what is value network analysis? · how do people create value? april 25, 2019 3 by assuming or...

Value Network Insights™

What isValue Network Analysis?

[email protected]

Verna Allee, CEO

Twitter@vernaallee

So why not model the work itself as a network?

People naturally network as they work.

April 25, 2019 2

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.

How do people create value?

April 25, 2019 3

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.

Allee, Journal of Intellectual Capital, January 2008Value Conversion Strategy

Utilize Assets

Tangible and Intangible Assets

Roles

Realize Value

FinancialAssets

HumanCompetence

Brand andRelationships

InternalStructure

Deliverables

Transactions


How Networks Create Value

April 25, 2019 4

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.

Allee, Journal of Intellectual Capital, January 2008Value Creating Network


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) convertsresources (inputs) to value outputs (value conversion)

� Where the value creation failure points are in the networks (problem flows, roles, mechanisms)

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.

April 25, 2019 5© 1997-2011 Value Networks, LLC All rights reserved.

Value Network Modeling

April 25, 2019 6

Roles

Intangible (Informal)

Interactions

Tangible (Formal)

Deliverables


Shift is to focus on Roles that are played by individual participants…


Tangible DeliverablesGoods, services, revenue (traditional value chain) –all contractual or mandated activities that directly generate or deal with revenue or funding.

…and Value Exchanges


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.

Intangible Deliverables

Formal (Tangible) Deliverables

April 25, 2019 9

AgResearchCommercialization

AgR Developers

License

Commercializers

AgR Investors

Proof ofConcept

Fees

IP

MarketParticipants

Orders

Products

AgR Researchers

ContractProposals

IP Rights

Ideas

ScienceFunders

Proof ofPrincipal

ResearchOutcomes

Investors

StrategicDirection

Terms ofReferernce

PaymentsStrategicDirection

Payout

Proof ofConceptRevenue

Market Research

Market Research

Concept

Can take up to twelve

years from idea to market.


Informal Deliverables Define Collaboration

April 25, 2019 10

AgR Developers

License

Commercializers

AgR Investors

Proof ofConcept

Fees

IP

MarketParticipants

Orders

Products

Market Pull

AgR Researchers

ContractProposals

IP RightsCredibility

ValidationIdeas

MarketFeedback

ScienceFunders

Prestige

Credibility

Proof ofPrincipal

ResearchOutcomes

Opportunities

Credibility

Credibility

Experts

CompetitiveAdvantage

Investors

StrategicCapability

StrategicDirection

Purpose

Referrals

PublicInformaiton

StrategicCapability

Terms ofReferernce

Opportunities

PaymentsStrategicDirection Market

Pull Payout

ExpertiseProof ofConceptRevenue

Market Research

Market Feedback

Market Research

Concept

Market Feedback

Purpose

Intangibles keep the

relationships alive.

AgResearchCommercialization


Realizing Value for Network Participants


Impact Analysis

How do we grow our financial and intangible assets from inputs?

Creating Value in and through the Network


Value Creation Analysis

What value offerings do we create tobest utilize our financial and non financial assets?

Value Network Indicators


Business Performance

NetworkVitality

Value Optimization

Brand &Relationships

•Value Creation•Value Realization •Intangible Asset Mgmt•Financial Impact

•Perceived Value•Reciprocity•Value Contributors•Innovation Pathways

•Resilience•Structural Dependency•Benchmarks•Agility and Stability

•Risk•Flow Path Optimization•Channel Management•Speed

Value Network Intelligence

13

ValueNetworks.comValueNetworks.com

A network view of the work itself


CITAP Inputer - RO_IDS

SOW Inputer - ROBCA SOW final validatorIntegrator of test requirements

Authorized management SOW approver(s)

Technical Designer-finalizer PO coordinator

IDS requirements researcher-author - SOW Initiator

Communication convener

Functional resource estimatorRO SOW Final Approver

Resource Owner

FOTV-BCA PO info advisor

ITAR_EAR Analyst-Determiner

RO RFP Creator

BCA RFP Reviewer

PIW Creator

Non-FTO_V estimate collector-checker-coordinator

SOW technical evaluator-reviewer

Non-FTOV estimate collector-checker-coordinatorFunctional SME

Authorized management PIW approver

PoP Adjuster

Coordinator

BCA SOW estimate and PoP validatorTest estimate reasonableness assessor

Test estimate collector-checker-documenter

Functional estimate approver

Test estimate requester

BCA estimate integrator

BCA PricerBCA Price approver

Expiration date assigner

BCA Proposal CreatorBCA cost policy reviewer

CITAP Project Manager

BCA work performer

BCA proposal implementer

Chargeline assigner

Job Number Assigner

IDS Proposal evaluator-acceptorauthorized management approver

IDS financial analyst

IDS Technical Analyst

IDS Cost Analyst0

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Performance and Agility

© 1997-2011 Value Networks, LLC All rights reserved. April 25, 2019 15

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.

Our Company


Applications for (value) network visualization, analysis, optimization

Unique value network analytics and predictive intelligence

Expert guidance, training, services

Value Network

Applications(SaaS)

Value Network BI

and Analytics

PredictiveIntelligence

ExpertServices

Blog at www.valuenetworks.comLinkedIn ValueNetworks.com Value NetworksTwitter @valuenetworks and @vernaallee

what is value network analysis? · how do people create value? april 25, 2019 3 by assuming or...

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