What are the implications of VCM on business models?
Value chain management improves the overall effectiveness of a firms business model. It helps recognize where a business model is sub-optimal due to broken, revolute, or inefficient business processes. However, to be cautious in answering this question, we should distinguish within this definition how business is conducted versus how revenues are collected. In the latter case, value chain management reveals original and innovative alternative financial flows that firms can capitalize on. This is especially significant when dealing with the launch of a brand new product or service, or when entering a market as a new competitor. Value chain management also promotes fair distribution of financial flows (revenues, profits, investments and expense) amongst value chain members (suppliers, vendors, partners, channels, etc.). Otherwise, for commonly adopted financial flow models, value chain management tends to reinforce a firms position and protects it from pricing wars, as long as the custom
