RESULT OBTAINED
Decision concept
Value chain: locating creation, capture and dependencies
What must be established
A useful analysis keeps its controls visible.
- 01
Describe the activities and flows rather than a mere list of companies.
- 02
Identify the bottlenecks, scarce assets and control points.
- 03
Compare value created, margin captured and risk borne.
Decision reference
Make the next choice more explicit.
DECISION SUPPORTED
Where is value created, captured and lost between the activities and the actors?
DELIVERABLE TO KEEP
A map of the critical activities and of the positions where to invest, partner or differentiate.
NEXT ELEMENT TO EXAMINE
Define the marketExplore →22 · ORIGINAL ASSET
Creation, capture and margin by activity
E2 economic model
The model separates the economic benefit estimated for the customer, the revenue captured and the supplier costs. None of these quantities is substituted for another.
Download the dataset as CSV ↓Unit: one account over one year. The three factors are independent and serve only to test sensitivity.
Estimated value created€21,600
Revenue captured€10,000
Total costs€8,500
Contribution margin€1,500
Capture rate46.3%
Contribution margin = revenue captured - direct costs - allocated costs. Capture rate = revenue captured / estimated value created.
| Activity | Estimated value created | Revenue captured | Direct cost | Allocated cost | Contribution margin | Capture rate |
|---|---|---|---|---|---|---|
| Data acquisition | €2,500 | €1,200 | €800 | €1,000 | -€600 | 48.0% |
| Qualification | €3,600 | €1,800 | €700 | €700 | €400 | 50.0% |
| Analysis | €6,500 | €3,100 | €1,200 | €1,000 | €900 | 47.7% |
| Decision support | €7,200 | €2,700 | €900 | €700 | €1,100 | 37.5% |
| Distribution | €1,800 | €1,200 | €900 | €600 | -€300 | 66.7% |
Assumptions and limits. Value created is an estimate of gross benefit before sharing, neither revenue nor margin. Revenue is a billing allocation, and allocated costs depend on the accounting convention. Taxes, cost of capital and sunk costs are excluded. A decision requires documenting these conventions and revisiting the case whenever an input changes.
Teaching case · simulated data · no real-world market conclusion.
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MOVE FROM ANALYSIS TO YOUR DECISION
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See the canonical definition of marketing strategy→