Introduction
• Information system is a system that uses the resources of people, hardware, software and communication technology to perform input, processing, output, storage, and control activities that convert data resources into information products.
• It can also be referred to as a set of interrelated components that collect or retrieve, process, store, and distribute information to support decision making and control in an organization.
• Components of information systems include: People resources (specialists and end – users); Hardware (computers etc); Software (programs and procedures); Data resources (databases, model bases, knowledge bases); Communications systems and; Information products (management reports, business documents etc.).
• From a business perspective, information systems are part of a series of value-adding activities (value chain) for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance (processes), and ultimately increase firm profitability.
• Value chain is series of activities a company performs to achieve its goal by adding values when each activity proceeds from one stage to the next one.
• Value chain analysis is examination of the value chain of an enterprise to ascertain how much and at which stage value is added to its goods and/or services, and how it can be increased to enhance the competitive advantage through product differentiation.
• The value chain analysis describes the activities the organization performs and links them to the organizations competitive position. It describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization.
• The value chain model highlights specific business activities where competitive strategies can be best applied and where