This report analyzes the business model of Latureae, a wellness and health company, and provides recommendations for maximizing value offered to customers.
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Running head: INFORMATION SYSTEM CRITICAL ANALYSIS Information system critical analysis Name of the Student Name of the University Author Note
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INFORMATION SYSTEM CRITICAL ANALYSIS Table of Contents Introduction:...............................................................................................................................3 Discussion:.................................................................................................................................3 Analysis of Latureae business model:........................................................................................3 Presentation of identified major activities and sub activities using Porter’s value chain model: ....................................................................................................................................................4 Determination of specific sub activities creating value:............................................................6 Identifying link between value creating activities and sub activities:........................................7 Recommendation for maximizing the value offered to customers:...........................................7 Conclusion:................................................................................................................................8
INFORMATION SYSTEM CRITICAL ANALYSIS Introduction: The report is prepared for identifying the primary and secondary activities of the business model of Latureae. Latureae is a wellness and health company operating in Australia with the objective of making difference amongst its clientele by optimizing the service delivery to clientsand maximumpotentialcapacity.The companyis engaged in the development of products and services that intend to develop a natural approach to health having an in depth expertise in minerals, vitamin, nutrients and herbs. They intend to provide vital healthcare services to the citizens of Australia by maximizing the quality of the care provided with resources efficiently (Ginter et al., 2018). In addition to the identification of all the primary and secondary activities, the sub activities of each of the primary and secondary activities are identified. Furthermore, the presentations of such identified activities along with sub activities are done through the model of value chain of Porter. The later part of report demonstrates the recommendations made to the management of Latureae for enhancing the value offered to customers. Discussion: Analysis of Latureae business model: The business model of Latureae is analyzed by evaluating the Porter’s value chain model that depicts the presentation of major activities and sub activities. All the activities of the wellness company are splitted into a sequential stream of activities that helps in facilitating the identification of primary and secondary activities.The primary activities in the value chain has the direct contribution to the production process and are considered more important that supporting activities. Such activities involve operations, inbound and outbound logistics, services, marketing and sales. Secondary activities on other hand involve any
INFORMATION SYSTEM CRITICAL ANALYSIS procurement, infrastructure of firms, technology and human resource management (Noe et al., 2017). The source of cost advantage enjoyed by company is determined by its primary activities. Presentation of identified major activities and sub activities using Porter’s value chain model: The primary activities of Latureae involve operations, service, sales and marketing. Latureae is engaged in the manufacturing and distribution of the products and services. In addition to this, its primary activities also lie in lending arms for supporting education and engagement of customers. The Latureae that relies on using a natural approach to health serves the wellness of the needs of Australians. The inbound logistics of company relates to the local and national suppliers. Latureae isengagedingatheringrawandsustainableingredientswiththeintegrityof maintaining high standards. They intend to promote and maintain wellness of their corporate customers such as specialist health stores, supermarkets and health care professionals. The products manufactured by Latureae reach customers using the platform of e commerceincomestream,healthfoodstores,supermarketsandhealthcare professionals. Another primary activity of the company is to meet the wellness need of community. Enhancing the volume of online sales by increasing and developing social media campaign. They are engaged into primary activity of providing service to aging population who demand a better and extra care from the wellness company.
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INFORMATION SYSTEM CRITICAL ANALYSIS The secondary activities of Latureae involve technology, infrastructure of firms, human resource management and procurement. All the primary activities of company is managed by the different heads of company such as chief financial officer, production of sales, head of sales, head of customer services and head of teams, chief marketing officer (Nigam et al., 2019). Determining the total sales generated by the company and ultimately the profit made. The marketing and sales department of company handles the retail and supermarket clients. With reference to technology, the company has adopted the technology for designing the wearable’s and biosensing.Such wearable accessories are designed for detecting specific biometrics, which are designated for customers (Michael et al., 2017). The company is engaged in activity of managing the population health by hiring the health catalyst. Theplatformofclinicalworkflowisdesignedforrecordinghealthrecords electronicallyand surrounding applicationsthat comprisesof augmentationand clinical workflow support.
