Value Chain Management: A Design Thinking Tool for Organizational Success

This paper explores the value chain management tool within the framework of design thinking. It delves into the information, activities, and learning derived from applying this tool, highlighting its strengths and weaknesses. The paper also examines the beginner's mindset as a complementary design thinking tool, emphasizing its role in fostering innovation and challenging traditional approaches. Through a critical analysis of both tools, the paper underscores their significance in driving organizational success and adaptability.

VALUE CHAIN MANAGEMENT
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Table of Contents
Introduction...................................................................................................................3
Value chain management.............................................................................................4
Beginner’s mindset.......................................................................................................7
Conclusion....................................................................................................................9
Reference list..............................................................................................................10
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Introduction
Design thinking can be termed as process of mitigating different problems
with the help of creative and innovative ideas (Glen, Suciu & Baughn, 2014). For this
study, specific tools for design thinking such as beginner’s mindset and value chain
analysis will be selected. In context to these tools, appropriate information, learning
from the module, activities, strengths and weaknesses will be discussed.
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Value chain management
Information
Value chain helps in understanding the different activities and their categories
in an organisation, which create a service or product when combined. It is possible to
analysis an organisation with the assistance of this tool and portrays its major
strengths and weaknesses (Bustinza et al., 2015). Therefore, one can ascertain the
unmet requirements of an organisation through this. These activities contribute value
and cost in the organisation’s deliverables. Value chain can be termed as an
important design-thinking tool. Its ability to emphasise on the chain activities that an
organisation follows to deliver its services or products is one of its major benefits.
Through this, one can gather a different perspective about a certain problem that an
organisation is facing.
Therefore, this enhances the quality of problem solving and organisations are
able to maintain their quality in processes. On the other hand, this can be also be
used to identify or detect the problems in the activity chain of an organisation.
Compared to other design thinking tools, value chain provides the opportunity to
determine and consider activities in the analysis, which are not visible to the
consumers (Mol, 2015). This segments the activities in to two segments, which are
support and primary. Support activities of an organisation generally include firm
infrastructure, procurement, human resource management, and technology
development. Further, primary activities involve inbound and outbound logistics,
operations, marketing, and sales.
Activity
We conducted an activity related to this design-thinking tool was to take a
piece of paper and construct the value chain of an airline company, Virgin. The initial
step of this activity was to identify the different endpoints of the company’s value
chain activities from the viewpoint of a user. After this, it was required to initiate a
backward evaluation and identify all the activities involved within the organisation in
a “step-by-step” approach. Further, enhanced details were provided for all the
different considered activities of the organisation. This analysis included activities
such as marketing and selling seats, luggage check-ins, flight, de-boarding,
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information system, HRM, and procurement in context to Virgin Atlantic. Further, the
activity involved constructing value chain of other companies such as Shell, Deckers,
and Woolworths.
What we learnt
One of the major things that we have learnt from this activity is that value
chain is an organisational tool rather than an individual. Further, this also shed light
on the various aspects and processes of the value chain. This tool can be stated as
highly useful for the improvement of an organisation in a certain industry. In my
opinion, this is because of its ability to identify the deviances or defects in the
separate activities of the organisation. It would also be easier for an organisation to
tackle the issues, as it only will have to focus on certain activities rather than a larger
framework. Therefore, it is also evident that the value chain supports decision-
making for an organisation for introducing and implementing the strategies in the
market.
Further, this tool provides an efficient representation of the journey map of an
organisation. In also learnt, that value chain supports in considering activities of an
organisation that are invisible to the customers. It provides a new perspective for the
different problems a company might face in its activities and journey. Therefore, this
activity has helped me in understanding the importance of a value chain and
provided me a clear perception of conducting the same for an organisation. In future
courses, I would be easily able to analyse activities of an organisation with the help
of value chain and determine its weaknesses and strengths effectively.
