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Value network analysis
Value Network Analysis
Verna Allee
Increasingly knowledge and other intangible assets such as human competence, the ability to form strong relationships, and a capacity for mutually beneficial collaboration are the foundations for success. Consequently, today we are shifting to a world of dynamic, rapidly adapting value networks — loose and complex configurations of industries, businesses, and business units within organizations that engage in mutually beneficial relationships. Tools used in the past to analyze business such as value chain and process models are too mechanistic to address this new level of business complexity.
- Processes are not the active agents in organizations — people are!
- Business models must demonstrate how knowledge and relationships create value.
- You cannot compete in a network economy by depending on hierarchies or a bureaucracy.
It is clear we need new lenses and tools to succeed in this current economic environment — tools that might feel as strange to us today as process flow charts did in the early days of Total Quality and reengineering. The approaches Verna Allee has developed, HoloMapping(tm) and ValueNet Works(tm) Analysis, support a more organic whole-system understanding of the value network or value web.
The core elements of the method are simple enough to master in only a few hours, with support from web-based tools and applications. If needed, learning is supported by coaches skilled in fast-track action learning processes. Competency development can be embedded into everyday projects in ways that bring immediate business results.
The Value Network approach helps individuals and work groups better manage their interactions and address operational issues, such as balancing workflows or improving communication. It also scales up to the business level to help forge stronger value-creating linkages with strategic partners and improve stakeholder relationships. An example might be helping companies build e-commerce webs, as featured in the best-selling book Digital Capital by Tapscott, Ticoll and Lowey.
For a detailed overview of a program introducing Value Networks Competencies to your organization see the roadmap whitepaper
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