Implementing A Strategic Information System Through End-to-End Digitalization of The Value Chain In Agro-Food Sector

Abstract

The Fourth Industrial Revolution exerted significant emphasis on the value chain of the economic sector to keep abreast with the most recent developments in information systems and information technology. When formulating a strategy and making plans, practitioners make use of a variety of tools and instruments. Among the methodology used for strategic information system planning is Porter’s value chain technique. The majority of businesses are actively involved in primary or support activities as a mechanism of transforming inputs into outputs. More value is contributed to the products than the total value added by individual activities due to the chain of activities. The Malaysia Digital Economy Blueprint has recognized the importance of the agriculture sector in boosting the digital economy. One of the key features of the National Agro-food Policy 2021-2030 (NAP 2.0) is it focuses on transparency, ethics, and a secure digital environment in the agro-food sector. This is supported by several strategies including greater accessibility to data available and guiding industry players’ related value chains throughout the process of digital transformation. One of the strategies under policy thrust in NAP 2.0 is to drive end-to-end digitalization of the value chain through the process of converting physical products and information into digital equivalents. Thus, the objective of the paper is to discuss the use of digitalization throughout all stages of the value chain that will result in numerous benefits including improvement of the value chain’s efficiency and growth of the agro-food sector.