Supply chain

Physics

Business

Archaeology

Value (mathematics)

Scope (computer science)

Service (business)

Mathematics

Evolutionary biology

Biology

History

Gene

Value chain

Operating system

Machine learning

Visual arts

Marketing

Mathematical analysis

Function (biology)

Economics

Generalization

Chemistry

Programming language

Transformation (genetics)

Operations management

Scale (ratio)

Computer science

Quantum mechanics

Process (computing)

Industrial organization

Entertainment

Clothing

Biochemistry

Service Business

This paper generalizes Porter's notion of the value chain for the analysis of service industries. The generalization entails that the flow and the physical transformation and assembly of goods that are characteristic of manufacturing are generalized into flows and transformation of data and flows and transformation of the physical and mental condition of people that are characteristic of many service industries. Utility is generalized from the utilities of forms and function of goods, characteristic of manufacturing, to the utilities of time, place, convenience, speed, safety, entertainment, physical and mental well-being, knowledge and mental capacity, funding and assurance. The analysis yields a categorization of industries according to central features of the value adding process. Here, the analysis is used to identify sources of (in)efficiency of scale, scope and experience, along the value chain.

Service value chains and effects of scale