Appeal 2007-2173
Application 09/682,701
4. The Appellants’ claimed invention is used to generate a cost estimate for
supporting price negotiations between a buyer and a supplier
(Specification 1:¶ 0002). As such, the output appears to be a cost
estimate reflecting costs associated with design and/or manufacture of an
item to be supplied by a supplier, and is thus but one link in the overall
value chain. As such, it appears that the Appellants are using value chain
in their claims in a manner inconsistent with the accepted definition of
this phrase.
5. The Specification fails to clearly explain or define a “supply tier.” While
the Appellants’ Specification does not use the phrase “supply tier,” it
does refer in several instances to a “supplier tier.” For example, the
activity: primary and secondary. Primary activities are concerned principally with
transforming inputs, such as raw materials, into outputs, in the form of products or
services, delivery, and after-sales support. Secondary activities support the primary
activities and include procurement, technology development, and human resource
management. All of these activities form part of the value chain and can be
analyzed to assess where opportunities for competitive advantage may lie. To
survive competition and supply what customers want to buy, the firm has to ensure
that all value chain activities link together, even if some of the activities take place
outside the organization. www.dictionary.bnet.com/definition/Value_Chain.html
3) Interlinked value-adding activities that convert inputs into outputs which, in
turn, add to the bottom line and help create competitive advantage. A value chain
typically consists of (1) inbound distribution or logistics, (2) manufacturing
operations, (3) outbound distribution or logistics, (4) marketing and selling, and (5)
after-sales service. These activities are supported by (6) purchasing or
procurement, (7) research and development, (8) human resource development, (9)
and corporate infrastructure. http://www.businessdictionary.com/definition/value-
chain.html.
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