Answer
At the business level the most common analytic tool is value chain analysis. The value chain model highlights specific activities in the business where competitive strategies can be best applied and where information systems are most likely to have a strategic impact. Primary activities are activities most directly related to the production and distribution of a firm’s products or services. It include inbound logistics, operations, outbound logistics, sales and marketing, and service. Supporting activities make the delivery of a firm’s primary activities possible. Consist of the organization’s infrastructure, human resources, technology, and procurement.
Be better than the competition. That’s the mantra of most companies that are serious about winning the game. Areas of the organization most affected by leveraging technology are producing the product, getting it to the stores, and making the customer happy. Think of all the activities that go into getting the Cybernuts candy bar made, from procuring raw materials to actual production. Then consider how the candy bar gets from the factory to the store shelves. And what about all those product commercials? These are primary activities. Just as important are support activities: Human Resources, Accounting, Finance. These functions support the primary functions of Production, Shipping, and Sales and Marketing. The value chain model below will help an organization focus on these activities and determine which are critical to its success.
The detail of value chain model discussed in the Table 1 below.
