ValueNet Works

What is a value network?

• Any web of relationships that generates economic or social value through complex dynamic exchanges of both tangible and intangible benefits.
• Any purposeful organisation or network functions as a value network.

ValueNet Works™ Analysis

ValueNet Works™ Analysis was developed by Verna Allee, originally to benchmark extremely complex re-engineering projects. Since 1993, it has been used in global corporations and governments, as well as refined for the knowedge economy and scorecards (as reported in Digital Capital, Tapscott, 2000).

It has been used at large and small companies, including Cisco, HP, Boeing, Chevron, Pac Bell, AT&T, Sun, Eli Lilly, MWH, Environment Canada, Australian Red Cross, and AgResearch here in New Zealand.

Why and How

Increasingly, knowledge and other intangible assets such as competence, the ability to form strong relationships and a capacity for mutually beneficial collaboration are the foundations for success. Strong, value-creating relationships support innovation at the operational, tactical and strategic levels.

The value network approach helps individuals and groups better manage their interactions, balance workflows and improve communication. It can also scale up the business level to help forge stronger value-creating linkages with strategic partners and improve stakeholder relationships.

A ValueNet Works analysis begins with a network map that shows essential tangible transactions and exchanges within a purposeful network. It then also shows critical intangible knowledge exchanges and benefits that build relationships and keep things running smoothly. Traditional business practices often ignore these intangible exchanges, and we can make them visible with a ValueNet Works analysis.

The diagrams then link to a variety of analysis tools, so that we can leverage the knowledge gained from the network exchanges to improve financial or organisational performance and to find new value opportunities.

How it can be Used

• Stakeholder relationship management
• Organisational restructuring
• Process redesign
• Leveraging expert communities (communities of practice)
• Project planning
• Supporting innovation
• Knowledge Management

For Example

The network map below illustrates the traditional, tangible business transactions at Cisco.

Digital Capital , Tapscott, Ticoll, Lowy (2000) Future of Knowledge , Allee (2003)

In the network map below, you can now see what set Cisco apart. They had an extremely high number of knowledge and intangible exchanges with customers and partners, also with strategic alliances and even competitors. This was the key to their ability to partner and how they added value to their relationships.

Digital Capital , Tapscott, Ticoll, Lowy (2000) Future of Knowledge , Allee (2003)

For more information on ValueNet Works™ Analysis, please refer to Verna Allee's website.