Detecting Value Capture Processes Using Fractal Enterprise Model (FEM)
Résumé
Value creation and value capture are the two main concepts within strategic management. This because of firm’s revenue depends on how these processes are managed. Value creation are associated with value chain processes that generate costs in a balance sheet. Thus, these are mostly tangible. Whereas, the value capture processes are associated with the processes intended to create any type of competitive advantage. Such advantage might be hidden in firm-specific routines or resources. Thus, value capture processes are ambiguous and often intangible. Practically, it is a challenging task to identify and manage them. This paper discusses how Enterprise Modelling (EM) may assist in detecting of this type of processes, particularly, Fractal Enterprise Model (FEM) is used for the challenge. A hypothetical example for detecting value capture processes is given using FEM technique.
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