REPORT ON BUSINESS INFORMATION VALUE CHAIN 1

Report on Business Information Value Chain

Submitted to: -

Mr. Dibyesh Giri

Submitted by:-

Suraj Pd Simkhada

REPORT ON BUSINESS INFORMATION VALUE CHAIN 2

Introduction

A management information system (MIS) provides information that organizations require

to manage themselves efficiently and effectively. Management information systems are

typically computer systems used for managing. The five primary components:

Hardware, 

Software, 

Data (information for decision making), 

Procedures (design, development and documentation), and

People (individuals, groups, or organizations). 

Management information systems are distinct from other information systems because

they are used to analyze and facilitate strategic and operational activities.

Information system (IS) is the study of complementary networks of hardware and

software (see information technology) that people and organizations use to collect, filters,

and process, create, and distribute data. The study bridges business and computer

science using the theoretical foundations of information and computation to study various

business models and related algorithmic processes within a computer science discipline.

Information system is a set of components, peripheral devices.

Collects, retrieves, stores and distributes information. And from that information

knowledge is gained.

Easier and attractive environment.

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Business information : Raw data acquired and transformed through stages that input

transformed to outputs that generates information. Value of information system

determined in part by extent to which it leads to better decisions, greater efficiency, and

higher profits.

Business perspective: Calls attention to organizational and managerial nature of

information systems

Variation in Returns On Information Technology Investment

Although, on average, investments in information technology produce returns far above

those returned by other investments, there is considerable variation across firms.

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Value Chain and Strategic IS:-

Value chain analysis which was developed by Michel Porter, is a technique which helps

organization to access its resources and in so doing determine its strength and possible

weaknesses. Value chain analysis looks at the activities that go to make up a product or

services with a view to ascertain how much value each activity adds.

“Hence, the value chain analysis emphasis how managers and business professionals

should try to develop a variety of strategic uses of internet and other technologies for

those basic processes that add the most value to a company’s products or services and

thus to the company.”

Value Activity

Primary Activity:

i) Inbound Logistics : These are the activities associated with the procurement, storage

and flow of inputs to the product like material handling, warehousing, inventory control,

vehicle scheduling and return to suppliers. 

ii) Operations: Activities involved to the transformation of inputs into final products.

iii) Outbound Logistics: These include activities which are associated with collection,

storage and distribution of finished goods to the customers.

iv) Marketing and Sales: Advertising, Sales promotion, sales force management, channel

selection channel relation and pricing.

v) Service: These are the activities aimed at providing services to enhance or maintain the

value of the product like installation, repair, training, supply of parts and product

adjustment.

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Support Act5ivities 

i) Procurement: It includes purchase of material and service input, equipment and

machinery etc. 

ii) Technology Development: Technology involved in product designing and

manufacturing processes requires activities to be performed and perfection and up

gradation.

iii) Human Resources Management: Management of human resource- training,

development, recruitment of manpower – is involved in each an every activity in value

chain. 

iv) Firm Infrastructure: These are the activities which considered as a whole to provide a

infrastructure to the firm. They relate to general management, accounting and finance,

legal affairs, strategic planning etc.

The Business Information Value Chain

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From a business perspective, information systems are part of a series of value-adding

activities for acquiring, transforming, and distributing information that managers can use

to improve decision making, enhance organizational performance, and, ultimately,

increase firm profitability.