Fwd: Question on SIS and value chain

[William Toh]

---------- Forwarded message ----------
From: William Toh <engw...@gmail.com>
Date: Fri, Apr 7, 2017 at 9:52 PM
Subject: Re: Question on SIS and value chain
To: phoebe chee <topa...@hotmail.co.uk>

Please post different questions in different posts.  It makes discussions cleaner.  I will only address your question about value chains here.

A value chain is just a chain of activities that are needed for fulfill some customer needs.

Internal value chains occur inside the company, and are fully controlled by the company.

External value chains extend beyond the company, linking the company to its upstream suppliers and downstream customers.

Let's say you are trying to set up a blog shop to sell t-shirts to your customers.

Internally, you have to set up the e-commerce storefront, and manage interactions with your customers.  Since your customers interact directly with you, your external downstream value chain is very short.  It is just between you and your customers.  However, if you decide to list your products on Qoo10, then Qoo10 will become part of your external downstream supply chain that interfaces you with your customers.

Also, since it is unlikely you are making your own t-shirts, you will have to get them from some suppliers through Alibaba.com or Taobao.  That becomes your external upstream value chain.

On Fri, Apr 7, 2017 at 2:23 PM, phoebe chee <topa...@hotmail.co.uk> wrote:

Hi Mr Toh, 

I am a student from your Wednesday's ISORG lecture. May you kindly take some time to explain the  following to me? 

How does a SIS creates changes in the firm level, business level or industry level? The notes mentioned that it changes or supports the organisational goals, internal and external business processes or the products it sells

So the ATM for DBS for example Is a SIS, but how does it create changes in the different levels and does might it change the organisational goal?

Also, What's the difference between an internal value chain and an external value chain? 

Am I wrong to say that a value chain consists of a group of workers working together to meet an organisation goal and it contains a chain of value adding activities? the notes mentioned that it links the demand side to the supply side. (I don't rly get this) 

From what I can think of, the interval value chain consist of people from the various departments? Like outbound logistics to operations, input logistics, distributors, marketing Etc? But I'm unsure about what's an external value chain. 

Thank you.

Phoebe

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