IVC involves defining information Requirement, Acquisition, Processing and Distribution with the secondary support of HR, IT infrastructure, Knowledge Management and Information Governance to convert abundant information for valuable information for use in decision making.
How IVC Gives Competitive Advantage
An important concept that highlights the role of IVC in competition is the “value chain” by Michael E. Porter. A business is profitable if the value it creates exceeds the cost of performing the value activities. To gain competitive advantage over its rivals, a company must either perform these activities at a lower cost or perform them in a way that leads to differentiation to charge premium price. (Porters Generic theory of Differentiation, Cost Leadership, Focus Strategy) Porters Value Chain Analysis (VCA) helps to identify sources of Competitive Advantages (CA) for a company over its competition by looking at the value activities in a broader perspective. Porter Identified a set of interrelated generic activities common to a firm namely Inbound Logistic, Operations, Outbound Logistics, Marketing & Sales and Service which facilitated by support activities such as Procurement, IT, HR and Infrastructure.
IVC helps to identify the sources of SCA in each Value Activities in Porters VCA by focusing each Primary Value Activities mentioned above....