Strategic Use of Information Systems

STRATEGIC USE OF INFORMATION SYSTEMS THROUGH THE VALUE CHAIN ANALYSIS

Value chain analysis identifies which activities best undertaken by the business and which should be sourced from outside. The rational is only to keep the activities which directly add value within the company and outsource other non value adding activities. This is done in order to focus on a few areas which are the key areas of improving the business.

How Dialog Telekom PLC adds value through information systems

The core areas of Dialog Telekom PLC are kept within the company while some of the support areas are outsourced. The importance of the information systems in such a scenario would be to focus on the key activities while keeping some co-ordination between the outsourced partners.

The activities of the organization are divided into two categories under the value chain concept. We use this framework and have done a basic division in order to better analyze the usage of the information systems.

• Primary activities: Activities which are directly concerned with creating and delivering value. These are recommended to be kept within the company. With reference to Dialog Telekom PLC such activities are network maintenance, operations, customer service, marketing and sales and etc.

• Support activities: Activities which do not directly add value. These are recommended to be sourced from specialist outsiders. With reference to Dialog Telekom PLC such activities are maintaining their premises, distribution network, technical services for installations, designing of support systems for the company and etc.

The following key points are identified in how Dialog Telekom PLC adds value through operating the primary activities and outsourcing the support activities.

• Dialog Telekom PLC does operate a wide network of distribution outlets island wide. Apart from a few outlets in some key towns, almost all of them are outsourced with agreements with distribution partners. To do this effectively...