Value Chain Analysis Graded Review: The Information You Post

Value Chain Analysisgradedreview The Information You Posted For The Op

Review the information you posted for the Open Discussion. For this discussion, expand on the information you provided in that post. Overview: One way to examine e-commerce and its role in the business world is through value chain analysis. Michael Porter introduced the value chain concept in 1985. It consists of a series of activities designed to meet business needs by adding value (or cost) in each phase of the process.

Typically, a division within a business design produces, markets, delivers and supports its products or services. Each activity adds cost and value to the product or service delivered to the customer. Bidgoli, H. (2018). MIS (9th ed.). Boston, MA: Cengage Learning Your Topic: Think about providing value to your organization.

Review the image and how it relates to the value of an organization. The following describes the relationship between the activities: · The top four components—organizational infrastructure, human resource management, technological development, and procurement (gathering input)—are supporting activities. · The “margin†represents the value added by supporting primary activities (the components at the bottom). The following list describes primary activities: · Inbound logistics —Movement of materials and parts from suppliers and vendors to production or storage facilities; includes tasks associated with receiving, storing, and disseminating incoming goods or materials. · Operations —Processing raw materials into finished goods and services. · Outbound logistics —Moving and storing products, from the end of the production line to end-users or distribution centers. · Marketing and Sales —Activities for identifying customer needs and generating sales. · Service —Activities to support customers after the sale of products and services.

For this discussion, analyze the value chain for your industry value chain. For example: having superior relationships with suppliers (through prompt payments, electronic ordering, loyalty, and so forth), the company can ensure timely delivery and high quality of raw materials. These, in turn, add value for customers by providing a high-quality product at a lower cost. If good quality and lower costs are top priorities for customers, the company knows on which parts of the value chain to focus (e.g., better suppliers to ensure quality and reduce costs, superior operations to ensure quality, better distribution to reduce costs, better after-sales service to ensure quality with warranties). So, the value chain is really about understanding what aspects of an organization’s business add value for customers and then maximizing those aspects. · Identify your primary activities · Identify your secondary activities and how those relate to processes · Create value for your organization Look at this from the perspective as if you were working in that field.

Reference MIS project 1 and the initial work you have done. In your write-up address all these points, you will need to add these to your report and presentation later in this term. Requirements: This activity will provide you with the opportunity to research, analyze and synthesize current technologies and the use of those technologies in a real-world scenario as they relate to information systems. · Complete MindTap Case Study analyses & answer the questions: · M5 Case Study 9-1: Global Information Systems at Toyota Motor Company · M5 Case Study 8-2: Bridging the Gap Between E-Commerce and Traditional Commerce · Research current similar stores & new technologies, shopping innovations Case Study 8-2 Bridging the Gap Between E-Commerce and Traditional Commerce Various tools and technologies are helping to bridge the gap between e-commerce and traditional commerce, including mobile devices and social media.

Paper For Above instruction

Value chain analysis is a strategic tool that enables organizations to understand and optimize their operational activities to create maximum value for customers while minimizing costs. Rooted in Michael Porter’s seminal 1985 framework, the value chain delineates primary and support activities that collectively contribute to the firm's competitive advantage. Applying this framework to the e-commerce industry reveals insights into how modern technologies and processes enhance value creation across different segments of the supply chain, especially in the digital age.

Introduction

The evolution of e-commerce has transformed the traditional business landscape, demanding a nuanced understanding of how value is generated and delivered. The value chain analysis offers a comprehensive lens through which organizations can identify core activities that directly add customer value and support functions that underpin primary processes. This paper explores the application of value chain analysis within the industry, emphasizing current technological innovations, with particular focus on how e-commerce bridges traditional business models to enhance overall value.

Primary Activities in E-commerce

In the context of e-commerce, primary activities significantly shape customer satisfaction and operational efficiency. These include inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service. For instance, inbound logistics involves sourcing high-quality raw materials—such as secure, prompt deliveries from reliable suppliers—using electronic procurement systems that facilitate just-in-time inventory management. These mechanisms reduce waste and associated costs while ensuring the availability of products when demanded.

