What Is a Value Web? (3)

Why this extension, and as some might say complication, of what used to be a very simple process? The answer is customer demand. Today’s customers base purchasing decisions on a variety of elements associated with the solution, including the physical product, associated services, and supporting information. Each of these factors is being considered throughout the customer experience life cycle, which ranges from prepurchase need identification to postpurchase support and satisfaction evaluation. Companies, understanding the complexities of the decision process strive to provide a comprehensive solution, yet at the same time realize that it would be impossible for them to provide each and every element of this solution in a profitable manner. Instead, all those various companies contributing the to automobile purchasing process, to stay with our example, form what can best be described as a cluster of providers, each aiming at the same customer.

As long as these contributing entities operate in isolation, we are indeed looking at merely a group or cluster of companies. Their only common ground is the customer whom they are pursuing for financial gain. To make the transition from a cluster to a true Value Web, these companies must become aware of each other and determine how to work together in providing the customer with a seamless experience. Working together, whether through formal or informal relationships, illustrates the central premise of the Value Web. Those companies that are able to coordinate and lead these webs of value providers are the ones that will capture a sustainable, competitive advantage. Companies that continue to operate in isolation are at risk of being pushed aside by those competitors who become part of the larger entity.

Taken From : Enterprise Guide to Gaining Business Value from Mobile Technologies