Transformative Megatrends Driving Value Chain Compression

Transformative Megatrends Driving Value Chain Compression

The Restructuring of the Value Chain will Open Up New Opportunities in the Retail Supply Chain

RELEASE DATE
30-Jul-2021
REGION
Global
Deliverable Type
Megatrends
Research Code: K54D-01-00-00-00
SKU: CI00763-GL-MT_25642
AvailableYesPDF Download
$4,950.00
In stock
SKU
CI00763-GL-MT_25642
$4,950.00
DownloadLink
ENQUIRE NOW

Description

Transformative business solutions and customer-centric business models are compressing the value chain. Vertical integration is causing value chain dynamics to change, with new entrants offering end-to-end solutions across the upstream and the downstream stages. The value chain will move from the current product-centric model to consumer-centric data, systems, and services in the new compact ecosystem. New technologies such as AR/VR, AI, and Blockchain will not only enable value-added customized solutions but will also reduce value chain inefficiencies.

Disparate generational preferences toward purchases impact the overall customer journey. Millennials prefer automated customer service and Gen Zs place high value on personalization, which is pushing retailers to redesign the value chain with a focus on direct customer communication. The growing trend of digitalization in the retail space is also encouraging businesses to explore new delivery and fulfilment models that will reduce the gestation gap between product order and delivery.

Advanced technologies, digital platforms, and direct-to-consumer models will result in value chain compression, reduced friction, and a decrease in the total number of steps in future customer journeys. Evolving consumer purchase trends such as the demand for more personalized products, same-day delivery, and innovative and informative purchase experiences enable the delivery of high-volume products (direct from the supplier/manufacturing hub to the customer). Companies are looking to set up digital ecosystem business models and provide several interconnected services through a single platform. This will offer multiple touch points and also shorten customer journeys.

The digitalization of customer services and the adoption of technologies such as cloud computing, predictive analytics, and Blockchain are opening up several opportunities for companies to shorten the value chain, mainly in the media and entertainment, insurance, automotive, and payment industries. Value chain compression offers numerous economic benefits such as decreased capital and infrastructure costs; for example, Blockchain reduces several steps around validation, tracking, clearing, and risk mitigation, which allows the companies (financial institutions) that use this technology to reduce infrastructure costs by 30%.

This Frost & Sullivan study offers a comprehensive view of the new trends in the value chain. It focuses on the various models that are leading to the shortening of various value chain stages. The study includes an in-depth representation of various emerging business models that support value chain compression. It also offers a comparative mapping of customer journey across various industries’ value chains. In addition, the study provides insight on the key impact of value chain compression across businesses and examines the new opportunities arising due to the shortening of the stages of value delivery.

Key Issues Addressed

  • How will traditional value chain models evolve in the near future?
  • Which parts of the value chain will get compressed?
  • Which emerging business models are supporting value chain evolution?
  • How will new entrants transform traditional value propositions?
  • How will the customer journey evolve in future?
  • How will new value chain proficiencies impact future customer journeys?

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

Our Mega Trend Universe—Overview

Growth Opportunities Fuel the Growth Pipeline Engine™

Our Mega Trend Universe—Compressing Value Chain Impact

Key Findings

Study Overview—How to Read this Study

Growth Opportunities Critical to Future Success

Evolving Trends in Customer Journeys

Value Chain Compression—Case Examples

Key Models Driving Value Chain Compression

OTT Media Services

OTT Business Models—Future

Future Customer Journey Mapping

Case Examples of Innovation in OTT Media Services

The Insurance Sector

Future Evolution of the Insurance Value Chain

Future Customer Journey Mapping

Unbundling of the Insurance Value Chain—Case Examples

Tesla’s Digitalization Strategy

Tesla’s Single Digital Platform Approach

Future Customer Journey Mapping

Case Examples of Innovative Product Digitalization

Innovative Trends in D2C Retail

Future Shifts in D2C Retail

Future Customer Journey Mapping

Case Examples of Innovative D2C Companies

Blockchain in Payment Value Chains

Future Trends in the Blockchain-Based Payment Model

Future Customer Journey Mapping

Case Examples

Value Chain Compression—Key Impact on Businesses

Key Value Prepositions

Future Shifts in Global Value Chains

Growth Opportunity 1: Digital Ecosystem to Offer Interconnected Services Through a Single Platform