Operational activities encompass processing customer orders swiftly through integrated information systems, enabling real-time updates on product availability, order fulfillment, and customer communications. Outbound logistics are optimized through advanced tracking technologies, such as GPS and RFID, ensuring timely delivery and inventory transparency. Marketing and sales leverage digital platforms—social media, targeted advertisements, personalized recommendations—that amplify reach and engagement, translating to higher conversion rates.

Customer support post-purchase plays a pivotal role in building loyalty. Technologies like chatbots, AI-driven customer service solutions, and comprehensive warranty management systems improve after-sales service, reinforcing trust and satisfaction.

Supporting Activities and Technological Innovations

Support activities—organizational infrastructure, human resource management, technological development, and procurement—are vital in sustaining a competitive edge. Investments in robust IT infrastructure—cloud computing, cybersecurity, and data analytics—bolster primary operations, enhance decision-making, and secure customer data. Technological development fosters innovative customer engagement methods, such as augmented reality fitting rooms or virtual product tours, enriching the shopping experience.

Procurement activities are increasingly digital, utilizing electronic data interchange (EDI) and supplier portals to streamline orders, track shipments, and ensure high-quality raw materials. These underpin the entire value chain, reducing costs and improving service levels.

Application to Industry and Creating Customer Value

Understanding core value-adding activities allows organizations to allocate resources strategically. For example, in retail, establishing strong relationships with suppliers—through prompt payments and electronic ordering—ensures high-quality raw materials and timely stock replenishment. This creates value by enabling a seamless shopping experience and competitive pricing.

Focusing on technological advances—such as mobile shopping apps, near-field communication (NFC), and geolocation tracking—helps bridge online and offline experiences. In the case of Apple’s iBeacon technology, retail stores can personalize customer interactions, offer targeted promotions, and expedite in-store navigation, thus enhancing customer satisfaction and loyalty.

By optimizing primary activities and supporting functions using cutting-edge technology, organizations can deliver superior value—reducing costs, increasing efficiency, and improving customer experience.

Case Studies and Industry Applications

The case of Toyota’s global information system exemplifies how integrated information systems support lean inventory practices like Just-In-Time (JIT). Toyota’s Manufacturer-Dealer communication platforms, such as Dealer Daily, and Vehicle Order Management (VOM) across multiple countries exemplify how digital tools optimize supply chain responsiveness and reduce costs (Porter, 1985).

Similarly, innovations like Walmart’s electronic data interchange (EDI) and Amazon’s sophisticated warehouse automation exemplify how e-commerce companies leverage technology to streamline primary activities, thereby delivering value at scale.

Bridging traditional and e-commerce models explicitly involves emerging technologies like mobile shopping and social media engagement, which widen market reach and enable personalized experiences. Apple’s iBeacon and Qualcomm’s proximity beacons provide tangible examples of how real-time location data enhances in-store customer engagement, facilitating cross-channel integration (Qualcomm, 2014).

Conclusion

Applying value chain analysis in the e-commerce industry reveals how organizations can strategically leverage technology and operational excellence to generate enhanced value for the customer. Focusing on optimizing primary activities—such as logistics, operations, and sales—and supporting activities—like technological development and procurement—helps create a sustainable competitive advantage. As e-commerce continues to evolve with innovations like mobile devices, social media, and beacon technologies, organizations that adapt their value chains accordingly will be better positioned to succeed in the dynamic digital marketplace.

References

• Bidgoli, H. (2018). MIS (9th ed.). Boston, MA: Cengage Learning.
• Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
• Qualcomm. (2014). Qualcomm Gimbal Proximity Beacons: Transforming Retail. Qualcomm Technologies, Inc.
• Apple Inc. (2020). iBeacon Technology Overview. Apple Developer Documentation.
• Chen, J., & Popovich, K. (2003). Understanding customer relationship management (CRM): People, process, and technology. Business Process Management Journal, 9(5), 672-688.
• Laudon, K. C., & Traver, C. G. (2017). E-commerce 2017: Business, Technology, Society. Pearson.
• Chaffey, D., & Ellis-Chadwick, F. (2019). Digital Marketing. Pearson.
• Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 1-12.
• Turban, E., King, D., Lee, J. K., Liang, T., & Turban, D. C. (2018). Electronic Commerce 2018: A Managerial Perspective. Springer.
• Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2012). Supply Chain Logistics Management. McGraw-Hill Education.