A Predictive Analytic Model for Value Chain Management

Abstract

Value chain management has gone through various stages of automation, integration and optimization in the past decades. While an optimization model for value chain deals with business scenarios under known circumstances, a predictive value chain model deals with probable circumstances in the future. Predictive analytics is succeeding optimization in the evolution of technologies supporting value chain management. This paper proposes a forward looking value creation model that combines the important concepts of value chain management and predictive analytics. An enterprise model for value chain predictive analytics that facilitates the convergence of information, operations and analytics is presented.