role of information systems in business value chains

The Role of Information Systems
in the Business Value Chain



Strategic targeting and efficient production creates an effective and smooth-running business. The goal of businesses is to gain advantages over the competition by instilling a certain value in their products. Product differentiation, whether it is cost, quality, or convenience in acquisition, creates this value. Companies continually strive to become more efficient and effective by managing the supply-chain, or in other words, the value chain. The information systems employed in modern-day businesses help to create greater value for their products. Firms like State Farm Insurance, Sprint Corporation, and Wal-mart all incorporate different processes of business that work toward a better value chain model for the production of their goods. The value chain these companies create is largely based on technology and information systems (Laudon & Laudon, 2003).
Coordinating and implementing information system...