Study On The Value Chain Of The Industry Of Construction

Building industry is an important industry in national economy, the production value of which takes great part of Gross National Product. Although, it promotes the other industries' growth, such as timbering industry, metallurgical industry, light industry, chemical industry, machine-building industry, transportation industry; in building industry there are many problems, for example, chaos, inefficiency, decentralization, small scale, incompetence and so on. How to improve the competence of building industry? By using the value chain theory, the characteristic of building industry is analyzed in detail and the methods to build and enforce the competence of building industry have been put forward.First of all, the characteristic of value chain of building industry is analyzed. Firstly, the building activities are socialization of owner's basic facilities constructing, so they should meet owner's need. Secondly, the value system of building industry consists of all participants in the life circle of construction, and there is a trend of integration in this system. Most enterprises in industry of construction are managed by project and relations of them are similar to that of an enterprise which product 'project', so a mode of project value chain has been built. Thirdly, the steps to build virtual value chain have been established: informationization, interiorly integration, exteriorly integration, building virtual market space.Then, the mode of design-build is discussed using the characteristic of value chain of building industry. Nowadays, design-build is prevailing in industry of construction as a kind of vertical integration, on the contrary, in the other industries there is a trend of specialization which can set up core competence. The particularity of industry of construction, specially, uncertainty of its external conditions and frequent communication inside it, cause the vertical integration become a special sort of core competence. But the core competence may be weakened because operation cells are heterogeneity in the model of design-build.At last, the approach to applying value chain in corporation is demonstrated. First of all, the value chain of enterprise, opponents, suppliers, and clients must be understood profoundly, in addition, corporation must know the value chain of industry. Then, enterprise can choose value chain integration or disintegration according to the comparison of profit of exteriorization or interiorization. Thirdly, VC-BPB(Value Chain-Business Procession Reengineering) can be exerted to improve value-added flow. Meanwhile, the virtual value chain should be built step by step.