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Value Chain and Process Transformation

Why Digital and Sustainable Value Chain and processes?

Digital and sustainable value chain and process transformation refers to the process of integrating digital technologies and sustainable practices into every step of a company's value chain and business processes. The value chain consists of all the activities involved in creating and delivering a product or service to customers, from raw material sourcing to end-of-life disposal. The goal of digital and sustainable value chain transformation is to optimize the value chain by reducing costs, increasing efficiency, and improving the sustainability of the entire process.

Digital transformation involves using digital technologies such as automation, artificial intelligence, and data analytics to streamline business processes, increase efficiency, and improve decision-making.

Sustainable transformation involves incorporating environmental, social, and governance (ESG) considerations into business practices to reduce environmental impact, ensure social responsibility, and improve long-term financial performance. A concept called a "sustainable value chain" focuses on global issues including human rights, climate change and the melting of the polar ice caps, ethical labor practices, marine pollution, shrinking forest cover, plastic pollution, air pollution, etc. The key characteristics of appropriateness in the global value chain are environmental, economic, and social factors.

In summary, digital and sustainable value chain and process transformation is essential for companies to remain competitive, meet sustainability goals, and comply with regulations while providing a better customer experience and reducing costs.

Digital and sustainable value chain and process transformation helps companies achieve their sustainability goals, reduce costs, and improve customer satisfaction. By integrating digital and sustainable practices into every step of the value chain, companies can create a more resilient and competitive business that is better equipped to meet the challenges of a rapidly changing world.

Release the power of Digital Disruption

Businesses that use the strength of significant new technology to provide an entirely new level of innovative service or brand-new products are known as digital disruptors. They offer a whole new level of ground-breaking service or brand-new products, harnessing the power of important new technologies. These are the emerging businesses that have received a lot of money and may potentially be on the verge of becoming the next unicorn.

What’s keeping them back?

These digital disruptors can’t reach the next level because of the bottlenecks that come from operational inefficiencies. Many realize that they are not sophisticated in their operations capabilities. They’ve done a good job in establishing scale, but when operations issues start to balloon, they don’t have the capacity to manage those challenges, and more importantly, remove the roadblocks to growth.

These operational challenges hit companies of every size at some point in their evolution, especially as they reach a stride in their customer growth.

IPG can help assessing your operations, identifying potential bottlenecks and building the necessary capabilities is a critical step to ensure that your company is ready to scale and delight customers.

What are the success factors in implementing Digital and Sustainable Value Chain and processes?

The success factors for digital and sustainable value chain and process transformation include executive leadership, data-driven approach, cross-functional collaboration, agile approach, continuous learning and development, and a sustainability-focused culture.

EXECUTIVE LEADERSHIP

Having clear and measurable objectives that align with the company's overall business goals is essential for success. This helps to ensure that the digital strategy is focused on achieving specific outcomes and is aligned with the company's broader goals.

DATA-DRIVEN APPROACH

A customer-centric approach is critical for success in the digital space. This involves understanding customer needs, preferences, and behaviors, and using this knowledge to create digital experiences that deliver value to customers and meet their needs.

CROSS-FUNCTIONAL COLLABORATION

The digital landscape is constantly evolving, and companies need to be agile and adaptable in order to keep up with new technologies, changing customer preferences, and shifting market conditions. This requires a willingness to experiment, learn, and iterate as part of the digital strategy implementation process.

AGILE APPROACH

A Data is a key success factor in the digital space, and companies need to be able to collect, analyze, and leverage data to inform decision-making and optimize performance. This includes setting up systems for data collection and analysis, and using data to continuously improve the digital strategy and business model.

CONTINUOUS LEARNING AND DEVELOPMENT

A Successful implementation of a digital strategy and business model requires collaboration across different departments and functions within the organization. This involves breaking down silos and fostering a culture of collaboration and communication across the organization.

RESOURCE ALLOCATION

Adequate allocation of resources, including budget, personnel, and technology, is essential for the successful implementation of a digital strategy and business model. Companies need to ensure that they have the necessary resources in place to support the digital initiatives and tactics included in the strategy.

