Information System
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INFORMATION SYSTEM — IT
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Information System
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Information System — IT
Porter’s Value Chain Analysis
The value chain is the combination of organizational systems applied in creating
products and services. Porter’s value chain is a strategic framework employed to analyze an
organization’s value chain. The primary activities within this framework are used in giving
organizations a competitive advantage in their core activities to provide them with economies
of scale in the industries they operate
(Mozota 2010)
. As a powerful management tool,
Porter’s chain analysis is a collection of primary activities that have elements of marketing
sales, services, operations, and inbound and outbound logistics. The objective of these
activities is to create value exceeding the costs involved and generate profits. The question of
value creation is of fundamental importance to companies since it addresses the economic
logic of their existence
(Baltzan, Fisher & Lynch 2016
). The creation of value translates to
more profitability and building a competitive advantage. From Porter’s value chain analysis,
developing a competitive advantage can be achieved when organizations understand how
they create value and look into other ways of adding more value.
Manufacturing organizations achieve value creation by transforming raw materials
into finished goods, while retailing companies, such as Wal-Mart, assemble a range of
products in a building and present them in a convenient way to the customers. About 50% of
Wal-Mart products come from overseas suppliers, while more than 75% of their sales are
based on non-store stock, which is an inbound practice
(Meeks & Chen 2011)
. Wal-Mart uses
Porter’s value chain by ensuring minimum risks in the supply chain, which is achieved by the
ruthless elimination of competitors in the market. In addition, it has formed strategic
partnerships with other vendors and attempted to purchase the lowest prices with high
bargaining power to maintain cost leadership competitive advantage. Wal-Mart also runs
Information System
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outbound logistics, such as launching e-commerce websites, and strives to optimize its
outbound routing.
Roles and Responsibilities of the MIS Department
Management information systems are tools used by businesses to support the
operations, information technology, and business processes. The designations for the MIS
department are Chief Information Officer (CIO), Chief Security Officer (CSO), and Chief
Procurement Officer (CPO). The CIO makes managerial decisions regarding IT systems,
while the CSO ensures that security functions add value to the organization. The CPO
manages and supervises the organization’s acquisition programs
.
MIS produces data and
manages information that aid business in effective decision making. The roles and
responsibilities of the MIS department include planning, coordinating, and directing activities
within the organization. In addition, the MIS department is responsible for producing outputs
