Value Network Insights
What is
Value Network Analysis?
Verna Allee, CEO
Twitter
@vernaallee
verna.allee@valuenetworks.com
People naturally network as they work.
So why not
model the
work itself as
a network?
Value Network Analysis models value creation with a powerful
human network approach to managing any business activity.
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
How do people create value?
By assuming or creating roles
to convert their tangible and intangible assets into deliverables
that can be conveyed to other roles through the execution of a transaction.
In turn, value is realized by companies when they convert inputs into gains.
Transactions
Roles
Utilize
Assets
Deliverables
Realize Value
Tangible and Intangible Assets
Financial
Human
Brand and Internal
Assets Competence Relationships Structure
Value Conversion Strategy
Allee, Journal of Intellectual Capital, January 2008
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
How Networks Create Value
Value networks are sets of roles and value exchanges that generate a specific
kind of value. Any purposeful activity can be understood as a value network.
Value Creating Network
Allee, Journal of Intellectual Capital, January 2008
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
Value Network Analysis Discovers
How the work actually gets done
The kind of value you are really creating
How efficiently your organization (and
the network it supports) converts
resources (inputs) to value outputs
(value conversion)
Where the value creation failure points
are in the networks (problem flows, roles,
mechanisms)
1997-2011 Value Networks, LLC All rights reserved.
Value conversion is
the act of altering or
transforming one
type of value into
another, such as
transforming an
Intangible asset into a
Tangible Deliverable.
February 14, 2011
Value Network Modeling
Tangible
(Formal)
Deliverables
Roles
Intangible
(Informal)
Interactions
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
Shift is to focus on Roles that are played by
individual participants
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
and Value Exchanges
Tangible Deliverables
Goods, services, revenue (traditional value chain)
all contractual or mandated activities that directly
generate or deal with revenue or funding.
Intangible Deliverables
Knowledge and support offerings strategic information,
collaborative design, plans, processes, policy
development, etc.
Benefits that go beyond actual service such as
exchanging business contacts, image enhancement,
recognition, co-branding opportunities, etc.
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
Formal (Tangible) Deliverables
Orders
Market
Participants
Proof of
Concept
Revenue
Products
Commercializers
AgResearch
Commercialization
Market Research
AgR Developers
Payments
Strategic
Direction
Investors
Fees Payout Proof of License
Concept
Market
Research
Concept
Proof of
Principal
IP
AgR Investors
Strategic
Direction
Science
Funders
IP Rights
Research
Outcomes
Proposals
Contract
Terms of
Referernce
1997-2011 Value Networks, LLC All rights reserved.
Ideas
AgR
Researchers
Can take up
to twelve
years from
idea to
market.
February 14, 2011
Informal Deliverables Define Collaboration
Market Pull
Expertise
Proof of
Concept
Revenue
Orders
Competitive
Advantage
Market
Participants
Market
Feedback
Products
Commercializers
AgResearch
Commercialization
Market Research
Market Feedback
AgR Developers
Opportunities
Experts
Payments
Strategic
Direction
Credibility Market Fees Payout Proof of
Pull
Concept License
Market
Research
Prestige
Concept
Proof of
Principal
IP
Market
Feedback
Credibility
Purpose
Strategic
Capability
Strategic
Credibility
Direction
IP Rights
Strategic
Research
Capability
Outcomes
Proposals
Contract
Investors
AgR Investors
Science
Funders
Purpose
Public
Informaiton
Terms of
Referernce
Credibility
AgR
Researchers
Validation
Ideas
Opportunities
Intangibles
keep the
relationships
alive.
Referrals
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
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Realizing Value for Network Participants
Impact Analysis
How do we grow our financial and
intangible assets from inputs?
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
11
Creating Value in and through the Network
Value Creation Analysis
What value offerings do we create to
best utilize our financial and non financial assets?
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
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Value Network Indicators
Business
Performance
Value
Optimization
Risk
Flow Path Optimization
Channel Management
Speed
Value Creation
Value Realization
Intangible Asset Mgmt
Financial Impact
Value Network Intelligence
Resilience
Structural Dependency
Benchmarks
Agility and Stability
Network
Vitality
1997-2011 Value Networks, LLC All rights reserved.
Perceived Value
Reciprocity
Value Contributors
Innovation Pathways
Brand &
Relationships
February 14, 2011
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A network view of the work itself
0
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1997-2011 Value Networks, LLC All rights reserved.
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Performance and Agility
More accurately depict business performance:
Identify quickly how the work really happens.
Activate your networks with a business focus.
Design work flows that work better (improve performance).
Align business processes and human interactions.
Monitor and Predict when work processes are at risk.
Improve performance of any business activity.
Realize greater value from collaboration.
1997-2011 Value Networks, LLC All rights reserved.
February 14, 2011
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Our Company
Applications for (value) network
visualization, analysis, optimization
Unique value network analytics
and predictive intelligence
Value
Network
Applications
(SaaS)
Value
Network BI
and
Analytics
Predictive
Intelligence
Expert
Services
Expert guidance, training, services
Blog at www.valuenetworks.com
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Twitter @valuenetworks and @vernaallee
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February 14, 2011
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