We are IPG - The TWIN Transformers

iPG Framework Wheel INNOVATE PERFORM GROW Acceleration Incubation Discovery Baselining Use case profiling Implementation & monitoring Maintain profitability Expansion & leadership Growth strategy iPG INNOVATE · PERFORM · GROW

A self-driving value chain is already being implemented by leading businesses. Companies need to change their end-to-end operational model in order to stay competitive.

Sustainable value chain transformation strategy is a mechanism for accelerating science-based policy action on sustainable consumption and production. In order to limit the use of natural resources and the environmental effects of production and consumption, the strategy identifies critical sites of intervention within economic systems and establishes a shared agenda for action1. Businesses may contribute significantly to the transition to an economy that respects the limitations of nature and people by adopting a sustainable strategy and creating long-term value.

IPG guides companies in establishing a digital value chain by pursuing the following six steps:

6 Step Transformation Journey
STEP 6 CONTINUOUS

IMPROVEMENT

STEP 5 MONITOR

AND OPTIMIZE

01
02
03
04
05
06
STEP 1 DEFINE THE DIGITAL

AND SUSTAINABLE STRATEGY

STEP 4

IMPLEMENT THE DIGITAL AND SUSTAINABLE VALUE CHAIN

STEP 2 UNDERSTAND

THE VALUE CHAIN AND DEFINE KEY HOT TOPICS

STEP 3 DESIGN THE DIGITAL

AND SUSTAINABLE VALUE CHAIN

LEADERSHIP TEAM SHOULD BE

Define the strategy, which involves identifying the goals and objectives of the digital and sustainable value chain initiative. This includes understanding customer needs, identifying the most critical business processes, and setting targets for improvements in sustainability, efficiency, quality, and customer experience.

UNDERSTAND THE VALUE CHAIN AND DEFINE KEY HOT SPOTS

Assess the current state of the value chain, including the existing IT infrastructure, business processes, and technology landscape. This involves mapping data on natural resource use and environmental impacts, identifying key hot spots, gaps and areas for improvement to align with the digital and sustainable strategy.

DESIGN THE DIGITAL AND SUSTAINABLE VALUE CHAIN

Identify a common agenda & prioritize actions for all actors along the value chain. Consolidate existing action & identify opportunities, This involves identifying the most important digital technologies and tools required to enable the digital and sustainable value chain, such as automation, AI, and data analytics.

IMPLEMENT THE DIGITAL AND SUSTAINABLE VALUE CHAIN

And the next step is to implement the digital and sustainable value chain. This involves developing and deploying the necessary digital technologies and tools, integrating them into existing business processes and IT infrastructure.


MONITOR AND OPTIMIZE

Once the digital and sustainable value chain is implemented, it is essential to monitor its performance continuously. This includes collecting data and feedback, identifying issues, and optimizing the digital value chain to continuously improve its efficiency, quality, and customer experience.

CONTINUOUS IMPROVEMENT

Digital and sustainable value chain is an ongoing process, so continuous improvement is essential. This involves incorporating new digital technologies and tools as they emerge and staying up to date with best practices in digital transformation.

Creating Exceptional Value Out of Open Innovation

LATEST TOP INSIGHTS “Digital & Sustainable Value Chain and Process Transformation”

SUCCESS CASES on “Digital & Sustainable Value Chain and Process Transformation”

DIGITAL FITNESS along our entire JOST value creation process is a key success factor for us. Together with IPG, we were able to uncover important efficiency potential in purchasing, supply chain and production and define valuable focal points for future digital solutions in company-wide JOST process management

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Dirk Hanenberg

COO JOST Werke SE

With his relevant experience in various industries, Carsten Vollrath and IPG are an important source of inspiration and sparring partner for us on the topic of "Transformation of the SBB Supply Chain in the Direction of Digitalization and Sustainability”.

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Jan-Patrick Willmes

Former Head of Procurement Competence Center Swiss federal railways (SBB) AG

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Adrian Jungo

President / Head of Business Development / procure.ch / cablex

IPG is one of the first addresses for supply chain transformation. For us, IPG is an ideal strategic partner not only as an initiator and pioneer, but also as a strategic implementation partner for innovative supply chain solutions and associated digital business models.

