Transforming the value chain
Information technology is permeating the value
chain at every point, transforming the way value
activities are performed and the nature of the linkages
among them. It also is affecting competitive scope
and reshaping the way products meet buyer needs.
These basic effects explain why information technology
has acquired strategic significance and is different
from the many other technologies businesses use.
Every value activity has both a physical and an
information-processing component. The physical
component includes all the physical tasks required to
perform the activity. The information-processing
component encompasses the steps required to capture,
manipulate, and channel the data necessary to
perform the activity.