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Strategic Intelligence & Value Chain Management May 20, 2007

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The value chain is a business management concept that was first explained and made popular by Michael Porter.

The value chain classifies the generic value-adding activities of an organization. The “primary activities” include: inbound logistics, operations (production), outbound logistics, marketing and sales, and services (maintenance). The “support activities” include: administrative infrastructure management, human resource management, Research & Development, and procurement. The costs and value drivers are identified for each value activity.

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