Value Chain

Technological Interdependence

Sophistication of new technologies and the increased reliance on the application of new technology by business has produced several different forms of interdependence for companies:

   Systems Thinking value for business VadiK holistic thinking

 
 

▪ between industry and R&D institutions and other sources of external research

 		 

Shift from Linear to Systemic Innovation

  

 
 

▪ technology chain – supply chain, production, and customer relationship management - the application of a new technology in one of these requires changes in the operations of others

 		 

Growing Value of Systems Thinking for Business

Systems

  

 

 
 

▪ products and processes – the focus of technological advance may shift interconnectedly between one and the other

 		 

Synergy

Synergistic Innovation

  

 
 

▪ new product or service development jointly by several firms through collaborative R&D, and cooperative technology agreements

 		 

Systemic Innovation

Technological Innovation

  

 

 
 

▪ outsourcing of some new product development phases, e.g. product design or rapid prototyping, to specialized firms

 		 

IDEO – a leading product design company

  

 
 

▪ different functions within the firm, e.g. manufacturing, distribution, human resources and marketing

 		 

Master of Business Synergies (MBS)

 

 
 

▪ overlapping and merging technologies that cause interdependence between previously separate industries, e.g. merging of information technology with communications or entertainment

▪ integration of artificial intelligence (AI) technologies in various business functions and creative activities