Abstract
This talk will explore the use of value chain (or value "network") dynamics as a
lens for motivating, assessing, and implementing strategic decisions in
operations. In the domain of "motivating" operations strategy, I will use the
frame of "outsourcing traps," situations where decisions to rely on
"outside parties" for critical activities can lead the decision maker to become
unhappily dependent upon (and "trapped" by) his/her supplier. Through the use of
fact and fiction in aerospace and electronics value chains, I will explore the
concepts of corporate outsourcing traps, national outsourcing traps, and
personal outsourcing traps.
For "assessing" strategic operations decisions, I build on two research projects to consider the framework of value chain architecture. In the first of these, I will discus a case study of competition between Boeing and Airbus to explore the concepts of integral versus modular value chain architectures and a theory exploring how each might be optimal during different stages of an industry life cycle. The second case study uses the communications industry to explore the issues of open versus closed architectures (technological architectures as well as value chain architectures) and the strategic value chain design issues they raise.
For "implementing" strategic operations decisions, I will explore the concept of value chain roadmapping. Building on the concept and implementation of technology roadmapping applied with great success in the semiconductor industry, I will suggest that development of intertwined roadmaps of technology, business models, and public policies may yield a robust strategy implementation process that can utilize the architectural concepts referenced above. I will apply this framework to a case study of Tata Motors and the automotive sector in India.