The Harvard Guru Michael Porter (1985) described in his book 'Competitive Advantage' that value for the customers can be created by efficiently linking and managing the series of primary and supporting activities in an organisation. Porter's Value Chain Model is represented in the diagram below. (NetMBA, 2002)
This model shows that inputs are taken in, processed and converted into outputs and finally sold to the customers to maximize profits. Lets take an in depth view of these activities to analyse the role of information technology.
By analysing the value chain of the company, we can identify that primary activities of the delivery team would be system architecture, system requirements, development of the system, test and implementation and finally deployment. After-sales service and technical support is the on-going facility that the company provides. In each and every activity, the company adds value to the previous stage to develop a differentiated product that satisfies the customer's needs. (Jenz, 2003)
Inbound Logistics - The inbound logistics for the software development company include the system architecture, the IT infrastructure and the system requirements.