Value shop
Encyclopedia
The value shop was first conceptualized by Thompson in 1967. A value shop is an organization designed to solve customer or client problems rather than creating value by producing output from an input of raw materials.
Compared to Michael Porter
's concept of the value chain
, there is no sequential fixed set of activities or resources utilized to create value. Each problem is treated uniquely and activities and resources are allocated specifically to cater to the problem in question.
According to the research of Charles B. Stabell and Øystein D. Fjeldstad, the value configuration analysis (1998), five main generic activities are carried out in the organization:
Value is created in the shop by several mechanisms allowing the organization to solve problems better or faster than the client. These are variables such as:
Some of the classical examples of Value Shops include management consultancies such as Boston Consulting Group
, Deloitte Touche Tohmatsu
and McKinsey. The Value Shop concept has also been applied to a number of other activities including Norwegian police investigations (e.g. Gottschalk, 2007) and the knowledge-intensive energy exploration business (Woiceshyn and Falkenberg, 2008).
Compared to Michael Porter
Michael Porter
Michael Eugene Porter is the Bishop William Lawrence University Professor at Harvard Business School. He is a leading authority on company strategy and the competitiveness of nations and regions. Michael Porter’s work is recognized in many governments, corporations and academic circles globally...
's concept of the value chain
Value chain
The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.-Firm Level:...
, there is no sequential fixed set of activities or resources utilized to create value. Each problem is treated uniquely and activities and resources are allocated specifically to cater to the problem in question.
According to the research of Charles B. Stabell and Øystein D. Fjeldstad, the value configuration analysis (1998), five main generic activities are carried out in the organization:
- Problem Finding and acquisition
- Problem Solving
- Choice of problem solution
- Execution of solution
- Control and evaluation
Value is created in the shop by several mechanisms allowing the organization to solve problems better or faster than the client. These are variables such as:
- The organization is in possession of more information about the problem than the client
- The organization is specialized to deal with the problem at hand with specific methods to cover analysis
- Strong expertise with expert professionals is available.
Some of the classical examples of Value Shops include management consultancies such as Boston Consulting Group
Boston Consulting Group
The Boston Consulting Group is a global management consulting firm with offices in 42 countries. It is recognized as one of the most prestigious management consulting firms in the world. It is one of only three companies to appear in the top 15 of Fortunes "Best Companies to Work For" report for...
, Deloitte Touche Tohmatsu
Deloitte Touche Tohmatsu
Deloitte Touche Tohmatsu Limited , commonly referred to as Deloitte, is one of the Big Four accountancy firms along with PricewaterhouseCoopers , Ernst & Young, and KPMG....
and McKinsey. The Value Shop concept has also been applied to a number of other activities including Norwegian police investigations (e.g. Gottschalk, 2007) and the knowledge-intensive energy exploration business (Woiceshyn and Falkenberg, 2008).