Current research in the field of pervasive information systems is predominantly focused on technical and engineering issues. In this paper, we look at the value chain boundaries of pervasive information systems as constituted by components from multiple industrial sectors. We identify a new value chain comprised of (1) infostructures, (2) devices, (3) interfaces, and (4) smart spaces that form the core elements of a pervasive information environment. We further investigate how businesses can achieve competitive advantage in this value-chain through the design and delivery of innovative products and services. Different stakeholders at each level of the value chain are identified with a goal of creating a virtually omnipresent range of services and delivery mechanisms. We survey current research in the area as well as specific firm-level strategies and business models to determine key success factors. Based on our survey, we develop a managerial framework for conceptualizing pervasive information systems in today's service-oriented organizations.