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Essay / Value Delivery Network - 579
Value Delivery Network A value delivery network allows many companies to create customer value that cannot be created using the company's own value chain . A “value delivery network” is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system (Armstrong et al. 52 ). This type of system interests me because I have always been curious about what path a product or service must take to be considered “value” to a customer. Having piqued my interest during one of the case studies during the course, Accenture is a company that has improved the value creation network for many companies. Accenture has improved not only the value delivery system for the airline industry, but also its own global delivery system with its partner BT. Accenture saw the need to introduce e-commerce into the airline industry's range of services to its clients. E-commerce, as Accenture says; reduces costs, maximizes customer insights, allows targeting of certain distribution channels, differentiates products, builds long-term relationships and creates lifelong loyalty; all of this creates value in the delivery network (Stewart). E-commerce allows the airline industry to connect directly to its customers and to third-party electronic channels that provide value to customers in ways not possible in the traditional distribution cycle (Stewart). As a consulting firm, Accenture has not only improved the value delivery network for the airline industry, but also for its partner BT. By signing a 10-year, $575 million outsourcing deal with BT, Accenture has essentially expanded the geographic reach of services provided to BT. within the global market. Services provided under the new contract include customer contact/call center, recruiting, pension administration, payroll and benefits administration, performance management administration, health and security, as well as human resources consulting and information services. By outsourcing most of its services to Accenture, BT is improving its value delivery network by providing its clients with lower costs and higher quality services. As BT's Alex Wilson said, “Accenture HR Services has a proven track record of consistently high quality service and a true partnership approach. These are key factors in its selection, as well as its unrivaled ability to provide HR services on a global scale. This agreement will allow our staff to focus even more on the strategic role of human resources management as we grow our global business. » Just as Honda has outsourced all of its automotive mirror operations to Donnelly Corporation, which benefits both companies in terms of increasing performance and transmitting value to its customers (Armstrong et al..