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Added value is the portion of the total value created by an organization that would be lost i

Added value is the portion of the total value created by an organization that would be lost if the organization did not take part in the exchange of information. It is the unique portion of the total value created that is contributed by the organization itself, and depends on the effects of existing competition.

  1. Provide two examples of organizations that you think have been able to create value using IS. The first organization should have focused on the customers’ willingness to pay, while the second organization should have focused on supplier opportunity cost.
  2. Think about the last time you bought something that you felt was a “great deal.” Why do you think the product or service was a great deal? Do you think the firm you acquired the product or service from considered the transaction “great”? Why or why not?
  3. Provide an example of a firm that you think currently has added value. Explain your example using value analysis.

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