Real-Time Value Chain Management
Chan
Real-Time Value Chain Management
Joseph O. Chan
Roosevelt University
jchan@roosevelt.edu
ABSTRACT
Value creation in the digital economy of the 21st century is characterized by the instantaneous processing
and coordination of value chain activities across extended enterprises. Value chain management has
evolved from automation and integration to the optimization of the entire value chain in real-time. Realtime value chain management enables organizations to be agile and responsive in a complex and rapidly
changing global environment. This paper examines the real-time characteristics for each of the activities
in the demand and supply value chains. A model is presented for real-time value chain management
enabled by technologies in e-business, knowledge management and business intelligence.
INTRODUCTION
As described by Porter (2001) the evolution of technologies in business has gone through the overlapping stages of
automation of discrete transactions, functional enhancement of activities, cross-activity integration, integration of
the entire value chain, and the optimization of various activities in the value chain in real-time. The digital economy
of the 21st century fueled by globalization and the Internet is characterized by instantaneous processing, access and
dissemination of information around the globe. The ability for organizations to be agile and responsive in an
increasingly complex, rapidly changing and interconnected global environment requires real-time management and
coordination of value chain activities across the extended enterprise. Real-time management of the value chain
requires the capability of conducting transactions through computer networks, the capability of responding to
situations with expertise and knowledge, and the capability to leverage business intelligence. This paper examines
the characteristics of real-time value chain management and presents a model utilizing...