When business process and management activities supports each other, it will increase profitability of

the organization. It also can ensure strategic position of the firm.

Business information value chain refers to the information system that supports the business process
(supply chain management, customer management, enterprise and knowledge management) and
management activities (planning, coordinating, controlling and modelling and decision making) of the
firm and increase the profitability and strategic position of the firm.// and ultimately lead to better
management decisions, more efficient business processes, and higher firm profitability.

From a business perspective, the information value chain recognizes the value activities required in the
use of information in any organization. Information systems are part of a series of value-adding activities
for acquiring, transforming, and distributing information that helps managers make better decisions or
that improves the execution of business processes. It also helps to enhance organizational performance
and increase firm profitability.

It is the full range of activities that involves design, production, marketing and distribution. For example
ABS is a manufacturing company, the value chain of this company will start with the raw materials that
will be used to make their products, and consists of everything which will add to it before it will be sold
to consumers. So the goal of value chain management is to ensure that those in charge of each stage of
the value chain are communicating with one another, to help make sure the product is getting in the
hands of customers as seamlessly and as quickly as possible. Business information value chain improves
company’s ability to capture, track and manage customer and marketing requirements to better
estimate design, planning, and procurement, production and service activities for more accurate cost
estimates — all with complete traceability.
Walmart has made extensive use of technology for better supply chain management and sales
as well as customer service.  From smarter apps for inventory management to ecommerce
websites it has used technology to gain efficiency. A number of technological tools are used to
keep the managers updated and the stores well supplied. Technology has become indispensable
for efficiency in the retail business.

One of the key focus areas at Walmart is procurement. It has managed strategic relationships
with its suppliers to keep costs of material lower. These suppliers provide standard products and
services as mentioned in the suppliers’ code.  

Human Resource Management: Walmart is in Fortune’s 100 Best places to work list though in past it
faced severe criticism for poor human resource management and surpassed that phase. There is open
communication between employees and organization to promote new ideas, take risks and to strive for
excellence. It focuses on employees’ career development by providing competitive wages and
comprehensive benefits like medical coverage, vacations, holiday pay etc. The employees are taught
that the customer is always right and to replicate the same.

Technology Development: At Walmart technology has been lifeline of organization and foundation of its
supply chain. With the help of technical tools the organization predicts inventory levels, efficient
transportation routes, forecasting demands, managing customer relationship etc. It has a central
database connected with satellite network incorporated at every level of supply chain. Walmart have
developed RFID system for inventory handling and smart tags for automated re-ordering of goods as
they move out of stores achieving greater operational efficiency across the chain

Procurement: Walmart manages the purchasing of its raw materials at lower cost by building strategic
relationship with its suppliers. These suppliers contribute by providing standard products and services to
meet the demand thus building relationship and streamlining production activities

2.2.2 Human resource management

Walmart can analyse human resource management by evaluating different HR aspects,
including- recruiting, selecting, training, rewarding, performance management and other
personnel management activities. The effective HR management can allow Walmart to
reduce competitive pressure based on motivation, commitment and skills of its
workforce. The company can also achieve its cost minimisation objectives by analysing
hiring and training costs with their relative return. The heavy dependence of Walmart on
employees' talent will increase the importance of this value chain support activity.

2.2.3 Technology development

In a modern, technological advanced era, almost all value chain activities depend on
technological support. The technological integration in production, distribution,
marketing and human resource activities requires Walmart to realise the importance of
technology development. It can be divided into product and process technological
development activities. Some examples are- automation software, technology-
supported customer service, product design research and data analytics. The research
and development department of Walmart is classified in this category.

2.2.4 Procurement
The procurement in value chain denotes the processes involved in purchasing the
inputs that may range from equipment, machinery, raw material, supplies, raw material
and other items necessary for producing the finished product. Due to its linkage with
multiple value chain activities, Walmart should carefully consider its procurement
activities to optimise the inbound, operational and outbound value chain.

As mentioned above, the application of Porter Value Chain model depends on

understanding the importance of all activities. After understanding the relative
importance of identified value chain activities, Walmart should highlight areas where
value can be added, cost efficiency can be achieved, differentiation basis can be set, or
processes can be optimised.