Interventional Roadmap for Digital Enablement Leading to Effective Value-chain Management in the Manufacturing Sector

Abstract

The aim of this article is to identify the key parameters of effective value-chain management in an information technology-driven industry. Further, the article aims to elucidate the hierarchical relationship among the parameters to facilitate focused interventions at ‘strategic’, ‘operational’ and ‘tactical’ levels. An important aspect of organizational transformation leading to integrated ‘value-chains’ facilitated by digital interaction among partners (that is, the digitized environment) is the identification of key parameters and establishing a critical list to facilitate focused attention of the different organizational levels—top management, middle management and operating levels. This article utilizes the Interpretive Structural Modelling (ISM) methodology to understand the mutual influence among the parameters to identify the dependent and driving parameters. By analysing the hierarchical interrelationship amongst parameters, we can identify the focus group, that is, the set of key interventions on which the top management should focus their attention, to leverage the benefits from a digitally integrated value-chain. It can be clearly seen that there two sets of parameters—one set, which essentially leads to better information integration on the buy and sell side of the value-chain, includes the key drivers of an effective value-chain; and another set, reflecting the effectiveness/derived benefits of the integration of the value-chain, are dependent on the degree of integration. The input for this research is based on qualitative data collated from industry experts in Indian steel and cement industries. Finally, the implications for practices and scope of future research are identified here.