Business functions, technology and data
Business functions and the value chain
Core functions include marketing, finance, human resources, operations and procurement. Porter's value chain separates primary activities (inbound logistics, operations, outbound logistics, marketing and sales, service) from support activities (procurement, technology development, HR management, firm infrastructure). The chain helps identify where value is added and where cost or differentiation advantage can be built.
Technology and data
Information systems support different management levels: transaction processing systems (TPS) record routine transactions; management information systems (MIS) produce tactical reports; decision support systems (DSS) support semi-structured decisions; executive information systems (EIS) give strategic summaries. ERP integrates cross-functional processes; CRM manages customer interactions; cloud, automation, AI and big data change how work is done. Data becomes information when processed, and knowledge when interpreted. Security, privacy (for example GDPR), data quality and cyber risk are governance concerns.
Traps: TPS is not strategic; ERP is not the same as CRM; primary and support activities are often mixed up; data is not information. Worked example: daily sales entries are TPS data; a monthly sales-variance report is MIS; a board dashboard of market-share trends is EIS. Rule of thumb: match the system to the management level and decision type.