Preemptively reexamine all value chain relationships (the functions that create and distribute an organization's goods and services). If they don't add value, get rid of them.
	Use digital technology to recraft the buying, selling, and producing processes and relationships.
	Amazon.com (pp. 149-151) bypassed the value chain of traditional bookstores by establishing a virtual book store on the Internet, without physical outlets. Customers have access to customized information, online searching, reviews, and ordering. Most books are delivered direct from publisher/distributors' sites. Amazon offers 2.5 million titles, with a lower cost structure than superstores, yielding price discounts of up to 40%. The result was almost $150 million in net sales in 1997, an 838% increase over the previous year.
	Virtual Fuel Company (VFC, pp. 147-149) is a new business model created by a home heating oil supplier that had little direct sales to end users (4% of the market, which yielded 70% of company profits). Keeping its indirect sales unit intact, the company eliminated its physical direct sales channels and built direct links to customers through Cyberspace. Orders are now placed via the Web, but soon sensors in customers' tanks will notify when to refuel, and the company has contracted with local transport companies to provide delivery. With no physical assets, this virtual model increases flexibility and efficiency. Internet ordering and automatic replenishment provide convenience to customers. Web presence and direct links expand the company's direct sales market.