Value-Chain Analysis of a Rural Health Program: Toward Understanding the Cost Benefit of Telemedication



Abstract

This research paper covers the thorough study of the cost benefits of telemedicine in the rural areas which are discussed in Porter's Value Chain Analysis model. This paper also deals with different component which are explained in this model and also discuss the importance of this model in the process of strategic planning.

Value-Chain Analysis of a Rural Health Program: Toward Understanding the Cost Benefit of Telemedication

Introduction

Porter's Value Chain Analysis model explains the benefits of cost effectiveness of telemedicine in rural areas. These benefits are discussed in a very wide and extensive range. The health care in the rural areas have been so much facilitated due to the invention of telemedicine. There is a wide range population in the rural areas; therefore, it requires a lot of extra expenses in order to cope with these distances. The process of telemedicine has eased the facility of health care in the rural areas with the quality of cost effectiveness and other major benefits.

Components of Porter's Value Chain Analysis model

There are several components mentioned in Porter's Value Chain Analysis model. These components carry immense importance in making the cost effectiveness and enhance general efficiency of a firm. These components not only help in determining the cost effectiveness of telemedicine but also help in mapping out the process of strategic planning. The components of Porter's Value Chain Analysis model are discussed further.

Inbound logistics

It is one of the major components which engage associations with suppliers and comprise all the actions necessary to disseminate inputs, store and receive. The inbound logistics is one of the most essential parts of this model as it determines the relationship of buyer, supplier and preserver or store keeper. In Porter's Value Chain Model the importance of inbound logistics is defined in a clear way. This component of the model enunciates the buying and supplying and selling quality of the company (Gamble, 2004).

Operations

It is also one of the key components of Porter's Value Chain Analysis model. The component of operation involves contain all those things which convert or tends to convert inputs into output. The essential things which are required to make this transformation process more effective are services and products. The conversion of inputs into outputs is very necessary at the right time. The whole management and the quality of a product depends upon the efficiency of transforming the inputs into outputs which are carried out by operations.

Outbound logistics

In Porter's Value Chain analysis model outbound logistics is also one of the major components. It involves all those actions compulsory to gather, accumulate, and sharing out the output which is received from operations.

Marketing and sales

Marketing and sales carry immense importance in Porter's Value Chain Analysis model because it is termed as the main component. Marketing and sales is considered to be the most effective tool of enhancing the value of any product. The selling rate of any product totally depends upon the way it is gone through ...