Growth Opportunity 1: Digital Ecosystem to Offer Interconnected Services Through a Single Platform (continued)

Growth Opportunity 2: Retail Analytics for End-to-End Value Chain Opitimization

Growth Opportunity 2: Retail Analytics for End-to-End Value Chain Opitimization (continued)

Growth Opportunity 3: Flexible Fulfillment Models to Address the Growing Challenges of Last-mile Deliveries

Growth Opportunity 3: Flexible Fulfillment Models to Address the Growing Challenges of Last-mile Deliveries (continued)

Growth Opportunity 4: Innovative D2C Services to Reduce Excessive Customer Service Costs

Growth Opportunity 4: Innovative D2C Services to Reduce Excessive Customer Service Costs (continued)

Critical Success Factors for Growth

Identifying Your Company’s Growth Zone

Your Next Steps

List of Exhibits

List of Exhibits (continued)

Legal Disclaimer

Our Mega Trend Universe

Our Mega Trend Universe (continued)

Transformative business solutions and customer-centric business models are compressing the value chain. Vertical integration is causing value chain dynamics to change, with new entrants offering end-to-end solutions across the upstream and the downstream stages. The value chain will move from the current product-centric model to consumer-centric data, systems, and services in the new compact ecosystem. New technologies such as AR/VR, AI, and Blockchain will not only enable value-added customized solutions but will also reduce value chain inefficiencies. Disparate generational preferences toward purchases impact the overall customer journey. Millennials prefer automated customer service and Gen Zs place high value on personalization, which is pushing retailers to redesign the value chain with a focus on direct customer communication. The growing trend of digitalization in the retail space is also encouraging businesses to explore new delivery and fulfilment models that will reduce the gestation gap between product order and delivery. Advanced technologies, digital platforms, and direct-to-consumer models will result in value chain compression, reduced friction, and a decrease in the total number of steps in future customer journeys. Evolving consumer purchase trends such as the demand for more personalized products, same-day delivery, and innovative and informative purchase experiences enable the delivery of high-volume products (direct from the supplier/manufacturing hub to the customer). Companies are looking to set up digital ecosystem business models and provide several interconnected services through a single platform. This will offer multiple touch points and also shorten customer journeys. The digitalization of customer services and the adoption of technologies such as cloud computing, predictive analytics, and Blockchain are opening up several opportunities for companies to shorten the value chain, mainly in the media and entertainment, insurance, automotive, and payment industries. Value chain compression offers numerous economic benefits such as decreased capital and infrastructure costs; for example, Blockchain reduces several steps around validation, tracking, clearing, and risk mitigation, which allows the companies (financial institutions) that use this technology to reduce infrastructure costs by 30%. This Frost & Sullivan study offers a comprehensive view of the new trends in the value chain. It focuses on the various models that are leading to the shortening of various value chain stages. The study includes an in-depth representation of various emerging business models that support value chain compression. It also offers a comparative mapping of customer journey across various industries value chains. In addition, the study provides insight on the key impact of value chain compression across businesses and examines the new opportunities arising due to the shortening of the stages of value delivery.--BEGIN PROMO--

Key Issues Addressed

  • How will traditional value chain models evolve in the near future?
  • Which parts of the value chain will get compressed?
  • Which emerging business models are supporting value chain evolution?
  • How will new entrants transform traditional value propositions?
  • How will the customer journey evolve in future?
  • How will new value chain proficiencies impact future customer journeys?
More Information
Deliverable Type Megatrends
No Index No
Podcast No
Author Malabika Mandal
Industries Cross Industries
WIP Number K54D-01-00-00-00
Is Prebook No
GPS Codes 9A3B