Value Chain

Value Chain

Value chain provides a diagrammatic way of viewing and thinking about an organization. Value chain allows strategy and accounting analysis. According to Sison and Pablo (2000), a university’s value chain would look like a network of activities centered around teaching, education that is individualized and research. Moreover, the value chain would also be concerned with tools that enable target knowledge acquisition and service to the community. Rathee et al. (2013) argues that these activities can be classified into three primary forms that involve recruitment of students, the process of education and post-education.

Value chain model: An example of university value chain

Academic experts creation of knowledge
Procession of knowledge
The knowledge storage in databases
The university market knowledge
The university sells the knowledge

Value Chain of the University














The simple value chain for the operation of a university involves five steps. The first two steps involve the generation of particular knowledge by relevant academic experts. The process of knowledge generation and processing comprises the research in a university. Once the knowledge is processed, it is then stored in databases in various faculties in the university. Various faculties store knowledge that is relevant to the type of information it disseminates to the learners. Certified educational providers and brokers then market the knowledge after which a series of activities ranging from admission occur. Admission of qualified students is followed by a process of teaching to for them to acquire relevant knowledge and values.

Cost effectiveness reduction for the value chains elements

Teaching involves various faculties and relevant support staff. Teaching also involves support facilities. Evaluation of this element can help to reduce cost such as by not providing teachers with offices, reducing facilities used and lowering full-time members (Elloumi, 2004). Moreover, Elloumi argues that the research elements’ cost can be reduced by requiring faculty members to concentrate exclusively on teaching. Such directive will enable reduction of cost encountered in research, management of the University, creation of course and service to the community. Moreover, a university can reduce the cost of knowledge storage through marginalizing education.




Elloumi, F. (2004). Value chain analysis: A strategic approach to online learning. Theory and practice of online learning, 61.

Rathee, R., Rajain, P., Chauhan, M. S., Aheere, D., & Singh, B. (2013). Service Value Chain Models in Higher Education.

Sison, R., & Pablo, Z. C. (2000). Value Chain Framework and Support System for Higher Education. In Proceedings of the Philippine Computing Science Congress (PCSC).

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