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Unit 3: Analysing Profitability of Customers




                                                                                                Notes
             Figure 3.4:  FBI Value  Chain—An Example  of a  Framework for  “the view  from 40,000  feet”
                                   of  Serious  Enterprise  Architecture

































          Source:  http://www.nap.edu/openbook.php?record_id=10991&page=19

                              Figure 3.5:  Value Chain  Activities/ Cost  Drivers

                      Value Chain Activities                  Cost Drivers
            Manage location and articulate strategy. Location   Number  and  location  of  satellite  campuses.
            and  strategic  choices  need  constant  articulation   number  of  industry  and  social  segments  in
            and are considered  cost  drives  Activities  in  this   which  the  institution  is  present  number  of
            category include framing the market opportunity   students or registrants
            managing the scope of the market. managing the
            value proposition and managing the organization
            unique resources.
            Manage technology. What process does the online   Types of process Technologies
            learning institution use to manage its technology
            through  the  value  chain?  The  level  of  expertise
            and effectiveness or use compared to competitors
            will affect overall organization-level costs.
            Manage  complexity  of  university  offerings.  The   Number of different courses and programs
            breadth of the progress and courses being offered
            is an important driver of costs.
            Manage   institutional   structure,   Financial   Debt  level,  Debt  capacity  and  Tax  status
            structure,  accountability  and  debt  level  affect   (favorable or unfavorable)
            many costs and the organization’s flexibility.
            Gain experience, team, and manage skill sets. An   Effectiveness  of  professional  training,  team
            organization,  learning,  growth,  experience,  and   building knowledge sharing, economies of scale
            application  of  that  experience  drive  a  significant
            portion of the cost.

          Source:  http://www.gartner.com/newsroom/id/1074615




                                           LOVELY PROFESSIONAL UNIVERSITY                                   65
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