Monday, 21 November 2016

Value chain and information system: part 1

Hello readers, hope your weekend was good. Porter's value chain will be used to let you know the advantages an information system can provide you with. Hope you will gain a thing or two

 According to investopedia.com, "value chain is a high level model developed by Michael Porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various processes to create a finished good and then sell that end product to customers". Porter divided the value chain into two different activities which are the primary and support activities. The primary activities will be discussed in this article while the support activities will be discussed in the part 2 of this article. Here are the primary activities.

Inbound logistics
This has to do with buying, storing and the distribution of stocks. Information system can help control your stocks, ensuring that the right quantity  of stocks are ordered for at the right time. It can also make internal distribution more efficient.

Operations
This has to do with transforming raw-material into finished goods. The information system can be used to monitor the performance of all operational activities.

Outbound logistics
This has to do with making your products available to customers. Information system can be used to help you collate data about your customers which can be used for marketing purposes.

Marketing and Sales
This has to do with convincing individuals to purchase your product instead of the competitor's. Information system can be used to let you know the purchasing pattern of your customers which can be used to make your promotion more efficient and effective.

Services
This has to do with providing services to customers after the goods has been sold, as it will help maintain the value of your products. Information system can enhance the speed of your services.

That is all for today, thank you for reading this article. Keep checking out my blog regularly, cheers!


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