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Dirk Reich

Co-Founder / Board Member Log-hub Imperial Logistics

IPG's deep experience in Global Footprint & Operating Model re-design was very valuable. Another key success factor was the close integration of concept development with our organization, coupled with a very pragmatic, results-oriented approach. Within a few months, a concise road map was formulated and full buy-in was secured by our management team.

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Reinhard Mayer

Former CFO GETINGE Group

On the way to our new strategy, we asked ourselves the following questions: What are the trends in our markets? How fast are these trends developing? With which market approach do we want to address which of these trends? Under which "guiding idea" do we want to position our new offering? Pragmatic, comprehensible answers emerged in an interplay between "thought ahead" and "developed in a circle of many. The IPG approach paired with very senior consultants has made a decisive contribution to our development.

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Dr. Martin Schefter

CEO / BARTEC Safe.t Technology

We appreciate IPG's guidance in the transformation towards DIGITAL FITNESS. In a broad-based initiative, we were able to uncover significant efficiency reserves in our organization and define future solutions for company-wide JOST process management.

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Joachim Dürr

CEO/ JOST Werke SE

IPG's deep experience in Strategy & Business Model Innovation was very valuable. Another key success factor was the close integration of concept development with our organization, coupled with a very pragmatic, results-oriented approach. Within a few months, a concise road map was formulated and full buy-in was secured by our management team.

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Dr. Jörg Dalhöfer

CEO Bea Group

IPG is a reliable partner in strategy development and implementation. They take the time to involve all stakeholders in the process. Also they have excellent research capabilities that are highly flexible, allowing us to pursue an agile and fast strategy development process. Beyond formulating the strategy, IPG works with stakeholders across the organization to aid implementation, too.

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Dr. Torben Schüttfort

Managing Director Becton Dickinson Rowa Technologies

In just a few weeks we identified the existing improvement potential with the help of the IPG benchmarking approach, derived a coherent road map and achieved full buy-in by our Global Supply Chain Management team. Particularly valuable was the trend analysis conducted by IPG, which drew our attention to some key trends and drivers that will change our supply chain in the medium term and which we were able to take into account appropriately in our strategy.

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Kai Könecke

Chief Supply Chain Officer Emmi

We are driving forward the strategic expansion of our purchasing and supply chain function with high priority. With IPG’s guidance, we have been able to create important prerequisites for further increasing our unit's value contribution to the company's success in the future and initiating the transformation toward digitalization and sustainability.

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Markus Schenker

Supply Chain Management Uster Technologies

As recognized Thought Leader and Co-Creator for innovation with an impressive track record in the digital transformation of leading companies, IPG's expertise within the Swiss national INDUSTRIE 2025 initiative, especially with regards to the development of unique digital business models, is highly appreciated!

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Philip Hauri

Platform Manager NEXT INDUSTIES

IPG has helped a lot to focus on creating something really new instead of letting the same thing become more intense. Together with IPG, we have managed to design a fully connected & harmonized operating model and cross-regional shared functions to leverage both our size as well as our expertise. As key result we thereby substantially increased our sales efficiency and productivity.

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Heinz Jacqui

Senior Vice President Gunnebo Group

Thanks to IPG's open innovation approach, we have received interesting solution ideas for our open questions. This gave us fresh ideas and interesting actual opportunities for the future.

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Jussi Takaneva

Head of Industrial, Multimedia and Distribution JAE Europe

As an internationally recognized think tank and consultancy for technology and innovation management, we see IPG as a valuable strategic partner for the expansion of our Science-technology Park. In addition, we benefit from IPG's relevant supply chain expertise in developing and locating highly qualified suppliers for our customers.

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Marion Milanović

Business Development & Shared Services MIND - Milanović Industries Group

The strategic expansion of our commodity group management is a top priority for SBB. With the support of Carsten Vollrath and his team, we were able to realize important steps in expanding our methodological expertise and in deriving commodity group-specific optimization levers and sustainable procurement strategies.