Critical analysis
Value chain analysis supports a company to shape its activities effectively to
deliver its products or services and attain goals effectively. According to Madudová
(2017), this design-thinking tool has the potential to educate an organisation with its
shortfalls and strengths in its activities. Therefore, with this understanding, it is
simpler for a specific company to establish an improvement plan. It can be stated
that this tool supports in enhancing the profits of a company. Further, flow of
operational activities is also improved through this analysis approach. This ensures
that the end user is delivered with the products at the appropriate time. Despite
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these advantages, this tool has some certain limitations. Donovan et al. (2015)
stated that this tool intends towards breaking down different activities or operations
into separate segments. This segmentation creates major inconsistencies in the
organisation’s overall vision and strategy. It is because value chain fails to determine
the relations between all the considered activities of the organisation.
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Beginner’s mindset
Information
Beginner’s mindset is the experiences, conceptions, and perspectives of an
individual towards certain things at the initial phase of a study or approach. Various
internal factors of an individual such as expertise, understanding, and experience
influence this mindset (Dosi, Rosati & Vignoli, 2018). This makes the perception of
an individual valuable for any kind of design thinking. However, an individual
viewpoint includes certain personal beliefs and assumptions, which can lead to
misconceptions or stereotypes. Therefore, with the help of beginner’s mindset, it
would be easier for an individual to avoid bias and approach design thinking through
fresh and newer perspectives.
Further, a strong link between beginner’s mindset and innovation can be
established. As it provides a fresh perspective, it is easier for individuals to assess
and question various pre-established theories, conventions, and archetypes with the
aim to attain new innovative solutions or ideas (Lee, 2018). The need for the new
innovative solutions of pre-established concepts is important, as there is a constant
change in various influencing factors such as technological landscape, reality, and
consumer perspectives or demands. Therefore, it can be stated that this design-
thinking tool can be highly profitable for any company that is operating in a constant
changing environment. This tool will encourage innovation and will support
modification of traditional practices by exploring new segments.
Activity
In the activity, we were asked to consider the pre-established strategies of a
selected organisation and further, analysis of the same based on the current
environment was done. This helped in determining the effectiveness of different
activities within the organisation and ascertains the modifications required in them.
After this, based on the organisation’s values and goals, the participants in the
activity were asked to formulate own ideas for strategies that would contribute to
their profits. Additionally, after chalking out the new ideas, the participants were
asked to determine the effectiveness of these ideas. Further, the participants were
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directed towards comparing and contrasting their own ideas with the pre-established
ones and choose the suitable ones for the company with proper justifications.
What we learnt
With the help of the above activity, it has been possible for us to understand
the concept and approach of beginner’s mindset. Through the learning of the
module, it can be determine that with the help of this tool, an organisation or
individual can yield fresh and innovative ideas and beak traditional conventions to
attain success. Additionally, it can also be stated that it has assisted me in
understanding the necessity of a beginner’s mindset. I believe that external and
internal factors in respect to an organisation are subjected to continuous change and
therefore, a strategy established at a certain point or time tend to become ineffective
in future. Due to this, traditional theories and concepts cannot be really relied upon
for achieving growth. Moreover, without a fresh perspective, it is impossible for an
individual to disregard old perceptions about specific aspects, which might influence
his or her decision-making. Therefore, this determines that a manager can safeguard
its company from uncertainties with the help of this technique.
Critical analysis
As discussed above, beginner’s mindset can be highly valuable in tackling
biased approach and thinking. According to Bosman (2019), this will benefit highly
from an organisational point of view and guide towards success through better
innovative practices. Further, this will also help different individuals such as CEOs of
leading companies to handle and adapt to different changes in the market.
Therefore, it can be stated that this tool enhances the level of agility and flexibility
within an organisation. Further, it also helps in rational decision-making for exploring
new segments in the market. Due to this, the chances of failure are less for the
organisation despite its approach in entering an unexplored market area. However,
this tool is highly ineffective for rigid organisations. Further, it is impossible for a
manager to have this approach at all times in decision-making and henceforth
requires appropriate transition, which is highly critical and complicated.
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Conclusion
From the above discussion, the importance of design thinking tools can be
understood. It can be stated that these tools have appropriate contribution to
innovation approach and corporate developments. Further, for this study, appropriate
information and learning about two specific design-thinking tools, value chain and
beginner’s mindset have been provided.
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Reference list
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Madudová, E. (2017). Creative industries value chain: The value chain logic in
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