3. How do the value chain and value web models help businesses identify opportunities for strategic information system applications?
a. Define and describe the value chain model.
The value chain model underlines certain activities of the business where competitive strategies and information systems will be applied well and will give impact to the business. In this case, this model concerns in identifying ways to improve business’s competitive position. It also views that a business or a firm is constaining specific activities that value the goods or services.
Those activities are classified into either primary and support activities. Primary activities is mostly related to the production and distributions activities and delivering value to the customer. The other hand, support activities take part in making the delivery of primary activities possible. There will be connection in the value chains between suppliers, distributors, and customers.
b. Explain how the value chain model can be used to identify opportunities for information systems.
Information systems are usefull for the business to provide or support the operational of a firm. One of the functions is to build good bonding or relationship between a firm, suppliers, distributors, and customers. As we know, value chain highlights how we can keep and improve the value of the goods or service and deliver it to the customer, then, there must be a good relationship between the provider and the user or customer in this case, to ensure that the firm is able to satisfy what is expected in the marker or field. Firm or business can also use information systems to determine the implementation or performance of the value-adding activities.
c. Define the value web and show how it is related to the value chain.
A value web is defined as a group of independent firms that optimize the information technology to control their value chains in producing and providing products and services. It will coordinate and synchronize the process of customers, suppliers, and business partners in various or different industries.
d. Explain how the value web helps businesses identify opportunities for strategic information systems.
It is surely helping the business in identifying opportunities. Value web can help a firm to make decisions especially in determining the most effective and efficient way to deliver products and services at the right price and place.
Information systems will let value webs be responsive and adaptive to the dynamic supply and demand, and it will make it possible for firm to establish value webs.
e. Describe how the Internet has changed competitive forces and competitive advantage.
We know that Internet has advantages and disadvantages based on how we use it. Started since a few years ago, Internet has changed the business model, from the offline shop to the online shop. A firm or seller can reach larger market using Internet or online way. This phenomenon could be a threat for some businesses who cannot adapt with this new model of business.
Many industries now expand their business through Internet. They can reach costumers without physically meeting them. The information could also be faster to be reached by people because the easiness of accessing Internet. It is for sure, contribute in reducing some costs of the business in more effective and efficient way.
Because of the Internet, people will prefer to entry the business and setting price alone. Because information is available to everyone, the Internet raises the bargaining power of customers, who can quickly find the lowestcost provider on the Web.