Lecture 4: IS for Competitive Advantage (2)

Lecture 4: IS for Competitive Advantage (2)

1. Value Chain

   • Definition
     • Value: Amount that buyers are willing to pay for what firms provide for them
     • Series (Chain): Interdependent activities that create product's value for customer
     • Firm as a sequential process of value-creating activities
   • Core/ Primary Activities
     • Inbound Logistic: Receiving + stocking raw materials, parts, products
     • Operations: order processing + manufacturing of end products
     • Outbound Logistics: distribution of end products
     • Sales and marketing: pre-sale marketing activities
     • Customer service: post-sale activities
   • Supporting Activities