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Value Chain Migration Death March

Value Chain Migration Death March We’re going to start with what I call the value chain migration death march. I’m referring to the universal tendency across every company, anywhere in the world, to want to respond to their envy. In every single sector in the world, there's a value chain. On the one side, usually the left-hand side, there are suppliers, and on the other side, usually the right-hand side, there are customers. Typically, the closer you get to customers, your margins increase. The further you get from customers, your margins usually decrease—but there are definitely exceptions to the rule. For example, tech companies that operate platforms tend to operate on the left-hand side of the value chain, and whatever is hosted on their platforms is what interacts with customers. For a bank that hosts a capability—whether it's some part of their digital infrastructure on a cloud server somewhere, maybe hosted by Amazon—that digital application is what interacts with customers, not Amazon. Amazon is hosting the part that interacts with customers—and they do an excellent job. [bctt tweet="If you’re a cloud-based streaming company that hosts the capabilities of companies, the thinking is that if the cloud company has such a good…

Value Chain Migration Death March We’re going to start with what I call the value chain migration death march. I’m referring to the universal tendency across every company, anywhere in the world, to want to respond to their envy. In every single sector in the world, there's a value chain. On the one side, usually the left-hand side, there are suppliers, and on the other side, usually the right-hand side, there are customers. Typically, the closer you get to customers, your margins increase. The further you get from customers, your margins usually decrease—but there are definitely exceptions to the rule. For…

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