Chapter 2 The IT Value Chain: A Process Foundation

Is a firm a collection of activities or a set of resources and capabilities? Clearly, a firm is both. But activities are what firms do, and they define the resources and capabilities that are relevant.

—Michael Porter52

If we are going to run IT like a business, we must understand how businesses run.

THIS CHAPTER ESTABLISHES the analysis framework for this book. If we are going to run IT like a business, we must understand how businesses run. Some of IT’s problems can be traced to overly functional approaches, leading to silos and finger-pointing. Business theorists have been addressing this issue since the 1980s, and the most compelling framework has been the value chain, developed by Michael ...

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