This paper discusses that supply chain management will evolve toward value chain management and these value chains are not fixed through their product life cycles, but will change because the future products will change their functions by adapting to the changing situations. Up until now, we have been discussing hardware product realization, based upon our traditional concept that their functions remain fixed all through their life cycles. But if we look at software products, they are constantly customized and kept up to date. In other words, their functions are growing even after they are delivered to the customer. If such concepts as CALS, Rapid Prototyping, etc can be integrated into this concept and merged into one, then we would be able to realize value chain management in this sense.

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