Value interfaces of value activities

3.7 Value interfaces of value activities

Value activities have value interfaces too, as illustrated in figure 3.5. In this model, the traveler buys the trip and food in one bundle but the railway company sells train trips and food separately.

Figure 3.5:Two value activities that contribute to two offerings of the Railway company.

Figure 3.6:Two value activities that contribute to the same offering of the Railway company.

As an alternative, the railway company can choose to sell food only in combination with a train trip. This is represented in the model of figure 3.6. This is an example of bundling at the supplier as well as customer side.

Figure 3.7:An internal profit center.

Figure 3.8:An outsourced activity.

The railway company may alternatively decide that it is in the luxury transporting business and will offer catered train trips. The traveler pays one price for the trip and food. The luxury rail transporting activity buys this food from the catering value activity (figure 3.7). The catering activity must be paid for this because otherwise it would not be a profit center.

If the railway company does not think catering can be a profit center, it can outsource it, as shown in figure 3.8. Perhaps catering is profitable for a specialized catering company.