Information Technology

Value Chain (2006)

Information Technology Value Chain 2006

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The Information Technology value chain is comprised of several major product and service categories including: semiconductors, computers and communication devices, software, IT services, and telecommunications providers.

  • Semiconductors: encompasses the development and production of a variety of chips to serve as inputs for the hardware assembly and telecommunication industries, as well as a variety of non-IT consumer durables as well.
  • Software: the development of general operation systems and application software
  • Computers and Other Electronic Communication Devices: encompasses all hardware assembly, along with peripherals, storage and other components.
  • IT Services: IT Services include companies that produce services related to systems integration, software development, installation, and support.
  • Telecommunications providers: provide access to communication networks.

The figure above represents these basic sectors within the value chain and how they are connected to each other. Some of the stages directly integrate themselves into the supply chain of other sectors, such as semiconductors and software into computer manufacturing. However, this is not the only application for semiconductors or software. Semiconductors also go into many other devices and software can also be sold as a stand-alone product. In another scenario, IT Service corporations might develop new software solutions to produce a unique product for their clients. Furthermore, telecommunications providers provide access to information that can be transmitted by the computer and communication technology devices.

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