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Dietmar Gessner

Head of Competence Center Commodity Management Swiss federal railways (SBB) AG

Digital procurement is a central field of training for us, in which the BME already plays a leading role. We are proud to have won IPG as a strategic partner for the further expansion of our training program. With IPG's relevant innovation and digitization competence, we offer German procurement organizations a first-class range of services to systematically develop and expand their digital competencies.

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Wilhelm Keienburg

Managing Director BME Academy

IPG is one of the leading think tanks and management consultancies for the holistic transformation of purchasing. Above all, with its relevant innovation competence, IPG is a strategic training partner for us for the systematic development of purchasing 4.0 competencies and the initiation of purchasing 4.0 pilot projects in Swiss companies. logo-procure Andreas Kyburz For over 55 years, the Trade Association for Purchasing and Supply Management “procure.ch” has been accompanying procurement employees at industrial, trading and service companies throughout their professional careers. The association links around 1,000 companies from different sectors and of different sizes, along with 500 private individuals.

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Andreas Kyburz

Managing Director procure.ch

IPG’s deep experience motivated us to investigate our current business model. Carsten Vollrath’s and his team members full commitment moved us further in building new complement digital business model. Our company's holistic vision has changed, first milestone of the project is done. IPG moved us in the process of digital brewing of our new business model, like the process of making the beer. Thanks to IPG we did START. Now we follow-UP.

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Vojin Vukadinović

Executive Director IT & Marketing Metalac Group

In addition to intensive analyses on the market and customer side with IPG, the impulses from many external experts and potential development partners that IPG involved in our innovation work were trend-setting on our way from a classical machine manufacturer to a solution provider and strategic business partner for our customers.

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Alex Waser

Former CEO Bystronic Member of Conzzeta Executive Committee

The IPG Open Innovation approach has brought us new ideas and concrete solutions much faster, significantly increased our development productivity and integrated potential development suppliers into the process early on. The expectations we had placed in the project were exceeded.

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Antonios Vonofakos

Former Vice President & GM Becton Dicikinson Rowa Technologies

We like to work with IPG because they not only have the skills of strategy consulting and facilitation, but also understand our medical and technical challenges due to their in-depth experience in healthcare.

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Dr. Stefan Klose

Former Director R&D Acute Care Therapies Maquet Cardiopulmonary

IPG's deep experience in business model development and especially with regard to open innovation was very valuable. Through networked thinking, we were encouraged to embark on something truly new and to open up widely to explore concrete new offerings, business models and set cornerstones to our organization for a new growth area.

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Nader Halmuschi

Former Vice President / Managing Director BARTEC Safe.t Technology

When it comes to topics related to innovation and digitalization (AI, IoT, automation, etc), Carsten Vollrath and his team are a top address.

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Walter Huber

Former CEO M-Industrie Migros-Gruppe

I greatly appreciate IPG’s guidance on the MNRS strategizing process in exploring a reimagination of our brand and our charity's business model. In this regards, IPG has given us such a powerful approach to scale and innovate how we deliver services to families in need.

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Joanne Gouaux

Acting Board Chair My New Red Shoes (MNRS)

IPG has helped us a lot in sharpening a common understanding of the topic of strategic procurement management across all purchasing units and raising the entire purchasing department to a new level of professionalism. The structural & cultural challenges in the organization associated with the necessary transformation were recognized early on and actively addressed.

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Axel Butterweck

Former CPO Swiss Post

As recognized Thought Leader and Co-Creator for innovation with a long track record in the digital transformation of leading companies, IPG's expertise within the Swiss dialogue about digitalization and technology management (i.e. in the national INDUSTRIE 2025 initiative) especially with regards to the development of unique digital business models is highly appreciated!

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Rene Brugger

President Swiss Technology Network

On the way to our new order fulfillment organization, we harmonized the roles, tasks and competencies between the functions involved and established a common end-2-end process understanding. In the interplay between "thought ahead" and "agreed within the circle of stakeholders", the IPG approach has contributed decisively to our new setup and our collaborative approach.

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Harry Baumann

Manager Supply Chain and Operations Uster Technologies AG

IPG has made a strong contribution to our brand relaunch. Thanks to the collection and evaluation of hand-picked customer voices (voice of the customer), we were able to sharpen our positioning and strengthen our brand.

