Using IS for Competitive/Strategic Advantage

Another important concept that can help you identify opportunities for strategic information systems is the value chain, developed by Michael Porter, which can highlight where competitive strategies can best be applied in a business:

Support processes

• Administration Coordination and Support Services
• Human Resources Management
• Technology Development
• Procurement of Resources

Primary Business Processes

• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• Customer Service

There is another important concept that can help you identify opportunities for strategic information systems. The value chain was developed by Michael Porter. It views a firm as a chain of basic activities that add value to a product or service. In the value chain conceptual framework, some business activities are primary processes (processes that make, deliver, market and sell, and service your organization’s products or services); others are support processes (processes such as management, accounting, finance, legal, human resources, research and development, and purchasing). This framework can highlight where competitive strategies can best be applied in a business.