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Value chain analysis

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Fig. 1.2.4/1

The value chain illustrates the importance of recognizing the difference between primary activities and support activities. The primary activities of an enterprise:

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Fig. 1.2.4/2: Primary Activities

  • inbound logistics,
  • operations and production,
  • outbound logistics,
  • marketing and sales,
  • services (maintenance).

Support activities:

  • managing human resources,
  • administration,
  • infrastructure,
  • technology,
  • procurement.

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Fig. 1.2.4/3: Support Activities

BPM projects should target primary activities, but support processes can also be good candidates for BPM. If a support process has a business case and an ROI in alignment with corporate objectives, it is a valid candidate for a BPM project.