IT Strategy Some Key Resources for Competitive Advantage Intellectual Property Data Brand Scale Network Effects Distribution Channels Alliances with complementary firms competitors Imitation resistant Value Chain Organization Example Publishing house Inbound receive paper ink master copies of things to be printed Operations set up job do printing runs Outbound logistics package books to be shipped Marketing sales handle relationships with publishers bookstores Service take back books that don t sell Virtual Value Chain Rayport Sviokla Original VC model treats information only as a supporting element But information itself can be a source of value Operate in 2 worlds Marketplace Marketspace Example answering machine vs voicemail service IT and the Value Chain Role of Information Technology Gathering information Organizing information Selecting information Synthesizing information Distributing information IT and the Value Chain Increase Visibility the ability to see physical operations more effectively through information Mirroring capability virtual activities are substituted for physical ones and parallel value chain in the virtual space evolves New customer relationships value is provided to customers in different ways
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