

hardware capability

Document potential

improvements to irrigation

strategy (ongoing)


Crop plan

Crop information

Irrigation water requirements

Ground water availability

Surface water availability

Irrigation economics

Historical irrigationrecord

Irrigation system set up and configuration

Performance specifications

Troubleshooting (limited)

Water: amount applied

Water: where & when applied

Chemicals: amount & where applied

Harvest Yield

Energy Used

Equipment location & status

Current weather conditions

Weather forecast

Irrigation schedule

Irrigation placement

Operations

Irrigation Record & Reporting

Planning

Asset Manage-

ment

Irrigation Information Needs


Data Collection

Data Management

Data Analysis

Content Creation

Rx Use and Reporting

Pivot

Configuration

Storage Field specific

analysis

Irrigation

Prescription

Amount

Applied

Soil Moisture Storage/Retrieval Forecasting Recommendation Where Applied

Weather Storage/Retrieval Forecasting Alerting Adjustments to

Prescriptions

Historical Storage/Retrieval Trending Reporting Best Practices

Step 2: Identify Steps in Core Value Chain


Develop

Market

Offering

Supply

Chain

Readiness

Market

Readiness

Dealer

Readiness

Our

Company

Limited

Partner-

ship

Value-

Add

Partners

Trainers

Consult-

ants

Ag

Exten-

sions

Mktg

& PR

Agents

Sales

Dept.

Step 3: Identify & Map Key Actors


Step 4: Describe how products & services flow

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Actors

Product

and/or

Services

Resources

Expertise


Step 5: Identify Value Add Products & Services

Individual Component

Solution Integration

Production Installation

Value

Added$2K: Data

Ware-

housing

$5K: S/W

Integration$3K: H/W

Integration

$6K: Install

Services

Starting

Value$40K $42K $47K $50K $56K


Constraint Action Plan

Ag Extension Agents Unaware

PR & Training: Get Agents to become Champions

Growers Perception of High Risk with Change

Testimonials, Case Studies, Develop podcasts and

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Step 6: Identify Constraints & Actions

Market

Readiness

Dealer

Readiness

Constraint Action Plan

Lack of training on integrated solutions

Develop cross-company, solution-wide training

Reward system favors individual component sale

Change the reward system so they sell higher-value solution


Value Chain Success Factors

• Consumer (Grower) Insights• Targeted solutions by segment

• Strategic Alignment on How You Will Compete & Succeed• Market Strategy & Value Proposition

• How you will make revenue

• Capabilities you need

• Up and down information flow

• Trust • Interdependence

• Competence

• Commitment

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Thank You!

[email protected]

Portland, Oregon

360-904-0968

mailto:[email protected]

Value Chain Analysis - Amazon Simple Storage...

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