Value chain is a model developed by Michael Porter to describe the series of activities that an organization undertakes to create value for its customers. It consists of two main categories: primary activities and support activities.

Primary activities directly contribute to the creation and delivery of a product or service. They include:

• Inbound logistics: The activities involved in receiving, storing, and distributing inputs. For example, a car manufacturer’s inbound logistics might include receiving steel, plastic, and other raw materials from suppliers.
• Operations: The transformation of inputs into outputs. In the car manufacturing example, operations would involve assembling the car components into a finished product.
• Outbound logistics: The activities involved in collecting, storing, and distributing finished products. This might include delivering cars to dealerships or customers.
• Marketing and sales: The activities involved in promoting and selling products or services. For example, a car manufacturer might use advertising and sales promotions to attract customers.
• Service: The activities involved in providing after-sales support and maintenance. This might include customer service hotlines, repair services, and warranties.

b. Impact of Information Systems on Supply Chain Performance

Information systems can significantly affect supply chain performance by:

• Improving visibility: Information systems can provide real-time visibility into inventory levels, production schedules, and transportation routes, enabling organizations to make more informed decisions and optimize their supply chains.
• Enhancing collaboration: Information systems can facilitate collaboration between suppliers, manufacturers, and distributors, improving communication and coordination.
• Reducing costs: Information systems can help reduce costs by streamlining processes, improving efficiency, and reducing waste.
• Increasing responsiveness: By providing real-time data, information systems can enable organizations to respond more quickly to changes in demand or supply.

c. Challenges of International Information Systems Management

1. Cultural differences: Different cultures may have different approaches to technology and data management, which can make it challenging to implement and manage international information systems.
2. Language barriers: Communication can be difficult when people from different countries and cultures do not share a common language. This can lead to misunderstandings and errors.
3. Legal and regulatory differences: Different countries have different laws and regulations governing data privacy, security, and intellectual property. This can make it challenging to ensure compliance with international standards.
4. Infrastructure differences: The quality and availability of technology infrastructure can vary significantly across countries. This can impact the performance and reliability of international information systems.
5. Political instability: Political instability and unrest can disrupt international business operations and create challenges for managing information systems.