INFORMATION SYSTEM CRITICAL ANALYSIS Table of Contents Introduction:...............................................................................................................................2 Discussion:.................................................................................................................................2 Analysis of Latureae business model:........................................................................................2 Identifying major activities and sub activities of the business model using Porter’s value chain model:...............................................................................................................................2 Determination of specific sub activities creating value:............................................................2 Identifying link between value creating activities and sub activities:........................................2 Recommendation for maximizing the value offered to customers:...........................................3 Conclusion:................................................................................................................................3 Reference list:.............................................................................................................................3
INFORMATION SYSTEM CRITICAL ANALYSIS Introduction: The paper presents an analysis of the primary and secondary activities of the business model of Latureae using the Porter’s value chain model. In addition to this, all the sub activities of the primary and secondary activities are also identified along with determining the specific activities that helps the organization in creating value. Latureae is a health and wellness company with the vision of bringing wellness to everybody and was established in the year 2000. The organization carries out its operation in Australia and is well placed to serve their wellness needs with its strong culture of customer engagement and education and manufacturing and distribution. It also has the objective of creating a difference by delivering maximum potential capacity and optimizing the service delivery to their clientele. They intend to provide the quality care by utilizing their resources efficiently and thereby providing citizens with the vital healthcare (Visnjic et al., 2016). Moreover, the company has an in depth expertise in minerals, vitamin, nutrients and herb and incorporates a natural approach to health by developing its product and services. The report has been prepared for analyzing the sub activities of all the value chain activities of the organization. Such analysis would be directed to make recommendations to the management of Latureae on how they can enhance or maximize the value that is offered to the customers. Discussion: Analysis of Latureae business model: In this section, the Porters value chain model has been used for evaluating the business model of Latureae as such model helps in presenting the identification of the primary and secondary activities of the organization. The identification of the primary as well as secondary activities of the organization is facilitated splitting all the activities of the
INFORMATION SYSTEM CRITICAL ANALYSIS wellness company into a sequential stream of activities. The production process is considered crucial for the supporting activities with the primary activities having a direct contribution in the production. Primary activities of the organization comprised of outbound, inbound logistics, operations, sales, marketing and services (Prajogo et al., 2016). On other hand, secondary activities of Latureae comprise of technology, firms infrastructure, procurement and human resource management. Identifying major activities and sub activities of the business model using Porter’s value chain model: Considering the primary activities of Latureae, it has been found that such activities comprised of sales, operations, services and marketing. The activities of the company intends to contribute to the health, welfare and sustainable development of the communities. A natural approach is used by Latureae for serving the wellness and the health needs of Australians. Organization has a national manufacturing division and is engaged in the distribution of the products and offering the services. Moreover, engagement of the customers and education in the organization is supported by using their primary activities (Breuer & Lüdeke, 2017). Other primary activities include maintaining and promoting the wellness of the corporate customers such as supermarkets, health stores and professionals of health care. National and local suppliers of the company is related to the inbound logistics that assist in gathering sustainable and raw ingredients by maintaining high standard integrity (Rosca et al., 2017).
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INFORMATION SYSTEM CRITICAL ANALYSIS Meeting the wellness needs of the community is another primary activity of the company. Organizationmakeuseoftheplatformofecommercestreamofincome, supermarkets,healthfoodstoresandhealthcareprofessionalsformakingthe manufactured products reach the customers. Development of social media campaign and enhancing the total amount of online sales. Some other primary activities in which the organization is engaged is taking care of aging population who demand extra and better care from the wellness company (Bashir & Verma, 2017). There are different heads in the organization such as sales officer, chief financial officer, head of customer services, head of sales and chief marketing officer and they are responsible for managing all the primary activities of the organization. Latureae hires health catalyst that helps in engaging in the activities for managing the health of the population.
INFORMATION SYSTEM CRITICAL ANALYSIS The supermarket and retail clients are handled by the sales and marketing department of the company along with determining the profits of the company and the total amount of sales generated. Latureae make use of data integration for analyzing the data for supporting a wide range of cases of healthcare uses. Thebiosensingandwearablearedesignedbythecompanybyadoptingthe technology.Suchwearableaccessorieshelpstheorganizationindetectionof particular biometrics that is designed for specific customers. All the health records are maintained electronically using the clinical workflow platform along with supporting the clinical workflow and the applications comprising augmentations. Determination of specific sub activities creating value: This section presents the identification of different sub activities using the major activities of the company. Identification of the sub activities of several departments of Latureae are done and the human resource department comprising of head of sales, chief financial officer, head of customer service and production manager. All the financial operations and the decisions concerning it are handled by the chief financial officer which is considered to be the sub activities of the organization. There are various activities for which is supposed to be handled by the executive officer such as handling and managing the receivables for the sales of services and goods, execution of the payroll to the employees of company and making payments for the procurements of the input. Other sub activities such as handling the supermarket and retail clients are managed by the head of sales department. Market observation and strategies creation accounts for other sub activities that is handled by the chief marketing officers (Koc & Bozdag, 2017). In addition to
INFORMATION SYSTEM CRITICAL ANALYSIS this, the production manager is also responsible for managing other sub activities such as maintaining the quality of products, raw materials procurements from suppliers and managing the production process by handling team development. The sales and marketing department of Latureae works in collaboration to generate income and which turns ultimately into profits. Identifying link between value creating activities and sub activities: All the activities that the business is required to go through is explained with the help of value chain analysis. Being the distributor and manufacturer of wellness and health products, Latureae is required to create the value by acquiring the raw material from the suppliers and producing the products. Value is created by persuading the customers to purchase the products and this forms the part of sub activities of the head of sales department. The main source of value is the benefits offered to the consumers and the way they are communicated (Pearlson et al., 2016). Theprimaryfunctionissupportedbythehumanresourcedepartmentthatis considered to be the considerable value source. There would be creation of clear advantage due to the practice of good human resource and this would help in adding value in terms of maintaining and retaining customers and managing of suppliers (Corazza et al., 2017). In addition to this, the total amount of products generated by the organization is determined by the head of sales department. Therefore, it can be inferred from the analysis of several activities of Latureae, there exist a clear connection between the organization creating value and sub activities.
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INFORMATION SYSTEM CRITICAL ANALYSIS Recommendation for maximizing the value offered to customers: The total number of customer served by the organization has become significant with each of them adding value to the organization as a whole. The rising cost of healthcare and the uneven quality has caused the healthcare system to suffer. For addressing the issues, Latureae is required to design the program that would help in generating value for the customers by providing wellness service at the reasonable cost. In addition to this, there could be development of loyalty programs that would help in clearing loyal customer and thereby adding value to the business. The lifetime value of the customers can be created by customer retention because the cost incurred in retaining the customers is less than the cost incurred in acquiring new customers. Nevertheless, it is considered worthwhile for the organization to put some extra efforts for retaining the right customers. In addition to this, customers can be retained by developing a wide range of tactics saving the customers and guiding them on the products and educating (Lindmanet al.2016). Moreover, the sustainable cost of business can be added by developing the channel of low cost. The fact pertaining to the loyalty program implementation is rewarding and recognizing the customers for their ongoing contribution to the business. Conclusion: The value chain process of the organization has been evaluated in terms of the primary and secondary activities using the Porters model. From the analysis of all the activities of Latureae, it has been found that the organization is able to create values directly or indirectly using sub activities of their value chain. Furthermore, Latureae is recommended to develop various measures that helps in maximizing the value offered to the customers. For creating the value to the customers and adding to the benefits of organization, it is essential to implement the programs as recommended.
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