1) The value chain is a connected series of activities, each of which adds value or supports the addition of value to the firm's goods or services.
The Value Chain consists of five main components:
Inbound Logistics (Receiving, warehousing and inventory control of raw materials)
Operations (Value-creating activities to transform raw materials into final product)
Outbound Logistics (Activities to get the final product to the customer)
Marketing and Sales (All the activities to get the buyer purchase the product by different means)
Service (Activities to maintain and enhance the value of the product)
By using IT a business can increase its competitive advantage by changing the value-adding activities themselves or by making it possible to configure the value chain in a new way.
Enterprise-wide systems and an ERP are used by the entire enterprise through a centralized database and coordinated software modules which helps to optimize information flow between and across activities. This allows IT to have an impact throughout the entire value chain.
For example Canada Post has improved organizational efficiency and effectiveness by deploying an ERP.
This ERP system created value by providing visibility throughout its delivery network and reduced costs through process standardization.
2) Concept (also known as pre-inception or idea phase): The environment within the organization either promotes or inhibits the development of ideas for systems
Inception: This phase begins when an organization has the idea to build an information system. The focus is on understanding the problem to be solved or the opportunity to be addressed and planning the project.
Elaboration: In this phase the project team finalizes the requirements for the system and the project plan, and designs the system architecture. The team also creates conceptual models of the systems and subsystems.
Construction: During this phase the team builds the initial running system. Usually, the team implements core functionalities first and then incorporates additional features.
Transition: At this time, the team finalizes the system and puts it in place. In addition, the team completes the final training of users and management of users during the transition.
Production: Once the system is up and running, the organization must continuously monitor, maintain, and evaluate it. The organization must also keep users of the system up to date with the latest modifications and procedures.
Retirement: At some point, the system may lose its value to the company. This phase often marks the concept of a new system to replace the obsolete one.
5) E-commerce is the use of information systems, technologies, and computer networks by individuals and organizations to carry out transactions in order to create or support the creation of business value.
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6) chief information officer (CIO) leads the organization's information and technology efforts, especially as it relates to the creation of business value, and should sit as part of the organization's top executive team. Additionally, the CIO must ensure proper and secure use of all the organization's information resources.