Value Chain and the Use of Information
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1. Provide an empirical example of how the value chain works within an organizational setting.
2. Provide an empirical example of how data, information, and knowledge have transformed an organization.
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Solution Summary
This posting gives two empirical examples. How a value chain works and how information/ knowledge transforms an organization.
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The value chain is the actions by which a firm adds value to a product or service, The value chain includes actions such as procurement, manufacturing, marketing, and after-sales service. An empirical example of how a value chain works in an organizational setting is that of the value chain of Dell. The value chain of Dell is built to order where its products are custom-made to customer requirements (a). The Dell system is pulled to order. The orders for parts are placed in response to orders it receives. After the parts are delivered the assembly line at Dell commences the preparation of components. After that Dell starts manufacturing the computers. Next, these are tested and custom integration takes place for the finished product. Value is added every time to the product. To add value to its products, Dell uses a sophisticated manufacturing process that uses tracks, conveyor belts, and special hydraulic tools 9b). This reduces the need for human intervention and improves the overall quality of the computers. Dell's value chain is so sophisticated and well-developed that when Dell notifies its suppliers about what components are required, the suppliers deliver the components within an hour and a half. Dell process adds considerable value to the process by achieving a four-hour production cycle ...
Education
- MBA, Indian Institute of Social Welfare and Business Management
- BSc, University of Calcutta
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