Virtual Value Chain

Jeffrey F. Rayport and John J. Svikola presented in the article Exploiting the Virtual value Chain [HBR, 1995] interesting business –world dichotomy: a physical world of resources [marketplace] and world of information [marketspace]. They underlined that executives must pay attention to how their companies create value in both the physical world and the virtual world. As always I am looking for some similarities or even interplay between business and PA. Rayport and Svikola examined the value chain model which is according to authors, series of value-adding activities connecting a company supply side with its demand side. By analyzing the stages of a value chain , managers are able to redesign their internal and external processes to improve efficiency and effectiveness. What is interesting for me is that value chain model threats information as a supporting element of the value-adding process, not as a source of value itself. As a matter of fact, in my opinion, information is a source of value itself. There is an example of FedEx presented in the article. FedEx a few years ago allowed their consumers to locate via Internet their packages in transit. They even allowed them to identify the person who signed for it. In opinion of experts this service of FedEx created added value for customers - and thus increased loyalty in market. What does it have to do with PA? One of the functionalities of Public Information Bulletin [BIP] systems was to be tracking by citizens state of the its personal matter submitted to PA like for example issuing personal ID [or any other service connected with particular procedures and life episodes]. It seems to be very important to have opportunity to know who is responsible for decision on our matter, how long it takes to have a decision, what is the progress made in making public service for us, etc. Of course it is a complex matter; it depends on procedures, it requires to use digital signature, etc. But providing citizens with such service will certainly create added value. It will also increase loyalty of citizens even though we realize that there is almost no competition in “PA market”. Satisfied citizens with quality of service, citizens saving time that is a added value. Political value also. Economical value either.

Did BIP constitute important aspect of value chain in PA? In this regard, unfortunately it did not