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© 2008 Prentice-Hall, Inc.

Slide 12

Tomorrow’s Technology and You 8/e Chapter 12 Systems and Organizations

The Value Chain Model of a Business Organization

“Art is the beautiful way of doing things. Science is the effective way of doing things. Business is the economic way of doing things.”

         —Elbert Hubbard

One way to understand a business organization as a system is to use the value chain model, developed by Harvard professor Michael E. Porter.

According to the value chain model, an organization performs a series of activities to provide products and services for customers.

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