Creating and Modeling a Value Chain

This topics describes the procedure to create and model a value chain.

A value chain is a chain of activities that give a product more added value than the sum of added values of all activities. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. Companies need to model value chains to better understand and find out how the activities in their value chains and related factors influence their key decisions. Value chain activities help companies to develop competitive advantage, create shareholder value, and to separate the business system into a series of value-generating activities referred to as the value chain.

1. Select a starting point and select (Value Chain Model) to create a value chain model. The Untitled Value Chain Model - Value Chain Model window appears.

   Note:
   You may choose save the value chain model at this point to model the value chain later or model the value chain as specified from Step 2 through Step 10 and then save it.

2. From the toolbox, drag the Value Chain Unit and drop it on to the model editor. To view the toolbox after it is closed, click (Options) and select Toolbox. A value chain unit is created.
3. Repeat step 2 to create as many value chain units as required.
4. From the toolbar, select (Connector) and select any two required value chain units to connect them. Alternatively, press the Ctrl key and select the two value chain units. The value chain units are connected.
5. Right-click a value chain unit and select Properties. Alternatively, double-click a value chain unit. The Value Chain Unit- Value Chain Unit Properties pane appears.
6. Set the properties of the value chain unit.
7. Use the below options to add an annotation to the value chain model or to a construct in the model.
   1. Drag (Text) to the value chain model to add an annotation that comprises a border and a background color.
   2. Drag (Text Annotation) to a construct to add an annotation that can be linked to a construct.
   3. Drag (Transparent Text) to the value chain model to add a transparent annotation.

      Note:
      To set the properties of an annotation, right-click it and select Properties to open the property sheet of the annotation, and set the text to be displayed and the font size of the text.

8. Right-click in the modeler and select Properties. Alternatively, or double click in the modeler. The Untitled Value Chain Model - Value Chain Model pane appears.
9. Enter appropriate information in the General and Annotation tabs.
10. Click to save the value chain model.

You have successfully created and modeled a value chain.

A Sample Value Chain Model