Information Systems Management Essay

1494 Words May 20th, 2012 6 Pages
1.1 - How do the value chain and value web models help businesses identify opportunities for strategic information system applications?

A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activities' values.

In order to better understand the activities leading to a competitive advantage, one can begin with the generic value chain and then identify the relevant firm-specific
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In simple terms, a value web is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively. A value web is a collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively

1.2 - Define and describe the value chain model. Explain how the value chain model can be used to identify opportunities for information systems.

The value chain model highlights specific activities in the business where competitive strategies can best be applied and where information systems are most likely to have a strategic impact. The model identifies specific, critical leverage points where a firm can use information technology most effectively to enhance its competitive position. The value chain model views the firm as a series of basic activities that add a margin of value to a firm’s products or services. The activities are categorized as either primary or support activities. Primary activities are most directly related to production and distribution of the firm’s products and services, which create value for the customer. Support activities make the delivery of primary activities possible and consist of organization infrastructure. A firm’s value chain can be linked to

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