Value chain

A value fabric is a mesh of interwoven, cooperating organizations and individuals collectively called parties. The value fabric shows the interaction among collaborating parties.

Back in the first week of August 2014, we covered a series of blogs that discussed how OSS can provide supply chain differentiation and competitive advantages. Following this series, Evan Linwood suggested to have a closer look at the work of John Reilly on value fabrics.

John’s link above shows the similarities and differences between value chains and value fabrics. It’s definitely worth a read! In a nutshell, he describes the modern interactions of supply partners and customers as being a tightly interwoven mesh, as opposed to a set of sequential activities.

John states, “While proprietary models are a step in the right direction, standard, industry-wide and agnostic models are preferred, such as those provided by TM Forum. The models should also be accompanied by an application framework, an integration (interface) framework, and a metrics framework, as well as best practice guidance, such as how to enter into service level agreements with multiple parties.”

If an organisation’s unique value fabric can indeed be accommodated within an industry-wide agnostic model then I wonder if differentiation and competitive advantages might be diminished?

Either way, the value fabric does represent the more complex processes used by CSPs today. The major takeaway for the OSS industry is that workflow engines that only handle sequential processes won’t adequately facilitate the complex needs of their customers.

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