Value Chains design, produce, and deliver products or services to meet a specific set of customer needs. The spinners of wealth in any economy, Value Chains first identify and define needs, then design and build solutions . Enter the Internet. Now a new logic of value creation is driving the production of goods and services. The new value proposition is service-enhanced customization.
Activities tend to be fixed, while the goods are uniform - mass customized at best.
Improvement initiatives traditionally focus on process efficiency and cost. As a general principle, goods were designed for mass markets and production efficiency. One of the highest profile exceptions to this rule was Dell. Since it's inception, Dell has sold directly to the buyer. There are no intermediaries or resellers to blur Dell's understanding of consumer demand.