The Value Chain of Digital Companies
Nowadays, companies like Audi and HSBC use IT systems in everything they do. Does that make them more IT companies than banks? Most would agree that HSBC is a bank just as Audi a car manufacturer. But what about digital banks such as Chime or companies offering digital products? In digital companies, most of the employees work with developing software. Are they not, therefore, more IT companies? No, they are not but their primary activity is software development. Porter, in introducing his famous value chain model, divided the activities of a company in primary and support activities. The primary activities are those that are of utmost importance in adding value and giving the company a competitive advantage. Support activities, on the other hand, are those that support in making the…