Introduction - Consultancy Value Chain: Disaggregation

5 important questions on Introduction - Consultancy Value Chain: Disaggregation

Why can consultancy value chains even be disaggregated (separate something into its component parts)?

Because, traditionally, management consultancy firms are fully integrated, all value-adding activities are conducted in-house.

What are the 2 drivers of value chains being broken up, or disaggregated?

  • Client sophistication
    • Education & experience - skill gaps between client and consultant are narrowing
    • Specialised demand, instead of full service
  • IT disruption
    • Outsourcing to specialists
    • Integrators bundle specialised services from different firms

What is a consequence of the disaggregation of the value chain for the value chain of management consultancy firms?

The consultancy firm will adapt its value chain.
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What is the value chain called that you see in the figure and what is it a result of?

The partial value chain, which is a result of the disaggregation (outsourcing activities that a consultancy does not have a competitive advantage on).

What does the firm in whose value proposition is represented in the partial value chain, have a competitive advantage in?

Client reputation and client network.

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