Information Value Chain

Information Processing Information processing includes all observable processes involving the modification or synthesis of information resources acquired during environmental scanning. Examples of such processes are sampling, filtering, noise reduction and formatting. The value of information processing lies in the editing, preparation and representation of information resources for specific purposes. Like information acquisition, information processing is augmented throught the use of IT and policies governing the ways in which information is processed (eg, formatted, represented, stored and disposed of). Information Distribution Information distribution encompasses all activities aimed at the dissemination and sharing of information resources. Such activities could, for example, be e-mailing, training and educational sessions, intra/extra-nets, online collaboration or the publication of content through a website. Information Distribution adds value based on the principle Information is expensive to produce, but cheap to reproduce. It can be especially useful in knowledge management, enabling organisational members to share their expertise. Other typical areas of application are marketing, internal and stakeholder communication. Information technology in combination with information governance policies can also facilitate this primary activity. While the technology enables the seamless and speedy dissemination and sharing of information, policies regarding security, privacy, formatting and compatibility can greatly improve the quality and integrity of the distributed information resources. > Support Activities

IT Infrastructure IT infrastructure comprises all back-end and front-end systems an organisations deploys. These include storage devices, physical networks and computer hardware at the back-end, as well as word processors, ERP software or customer relationship management systems at the systems front-end. An organisations IT infrastructure adds value through business process automation, speedier information processing at higher quality and greater capacity. It thus reduces the risk of human errors and the time spent performing these processes manually. It is important that organisations align investments in IT infrastructure with their information requirements there should be a clear business reason for the deployment of a certain IT. Human Resources Human resources activities include the likes of recruitment compensation, training and development, career management, etc. and selection,

Human Resources add value by selecting and recruiting organisational members that understand the importance of information and fit into the learning culture of the organisation. The effective administration of compensation and incentives can also increase peoples willingness to share their tacit information resources. Generally, Senges five disciplines provide valuable directions for selecting people who will contribute to information value exploitation through a responsible attitude towards information resources. As such, the human resources function also has a part in enacting the organisations culture and shaping the organisational information ecology. Information Governance Information Governance encompasses the policies and internal guidelines for handling information resources ie, their acquisition, processing, distribution, storage, security, maintenance, disposal, etc. The value of information governance lies in the development of common organisationwide standards for treating information resources based on the organisations information requirements. Organisations can thus avoid security issues, litigation because of non-compliance with external regulatory requirements or compatibility issues and inconsistencies. It is important to note that, as with all bureaucratic instruments, a reasonable balance has to be struck between regulating information handling and actually obstructing it. Knowledge Management Knowledge Management as a support activity comprises processes with the objective of identifying, externalising, representing and distributing information resources that exist in the form of information-as-knowledge. This could be expertise, information about customers, processes, competitors, etc.

The value of knowledge management lies in the transformation of tacit information resources into manageable information products (Orna, 2006) and the resulting extension of the organisations information resource base. Furthermore, it facilitates individual and organisation learning and affects efficiency gains due to the reduction of redundant activities and duplications. With respect to knowledge management, it is organisational culture and information ecology that are important. Successful knowledge management requires above all the willingness among organisational members to share their expertise and insights. IT can greatly facilitate the externalisation, dissemination and sharing of information resources. Primary Value Chain Activities

Inbound Logistics

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Operations

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Outbound Logistics

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Marketing & Sales

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Service