ranashah007jb Started The Discussion:
Value Chain and Strategic IS :-
Value chain analysis which was developed by Michel Porter, is a technique which helps organization to access its resources and in so doing determine its strength and possible weaknesses. Value chain analysis looks at the activities that go to make up a product or services with a view to ascertain how much value each activity adds.
“Hence, the value chain analysis emphasis how managers and business professionals should try to develop a variety of strategic uses of internet and other technologies for those basic processes that add the most value to a company’s products or services and thus to the company.”
Value Activity :-
Primary Activity
i) Inbound Logistics : These are the activities associated with the procurement, storage and flow of inputs to the product like material handling, warehousing, inventory control, vehicle scheduling and return to suppliers.
ii) Operations : Activities involved to the transformation of inputs into final products.
iii) Outbound Logistics : These include activities which are associated with collection, storage and distribution of finished goods to the customers.
iv) Marketing and Sales : Advertising, Sales promotion, sales force management, channel selection channel relation and pricing.
v) Service : These are the activities aimed at providing services to enhance or maintain the value of the product like installation, repair, training, supply of parts and product adjustment.
Support Activities
i) Procurement : It includes purchase of material and service input, equipment and machinery etc.
ii) Technology Development : Technology involved in product designing and manufacturing processes requires activities to be performed and perfection and up gradation.
iii) Human Resources Management : Management of human resource- training, development, recruitment of manpower – is involved in each an every activity in value chain.
iv) Firm Infrastructure : These are the activities which considered as a whole to provide a infrastructure to the firm. They relate to general management, accounting and finance, legal affairs, strategic planning etc.
17th January 2011 From India, Delhi


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