ABSTRACT
This chapter provides both a descriptive and an analytical understanding of the supply and value chain for IT systems integration. The chapter explains which firms in the chain have power and how this impacts upon value appropriation. This is achieved using the following methodology. First, following the general discussion of the IT industry and the relevant theoretical perspectives, the chapter presents a descriptive mapping of the supply chain based on the key functional stages. Second, a descriptive mapping of the corresponding value chain, based on the revenues and gross profit margins typically being earned at each functional stage is presented. Finally, the chapter contains a discussion of the structures of power and the competitive dynamics, and by extension the appropriation of value, in the chain.
