Value Chain Analysis

Effectiveness

Adding Value

Efficency

Reducing Cost

Identify where & when IS/IT can be used to improve a business

Inbound Logistics

All those activities concerned with receiving and storing externally sourced materials

Just-In-Time ordering

Close to suppliers

Operations

The manufacture of products and services - the way in which resourceinputs are converted to outputs.

Build-to-Order

Customisation options

Outbound Logistics

All those activities associated with getting finished goods and services to buyers

Close to customers

The monitor example

Room for improvement / instant gratification

Evening delivery

Marketing and Sales

Essentially an information activity - informing buyers and consumers about products and services (benefits, use, price etc.)

China / Credit Cards / Shops essential

What about people who dont own computers?

Improve as a Lifestyle brand

Service

All those activities associated with maintaining product performance after the product has been sold

Service is Poor

People don't like offshore support, usually stressed when they call and this adds to their stress

If something goes wrong then PC has to be returned in the post

Procurement

sourcing and negotiating with materials suppliers

Lowering the bargaining power of intel and microsoft

Human Resource Management

Those activities concerned with recruiting, developing, motivating and rewarding the workforce of a business

Potential for spinning it off as a seperate business unit

Hosted Payroll

Technology Development

Activities concerned with managing information processing and the development and protection of "knowledge" in a business

Lagging behind in technology research and development

Infrastructure

Concerned with a wide range of support systems and functionssuch as finance, planning, quality control and general senior management

Reacting to problems by change in senior management