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You can’t break the chain!

When I think of chains, movement, and progress, I usually remember my bike and the disaster that involved the chain going out of place. This simply made my vehicle unusable and meant that I would have to walk and push my bike home.

I like the example because it is expected, but sometimes it can be simplistic, and the reality is that business value chains are present in everything that moves in our lives. Through its use, the segregation of business functions is possible, thus quickly identifying strengths and weaknesses. Separating a company’s tasks allows one to know the potential sources of competitive advantage and puts a magnifying glass on any company’s most relevant strategies.

In my years of work, I have always been involved in developing value chains for the commercialisation of technology products and services. Being highly specialised solutions, on more than one occasion, I listened to proposals that suggested direct sales as the best option. Many manufacturers thought that only they would be able to position their solutions efficiently and therefore invested considerable amounts in sales teams looking for a one-to-one business. Many also argued that channels or distributors would only make the offer more expensive by including intermediaries that did not add any value. The weather and current market conditions make it clear to us that they couldn’t be more wrong.

What is the value chain about then? Just as a chain turns and drives the wheels of a bicycle or motorcycle, this is just how the value chain goes today’s business. It is about links, neither more or less important than the other, strictly doing what they do best. Specialists contributing with their knowledge and effort so that projects move forward. A virtuous circle that repeats itself every day, and that´s why YOU NEVER BREAK THE CHAIN!

The correct use of this chain potentiates business, multiplying the number of people who work for the same purpose. When the chain is “greased” properly via knowledge, training and communication, it generates an army that is very difficult to defeat.

Enrique Ferráez C.
Business Partners Director

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