2007 Silicon Valley Projections - Silicon Valley Leadership Group

Silicon Valley Industry Overview
• Logistics Network: direct/indirect materials supply chain,
inbound/outbound logistics, and distribution network
• Shared Services: support functions, traditionally includes
finance, information technology, human resources, legal,
procurement, and corporate real estate.
• Customer Focus: sales, retail, technical support, customer
support.
Along this continuum, the operations can be conducted by the
company (“captive”) or by an outside party (“outsource”), with
many variations and combination between these two bookends.
The company and components of the value chain may be
physical, organizational, and/or led in a centralized or decentralized
manner. In the case of the latter, operations may be
widely dispersed across the globe, often with business units
highly autonomous and with distinct support operations and
infrastructure.
For each value chain function the primary operating success
drivers are divided into two categories:
• Cost of operations: focus is on major costs that impact the
overall cost of the value chain activity.
• Operating conditions: focus is qualitative and non-cost
operating factors in the external environment that can
be leveraged for success or that may adversely impact the
success of the value chain activity.
In the tables that follow, the key value chain functions for each
of the Silicon Valley primary industries and the key operating
cost and condition factors are listed for each function. The
functions and factors have, by necessity, been generalized
across sectors and companies within the primary industries,
with the focus on the key operating cost and condition success
factors.
Consulting LLP.
Consulting LLP.
Consulting LLP.
5