The value chain components include the Inputs, Operations, Outputs, Marketing &
ID: 451982 • Letter: T
Question
The value chain components include the Inputs, Operations, Outputs, Marketing & Sales, and Customer Service. The value chain can be seen in relation to the “Game of Business” with inputs, operations, outputs being on the cost side of the game, with marketing and sales & customer service being on the value side of the game.
How has IT affected business in respects to the components of the value chain and the dimensions of cost and value in the “Game of Business”? Give specific IT examples from the readings and videos as they relate to the value chain and the game of business.
Discuss the above question for each of the following areas:
1) Discuss the overall concept of the value chain in light of IT in business.
2) Discuss each of the components of the value chain in relation to IT in business.
3) Choose one of the two following areas of the “Game of Business” and discuss how IT in business has affected that area.
(1) Cost side of the Game in relation to Inputs, Operations, and Outputs
(2) The Value side of the Game in relation to Marketing & Sales, and Customer Service.
Explanation / Answer
Information Technology has created a drastic difference in the way the business operates. In the "Game of Business" the inputs, operations and the outputs lie on the cost side of the game whereas Marketing, sales and customer service on the value side of the game. The inputs, operations and the outputs are on the cost side of the game since they are directly linked with the revenue of the company. It is measureable and it can be forecasted and estimated. In the case of Customer service it cannot be measured and hence it falls on the value side of the business. Marketing is directly linked with the sales and sales in turn will explain the goodwill of the company. The advancements in the information technology has added to the value of the business.
The growth of Information technology has affected the components of the value chain and the dimensions of cost and value in the “Game of Business” in the following ways.:
The Value side of the Game in relation to Marketing & Sales, and Customer Service has increased dramatically due to th growth of Information and tecnology as it has brought the worlds too closer. By connecting to skype we can directly talk with anyone across the world provided they have the internet connection. It is also possible to follow them in professional websites like LinkedIn. This has only contributed to the increase in sales and the customer service.
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