Value chains
Mapping the value chain of your products is a critical first step in any R&D effort. This involves understanding the sequence of activities that bring a product from raw material to end-user and identifying your position within this chain.
Start by analysing several steps upstream and downstream to understand the flow of materials, knowledge, and value. This process helps to clarify your role and contributions, ensuring that your decisions are strategic and informed.
To map your value chain effectively, consider the following questions:
- What are our core competencies?
- Where do we add value, and where do we depend on partners?
- What do we produce in-house, and what do we outsource?
- What are our sales channels and dependencies?
By answering these questions, you can identify knowledge gaps and develop a targeted plan to address them. This forms the Research phase of R&D, where you acquire the necessary information to support the next steps.
The Development phase builds on this foundation, applying the knowledge gained to adapt and create solutions tailored to your unique context. For instance, even developing a common item, like a stool, may require adjustments to accommodate your team’s skills, available equipment, market conditions, and distribution channels.
Practical tools such as flowcharts or stakeholder mapping can be valuable for visualising the value chain and identifying opportunities for improvement. Be prepared to adapt your approach, as challenges like limited access to resources or unstable markets often require creative problem-solving.
For example, at Flipflopi, we have strategically chosen to focus on a specific segment of the value chain: high-end, traditionally carved furniture made from recycled plastics. This decision reflects our local skills, cultural context, and accessible market channels.
Our approach may not be directly replicable in other settings due to differences in resources, team composition, or market dynamics.
However, the lesson remains universal: a deep understanding of your value chain, your community embedding and a willingness to experiment are essential to finding your niche.
