Digital value chains: Connecting capabilities for strategic growth

The Grid

Richard Hamerton-Stove

Partner, Data Strategy

Value Scan
Benchmarking and issue identification

Value Chain
Context for issues aligned with business priorities

Roadmap
Sequencing, dependencies, cost estimation

Following the foundational Value Scan, the next step in The GRID focuses on building digital value chains. This phase transforms isolated functions into interconnected workflows that drive both operational efficiency and strategic value.

In today’s economy, organisations must look beyond individual departments or siloed systems. By connecting capabilities across the organisation, digital value chains enable seamless collaboration, data sharing, and process optimisation, ensuring that every function contributes to overarching business goals.

 

What are digital value chains?

At their core, digital value chains represent the integration of systems, processes, and teams to create a connected organisation. Rather than treating each department or workflow as a standalone entity, value chains take a holistic view of how capabilities interact to deliver value.

For example:

  • In sales and marketing: A connected value chain enables real-time insights into customer behaviour, driving more personalised and effective campaigns
  • In supply chain operations: Linking procurement, inventory management, and logistics ensures better demand forecasting and reduced waste
  • In finance: Integrated systems provide transparency across revenue, costs, and profitability, enabling better decision-making

 

Why digital value chains matter

For organisations seeking to optimise operations and create scalable growth models, digital value chains are not just an enhancement—they’re essential. Here’s why:

  1. Breaking down silos
    Many organisations struggle with siloed departments that operate independently, creating inefficiencies and misalignment. Value chains foster collaboration and connectivity, ensuring that all functions contribute to shared goals.
  2. Improved decision-making  Seamless data flow across the organisation empowers individuals at every level—from frontline teams to leadership—with access to a comprehensive view of operations. This enables faster, more informed decisions based on accurate, real-time insights, embedding a culture of data-driven decision-making throughout the business.
  3. Cost optimisation
    By identifying overlaps and inefficiencies in processes, value chains streamline operations and reduce unnecessary costs.
  4. Scalability
    Connected systems and processes are more adaptable to growth. As businesses expand, digital value chains ensure that operations scale efficiently without compromising performance.

 

How digital value chains work

The process of creating digital value chains involves several key steps:

  1. Process Mapping
    The first step is understanding how current workflows interact. This involves creating detailed process maps that identify inefficiencies, overlaps, and gaps.
  2. Integrating Systems
    By connecting platforms such as ERP, CRM, and supply chain management tools, organisations can ensure seamless data sharing and collaboration across functions.
  3. Automation
    Identifying opportunities for automation within the value chain—such as automating repetitive tasks in finance or customer service—can drive efficiency and free up resources for higher-value activities.
  4. Aligning Teams
    Creating connected value chains requires cross-functional alignment. Workshops and collaborative planning sessions help teams understand their role in the broader organisational ecosystem.

 

The role of data in digital value chains

Data is the backbone of effective value chains. By integrating data from across functions, organisations can:

  • Enable real-time insights into operational performance
  • Identify patterns and trends that inform strategic decisions
  • Drive predictive analytics for forecasting and optimisation

For instance, a connected sales and marketing value chain can leverage customer data to create more targeted campaigns, increasing engagement and conversion rates. Similarly, a finance and operations value chain can use analytics to optimise cash flow and reduce costs.

 

Digital value chains as part of The GRID

The digital value chains phase builds on the insights gathered during the value scan, using them to create a connected organisation that drives both efficiency and innovation. It also sets the stage for the Digital by Default Roadmap, where these connected capabilities are scaled and optimised for long-term growth.

Together, these phases ensure that organisations are not just solving isolated problems but creating a cohesive, scalable infrastructure for success in the data-driven economy.

 

Conclusion: The power of connection

Digital value chains are the key to unlocking operational efficiency and strategic growth. By connecting systems, processes, and teams, organisations can eliminate silos, optimise costs, and scale effectively.

For businesses looking to build a future-ready organisation, the digital value chains phase of the GRID Framework provides a clear path to achieving seamless connectivity and measurable value.

The next step? Transforming these connected capabilities into a scalable roadmap that delivers sustainable success.

 

What could The GRID do for your business?

What could The GRID do for your business?

Related Insight Articles:

Let’s Talk

Richard Hamerton-Stove

Partner, Data Strategy

Search