2. Strategic Significance
Value chain with information technology for “Competitive advantage”
Convergent and linkage of technology that process the information.
Transforming the Value Chain
Transforming the Product
Direction and Pace of
Change
2
4. Information Technology in Value Chain
Planning model
Automated Personal Scheduling
CAD, Electronic Market Research
Online Procurement Part
Automated
warehouse
Flexible
Manufacturing
Automated
Order
Processing
Telemarketing
Remote terminal for sale person
Remote Servicing of
Equipment
Usage of Information Technology in Value Chain
4
6. Direction and Pace of change
Information content of Product Vs. Value Chain
Low
High
Low High
Value Chain
Product
6
7. Changing Nature of Competition
• Changing Industry Structure
• Creating Competitive Advantage
• Spawning New Business
7
8. Changing Industry Structure
IT can improving or eroding the attractiveness of industry
Information
Technology
Unfreezing Industry and Create New needs
8