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Unit 3: IT Impacts
The detail of value chain model discussed in the Table 3.1 below. Notes
Table 3.1
Activity Definition
Inbound logistics Materials receiving, storing, and distribution to
manufacturing premises.
Operations Transforming inputs into finished products.
Outbound logistics Storing and distributing products.
Marketing and sales Promotion and sales force
Service Service to maintain or enhance product value
Corporate infrastructure Support of entire value chain, such as general management,
planning, finance, accounting, legal services, government
affairs and quality management.
Human resource management Recruiting, hiring, training, and development.
Technology development Improving product and manufacturing process
Procurement Purchasing input.
Task Discuss the specific activities used in value chain model.
Self Assessment
Fill in the blanks:
6. The ................................ model highlights specific activities in the business where
competitive strategies can be best applied and where information systems are most likely
to have a strategic impact.
7. ............................. activities are activities most directly related to the production and
distribution of a firm’s products or services.
8. Areas of the organization most affected by .......................... technology are producing the
product, getting it to the stores, and making the customer happy.
3.4 MIS and Core Competencies
Management Information Systems (MIS) is the term given to the discipline focused on the
integration of computer systems with the aims and objectives on an organization.
The development and management of information technology tools assists executives and the
general workforce in performing any tasks related to the processing of information. MIS and
business systems are especially useful in the collation of business data and the production of
reports to be used as tools for decision making.
The field of MIS can deliver a great many benefits to enterprises in every industry.
Example: Expert organizations such as the Institute of MIS along with peer reviewed
journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve
business objectives.
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