Information systems can be used at each stage of the value chain to improve operational
efficiency, lower costs, improve profit margins, and forge a closer relationship with customers and
suppliers. Organizations can use information systems to help examine how value-adding activities
are performed at each stage of the value chain. Information systems can improve the relationship
with customers (customer relationship management systems) and with suppliers (supply chain
management systems) who may be outside the value chain but belong to an extended value
chain. Information systems can help businesses track benchmarks in the organization and identify
best practices of their particular industries. After analyzing various stages in the value chain, an
organization can devise a list of candidate applications for information systems.