before. The company website can be a sales channel itself. • Service . Service activity involves the functions a business performs after the product has been purchased to maintain and enhance the product’s value. Service can be enhanced via technology as well, including support services through websites and knowledge bases. The support activities are the functions in an organization that support all of the primary activities. Support activities can be considered indirect costs to the organization. The support activities are: • Firm infrastructure . An organization’s infrastructure includes finance, accounting, ERP systems (covered in Chapter 9) and quality control. All of these depend on information technology and represent functions where I.T. can have a positive impact. • Human Resource Management Human Resource Management (HRM) consists of recruiting, hiring, and other services needed to attract and retain employees. Using the Internet, HR departments can increase their reach when looking for candidates. I.T. also allows employees to use technology for a more flexible work environment. • Technology development . Technology development provides innovation that supports primary activities. These advances are integrated across the firm to add value in a variety of departments. Information technology is the primary generator of value in this support activity. • Procurement . Procurement focuses on the acquisition of raw materials used in the creation of products. Business-to- business e-commerce can be used to improve the acquisition of materials. This analysis of the value chain provides some insight into how information technology can lead to competitive advantage. Another important concept from Porter is the “Five Forces Model.” Porter’s Five Forces Information Systems for Business and Beyond (2019) pg. 148
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