The book is chaptered using the Porter value chain enabling business readers to survive the IT jargon.
01-01.Inbound Logistics 01-02.Operations 01-03.Outbound Logistics 01-04.Marketing and Sales 01-05.Services 02-01.Procurement 02-02.Technology development 02-03.HR management 02-04.Firm infrastructure
1.1. Primary activities¶
Inbound logistics include the receiving, warehousing, and inventory control of input materials.
Operations are the value-creating activities that transform the inputs into the final product.
Outbound logistics are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.
Marketing & Sales are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc.
Service activities are those that maintain and enhance the product’s value including customer support, repair services, etc.
1.2. Support Activities¶
The primary value chain activities described above are facilitated by support activities. Porter identified four generic categories of support activities, the details of which are industry-specific.
Procurement - the function of purchasing the raw materials and other inputs used in the value-creating activities.
Technology Development - includes research and development, process automation, and other technology development used to support the value-chain activities.
Human Resource Management - the activities associated with recruiting,development, and compensation of employees.
Firm Infrastructure - includes activities such as finance, legal, quality management, etc.
Support activities often are viewed as “overhead”, but some firms successfully have used them to develop a competitive advantage, for example, to develop a cost advantage through innovative management of information systems.