Porter’s concept

The value-added chain is a concept that took shape in the mid-1980s within the theory of competitive advantage. It proposes viewing an organization’s activity as a sequence of activities, each of which adds value for the end consumer.

Porter divided activities into:

  • Primary — inbound logistics, operations, outbound logistics, marketing, service
  • Support — infrastructure, HR, technology, procurement

The graphical notation

In BPM practice a simplified VAC notation is used — a sequence of arrow-shaped blocks, each corresponding to a major process or process area. VAC is applied at the top level of an enterprise’s process architecture — as a “map” of all processes that unfold, when detailed, into more granular notations (BPMN, EPC).

Where it is used

VAC is best for:

  • The top level of a process architecture
  • Strategic presentations
  • Aligning the big picture with top management
  • Identifying process areas for later detailing

Limitations

  • Not meant for describing process details
  • Does not show conditional logic and branching
  • A high level of abstraction — each block may hide dozens of real processes