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Business Intelligence Applied: Implementing an Effective Information and Communications Technology Infrastructure by Michael S. Gendron

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Organizations, Supply Chains, Value Chains, and Processes

All organizations have supply chains and value chains. Within its own value chain, an organization can have a number of processes that add value by processing raw materials into final products. Those materials are processed into products through a value-added effect. Processes within an organization's supply chain and value chain will represent specific core competencies. When you compare the supply chain of an organization to its value chain, you will nearly always find an overlap.

A supply chain includes the supplier of raw materials, manufacturing and operations, distribution, retail outlets, and, of course, customers. Sometimes the supply chain is created by a number of partners (other external organizations) that are providing services to the organization. Sometimes many segments or aspects of the supply chain are performed within the organization itself. The supply chain reach of an organization may extend or vary from being its own supplier of raw materials to having its own retail outlets and dealing directly with customers.

Supply chain reach is largely a function of the type and size of an organization and its core competencies. Reach affects which business processes should come under the scrutiny of the business analyst. If the supply chain is largely composed of external partners that interact with the organization, then the organization may have little control over its supply chain operations. For this reason, ...

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