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Step 1 Assess the information intensity of the value chain (i.e. the level and usage of 

information within each value chain activity and between each level of activity). The 

higher the level of intensity and/or the higher the degree of reliance on  good‑  quality 

information, the greater the potential impact of new information systems.

  2 

Step 2 Determine the role of IS in the industry structure. It is also important here to 

understand the information linkages between buyers and suppliers within the indus‑

try and how they and competitors might be affected by and react to new information 

technology.