How can support value activities be identified in a value chain?

Support value activities in a value chain can be identified by understanding their role in enhancing the efficiency and effectiveness of primary activities. These activities are crucial for creating value for customers, as they provide the necessary support and infrastructure for the primary activities to operate successfully.

When considering the structure of the value chain, support activities are typically represented at the top of the framework. This positioning reflects their overarching influence on the primary activities, which directly contribute to the product or service delivery. Support activities include functions such as human resources management, technology development, and procurement, all of which serve to bolster the primary processes by ensuring that they have the necessary resources, technology, and skilled personnel.

Understanding that support activities exist at the top of the value chain is fundamental because it helps organizations recognize that the value created does not solely come from primary activities. Instead, effective support can significantly enhance the overall value delivered to customers, making it essential for businesses to focus on optimizing these support functions to improve competitive advantages and operational efficiency.