Value network

Clayton Christensen defines a value network as: "The collection of upstream suppliers, downstream channels to market, and ancillary providers that support a common business model within an industry.

Fjeldstad & Stabell and Christensen's concepts address how a Company understands itself and its value creation process, but they are not identical.

Christensen's value networks address the relation between a Company and its suppliers and the requirements posed by the customers, and how these interact when defining what represents value in the product that is produced.

Verna Allee defines value networks as any web of relationships that generates both tangible and intangible value through complex dynamic exchanges between two or more individuals, groups or organizations.

Revealing the hidden network patterns behind business processes can provide predictive intelligence for when workflow performance is at risk.

Allee says value network analysis can lead to profound shifts in perception of problem situations and mobilize collective action to implement change.

[5] All exchanges of goods, services or revenue, including all transactions involving contracts, invoices, return receipts of orders, requests for proposals, confirmations and payments are considered to be tangible value.

Our relationships with other individuals also progress through the same circular free flowing process as we search for outcomes that are best for our well-being.

A value network approach considers relationships as two-way value-creating interactions, which focus on realizing value as well as providing value.

[7] Product and service offerings are constantly changing – and so are the processes to innovate, design, manufacture, and deliver them.

A value network analysis helps communities of practice negotiate for resources and demonstrate their value to different groups within the organization.