Information systems

Operations and
Maintenance
VALUE CHAIN MODEL
 Organization

A group of people working together to accomplish a goal.

Types of Organization:
• BUSINESS – seeks profit by providing goods and services
• NONPROFIT– accomplish goals that do not include
amassing profit
 Organization

Mission Statement:
The written expression of an organization’s mission.

BUSINESS NONPROFIT
To inspire and To advocate for the
nurture the human protection of children’s
spirit – one person, rights, to help meet their
one cup, and one basic needs and to expand
neighborhood at a their opportunities to reach
time. their full potential.
 Value Chain

Value Chain – All the business activities to create a product

from start to finish.

INPUT PROCESS OUTPUT

People, Money, Tools Construction Buildings
 Value Chain Model

MICHAEL E. PORTER

Primary Activities Support Activities

Actions that go into Help the primary
the creation of an activities in creating
organization’s offering competitive advantage
 Value Chain Model
PRIMARY ACTIVITIES
1. INBOUND LOGISTICS – how the raw materials and
resources are obtained from suppliers
2. OPERATIONS– how the materials and resources are
transformed to final products
3. OUTBOUND LOGISTICS – how the final product or
service is delivered or distributed to consumers
4. MARKETING & SALES – how the product or service is
presented and sold to the customers
5. SERVICES – how to maintain and enhance a product’s
value
 Value Chain Model
SUPPORT ACTIVITIES
1. FIRM INFRASTRUCTURE – all the management,
financial, and legal systems a business need
2. HUMAN RESOURCE MGMT. – systems involved in
managing employees and hiring new staff
3. TECHNOLOGY DEVELOPMENT – technologies used in
various steps of the value chain to gain an advantage
4. PROCUREMENT – how the resources and materials for a
product are sourced
 Value Chain Model
PRIMARY & SUPPORT ACTIVITIES
 FIVE-FORCES MODEL

• RIVALRY AMONG EXISTING COMPETITORS

• BARGAINING POWER OF CUSTOMERS
• THREAT OF SUBSTITUTE PRODUCTS
• THREAT OF NEW ENTRANTS
• BARGAINING POWER OF SUPPLIERS