In order for any business to stay ahead of its competition it must carefully monitor its resources allocating funds to each area of the business by the level of importance that area requires. Decisions that are made in this area are vital to the operation of the company. If an important department is not given the adequate funds that it needs to be completely beneficial while extra funds were given to a department that is able to be fully beneficial with less money then a serious mistake was made, perhaps costing the company their competitive edge. One way a company can avoid this is through the implementation of a value chain model. This will allow the company to see which departments are the most beneficial and require the most funding. One of the difficulties in making this model is deciding the importance of departments that do not directly produce or distribute products or services for the company. One example is the Technology Department. Although this department does not appear to directly make money for the company they contribute a considerable amount to those departments that do.Each company must therefore decide where the Technology Department lies in the value chain model. The easiest way to do this is by evaluating how much the department affects the others. All the departments in the company can be divided into two separate groups. The primary departments are those that deal directly with the production/distribution process, while the support departments support the primary departments. Although the Technology Department obviously lies in the support category they obviously should not be given reduced funding or less attention. The company must take into account how much the department increases the production/distribution process. Depending on the company the level of technology needed varies. Some companies must be on constant vigil ever increasing the level of their technology, while others can afford to...
