Innovation and Value Chains: Implications Term Paper

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This occurs especially in the area of CRM, order management, supply chain management (SCM, and the continual evolution of Enterprise Resource Planning (ERP) systems as well (Raj, Pedersen, 2010). Taken together, these innovations focus on taking one aspect of the value chain and making it much more efficient than it has ever been in the past. In creating that efficiency there is also the potential for revenue uplift to customers as well, thereby creating greater value for them in the process (Leavy, 2010). This approach to innovation makes it extremely valuable for companies who rely on it and Is to run their businesses, and whose companies align with the Porter value chain and who need to operate in a highly coordinate, synchronized manner.

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Conclusion

Innovation in it and IS gradual in many of the enterprise software markets due to the resistance to change in many long-standing users of enterprise systems, but also because inefficiencies found throughout value chains translate into the greatest potential opportunities for a company to grow. The focus on it and IS innovation is one that centers on how best to create long-term value while streamlining value chains to make them as efficient and profitable as possible......

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