Private Sector Value Chain Analysis

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The origin of this idea was built upon the insight that an organization goes beyond than gathering machinery, equipment, people and money to arrangement into systems and systematic activates that makes it possible to produce valuable products and services. Porter argues that being capable of performing particular activities and managing the linkages between these activities is a source of competitive advantage. Porter also distinguishes between primary and support activities. Primary activities are directly involved in products and services creation including inbound logistics as receiving, warehousing, and inventory control of input materials. Operations as the value-creating activities that transform the inputs into the final product, outbound…show more content…
Providing a quality service and creating public goods, competitive development and the growth of the county are ensured. So the public sector value chain is considered an adaptation of the private sector value chain. The difference between the two is that delivering services to the customer is the focus of the public sector, versus the profit focus in the private sector. There are significant similarities between the two chain models of private and public sector as each of the chain models are founded on a series of core components (Rapcevičienė,…show more content…
Information is considered the main product moving through the primary value chain for some industries for which the use of IT can result in significant improvements in its operational efficiency. McKenney and McFarlan (1982) studied IT intensive user firms, focusing on what they called informational islands that exists throughout different departments in a single organization. One decade later Glazer (1991) illustrated that measuring the intensity extent of information usage should be evaluated according to the degree to which its products and operations are based on the information gathered, processed and disseminated as part of exchanges that take place along the value chain. IT business value could be measured in terms of its benefits mainly, strategic, informational, transactional, infrastructure and transformational benefits (Carlos, et al., 2012). Information is considered as an arrangement of people, data, process, and information technology that interact to collect, process, store and provide information needed to support an organization, by this information system is an arrangement of groups, data, processes and technology that act together to accumulate, process, store and provide information output needed to enhance decision making process (Jalal,

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