INFORMATION SYSTEM CRITICAL ANALYSIS In order to support a wide range of cases of healthcare uses, Latureae is engaged in the analysis of data along with data integration. With regard to the marketing and sales activities identified as the part of value chain, it is placed in a way for attracting clients. Determination of specific sub activities creating value: In this section, the different sub activities with respect to the identified major activities have been presented.The sub activities of different department of Latureae are identified and such department of human resources comprised of chief financial officer, head of sales, production manager and head of customer service. The sub activities of the chief financial officer are to take decisions concerning all the financial operations of business so that a continuous profit is generated by business. They are responsible for engaging themselves in activities of executing payroll to the company employees, managing and handling receivable for the sales of goods and services and making payable for the input procured from suppliers. The head of sales department intends to manage the sub activities of handling retail and supermarket clients. Another sub activities managed by the chief marketing officer is creation of strategies and observing the market (Wheelen et al., 2017). Furthermore, the different sub activities managed by the production manager comprise of procurement of raw materials from the suppliers, maintaining the quality of products and handling the development team for managing the production process of Latureae. The sub activities of marketing and sales department work closely in terms of generating income and ultimately profits.
INFORMATION SYSTEM CRITICAL ANALYSIS Identifying link between value creating activities and sub activities: Value chain describes the full range of activities that the business has to go through. Since, Latureae is a manufacturing and distributor of the health and wellness products along with providing service, the value by such companies is created when the raw materials are acquired from suppliers to produce the products. The sub activities of the head of sales department help in creating value by persuading them to purchase their products. The way they communicate and benefits offered are considered as the source of value. The human resource department who are considered as significant source of value supports some of the primary functions. In addition to this, the good practices of human resource would help in creating clear advantage and they add value in terms of managing suppliers and retaining and maintaining customers (van et al., 2019).Furthermore, the head of sales determine the amount of products generated by company. Therefore, from the analysis of the various major activities of Latureae, it can be seen that there is a clear link between the sub activities and value creating organization. Recommendation for maximizing the value offered to customers: The company values each customer with a total number of customers being served comes to significantly large. The healthcare system is struggling due to uneven quality and rising healthcare cost. For creating value generated to customers, Latureae should engage in designing the programs that would enable them to offer wellness service to customers at reasonable costs. The value of customers can also be created by developing loyalty programs intended to retain loyal customers. Retaining customers should increase lifetime value of customers because the cost incurred in acquiring new customers is more than the cost of retaining existing customers. However, it is considered worthwhile for company to retain the right customers by spending some extra amount of efforts.
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INFORMATION SYSTEM CRITICAL ANALYSIS Latureae can use range of tactics for retaining the existing customers. This might include educating the customers on the products purchased by them and saving customers who provide an indication of not requiring the service and products anymore. Furthermore, moving the customers to the channel of low cost can help in adding substantial cost to business. The customers should be recognized and rewarded for the ongoing business that pertains to the implementation of the loyalty program. All such efforts would help the company in creating value to the customers. One of the important points that need to be considered is that efforts should be taken to reward the customer loyalty with the help of implementation of loyalty programs (Hitt et al., 2016). It is so because the case study provided specifically mentions about rewarding the customer loyalty. Conclusion: The analysis of the case of Latureae presents that the wellness company is engaged in several primary and secondary activities in their value chain process. The application of the model of Porters five force value chain helps in evaluating the major activities and the sub activities. From the analysis of all the activities, it has been ascertained that the sub activities in the value chain helps in creating value for organizations either directly or indirectly. The value offered to the customers can be maximized by adopting various measures that is intended to retain customers and rewarding their loyalty. Rewarding and retention of customers by Latureae can be done by the implementation of some programs and efforts as discussed above.
INFORMATION SYSTEM CRITICAL ANALYSIS Reference list: Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018).The strategic management of health care organizations. John Wiley & Sons. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016).Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning. Lim, C., Kim, K. H., Kim, M. J., Heo, J. Y., Kim, K. J., & Maglio, P. P. (2018). From data to value: A nine-factor framework for data-based value creation in information-intensive services.International Journal of Information Management,39, 121-135. Michael, S., Storey, D., & Thomas, H. (2017). Discovery and coordination in strategic managementandentrepreneurship.Strategicentrepreneurship:Creatinganew mindset, 45-65. Nigam, A., Johnson, R. A., Wang, D., & Chawla, N. V. (2019). Characterizing online health and wellness information consumption: A study.Information Fusion,46, 33-43. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017).Human resource management:Gainingacompetitiveadvantage.NewYork,NY:McGraw-Hill Education. vanVelthoven,M.,Cordon,C.,&Challagalla,G.(2019).Digitizationofhealthcare organizations:thedigitalhealthlandscapeandinformationtheory.International Journal of Medical Informatics. Viswanadham,N.(2018).Performanceanalysisanddesignofcompetitivebusiness models.International Journal of Production Research,56(1-2), 983-999.
INFORMATION SYSTEM CRITICAL ANALYSIS Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017).Strategic management and business policy(p. 55). Boston: pearson.
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