Value shop
The value shop was first conceptualized by Thompson in 1967. A value shop is an organization designed to solve customer or client problems rather than creating value by producing output from an input of raw materials.
Compared to Michael Porter's concept of the value chain, there is no sequential fixed set of activities or resources utilized to create value. Each problem is treated uniquely and activities and resources are allocated specifically to cater for the problem in question.
According to the research of Charles B. Stabell and Øystein D. Fjeldstads (1998), five main generic activities are carried out in the organization:
- Problem Finding and acquisition
- Problem Solving
- Choice of problem solution
- Execution of solution
- Control and evaluation
Value is created in the shop by several mechanisms allowing the organization to solve problems better or faster than the client. These are variables such as:
- The organization is in possession of more information about the problem than the client
- The organization is specializied to deal with the problem at hand with specific methods to cover analysis
- Strong expertise with expert professionals is available.
Some of the classical examples of Value Shops include management consultancies such as Deloitte Touche Tohmatsu and McKinsey.