Following on from the concept of the Value Chain we now have a thinking frame for articulating Business Value. By virtue of its components, it forms a Chain of interdependence. It establishes two sides of the whole system - Demand & Supply.
While the nature of desire on the Demand side changes - the population of people that constitute the demand - does not change other than for the size of this population as it fluctuates. We will come back to the demand side dynamics in a little bit.
However, on the Supply Side, evolution takes hold via the Value Creation capability (people driven). The core assets at Value Creations disposal are Specialisation & Synergy.
What unfolds, are additional interdependent links with defined roles at each link that increases the efficiency of the whole supply side.
The Supply side is now forming a chain - This is the first level of the Supply Chain - Organisational Interdependence bound by a common promise to fulfil on the desire of the demand side.