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Axel Kühn

Managing Director Fellows & Sparks

The acknowledged expertise of IPG has helped us a lot in setting up an integrated global Supply Chain & Procurement function which fully supports the new Getinge Operating Model in the best possible way. This included a new organizational setup and corresponding roles and responsibilities as well as a new governance structures for coordination between all SC functions in the group. As one key success factor IPG managed to integrate all relevant functional areas systematically into the redesign process from the very beginning, thereby achieving a high buy-in.

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Markus Medart

Former President Supply Chain Getinge Group

We have had very good experiences with IPG and their Open Innovation approach. In a remarkably short time they have found and mobilized the right external experts. The results of the Open Innovation Workshops opened up new perspectives for us in the development of innovations and were therefore very valuable to us.

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Christoph Hellenbrand

Director R&D Becton Dickinson Rowa Technologies

On behalf of the Chamber of Commerce, I`m using the opportunity to express satisfaction for the joint fruitful collaboration in the matter of industrialization and digitalization of Serbian economy. As an international think tank and top management consultancy with an impressive track record in the digital transformation of leading companies, IPG's expertise is highly appreciated within the public-private dialogue within the framework of the elaboration of the new industrial policy strategy, as well as the initiative of digital transformation in industry the Republic of Serbia! chamber-of-commerce-serbia Vidosava Dzagić The Chamber of Commerce and Industry of Serbia is an independent, modern and responsible non-budget institution, a national association of all Serbian businessmen who puts their traditions, experience, knowledge and expertise to the best interests of their members and the Serbian economy.

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Vidosava Dzagić

Assistant Director Chamber of Commerce and Industry of Serbia

In the comprehensive exchange of knowledge and the global networking of know-how from different areas and perspectives, we see IPG with the relevant industry 4.0 competence as a valuable partner and impulse generator for the further development of Smart Factory solutions.

Prof. Dr. Vidosav Majstorović

Professor Mechanical Engineering Faculty University of Belgrade

Future based, disruptive and out of the box thinking. Those who want to shape the future learn methods and skills in the "Certified Digital Procurement Manager" (CDPM) certificate course.

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Uwe Zahnd

Head of Purchasing | Management Member Plica AG

In the "Certified Digital Procurement Manager" (CDPM) certificate course teach Top advisers, who make the red thread in the well-structured course structure clearly noticeable. The final thesis enables the immediate transfer into the daily business.

Eduardo Stahel

Head of Purchasing Software + License Management Swisscom

The "Certified Digital Procurement Manager" (CDPM) certificate course opens the perspective for the current way of working in purchasing and gives new perspectives for a sustainable purchasing organization. The interaction of theoretical basics, practical examples and the work with concrete use cases provides the participants with a suitable tool for the implementation in their own company.

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Christoph Maier

Digital Procurement Manager Giesecke+Devrient Currency Technology

The challenges of a future purchasing structure in Purchasing 4.0 are manifold and decisive. With the certificate course "Certified Digital Procurement Manager", IPG has laid the foundation for us to be able to plan and implement a market-driven & strategic development at an early stage. The methods imparted are innovative and show a trend-setting analysis of upcoming necessities.

Enrico Florschuetz

Commodity Lead Buyer N3 Engine Overhaul Services

My expectations of the "Certified Digital Procurement Manager" (CDPM) certificate course in terms of content, quality and speakers were exceeded. Despite the packed six days, there was no shortage of group work; the class size was ideal for this. In each module we were able to practice the topics in a practical way and at the end we could embed them in the individual case study. I can use this "one to one" in my daily business.

Lukas Schenker

ICT Sourcing Manager Aargauische Kantonalbank

As one of the first classes to be allowed to complete the majority of the "Certified Digital Procurement Manager" (CDPM) certificate course online, the need for digitization was clearly demonstrated to us. Thanks to the exciting modules and the practical case studies, taking into account the entire value chain, my view was sharpened to think and act in digital processes.

Marcel D. Hess

Head of Procurement & Logistics Georg Utz AG

SUCCESS CASES on “Digital & Sustainable Value Chain and Process Transformation”