Value Network Insights™
What is
Value Network Analysis?
verna.allee@valuenetworks.com
Verna Allee, CEO
Twitter
@vernaallee
So why not
model the
work itself as
a network?
People naturally network as they work.
February 14, 2011 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?
February 14, 2011 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 2008
Value Conversion Strategy
Utilize
Assets
Tangible and Intangible Assets
Roles
Realize Value
Financial
Assets
Human
Competence
Brand and
Relationships
Internal
Structure
Deliverables
Transactions
© 1997-2011 Value Networks, LLC All rights reserved.
How Networks Create Value
February 14, 2011 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 2008
Value Creating Network
© 1997-2011 Value Networks, LLC All rights reserved.
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)
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 5© 1997-2011 Value Networks, LLC All rights reserved.
Value Network Modeling
February 14, 2011 6
Roles
Intangible
(Informal)
Interactions
Tangible
(Formal)
Deliverables
© 1997-2011 Value Networks, LLC All rights reserved.
Shift is to focus on Roles that are played by
individual participants…
February 14, 2011 7© 1997-2011 Value Networks, LLC All rights reserved.
Tangible Deliverables
Goods, services, revenue (traditional value chain) –
all contractual or mandated activities that directly
generate or deal with revenue or funding.
…and Value Exchanges
February 14, 2011 8© 1997-2011 Value Networks, LLC All rights reserved.
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
February 14, 2011 9
AgResearch
Commercialization
AgR Developers
License
Commercializers
AgR Investors
Proof of
Concept
Fees
IP
Market
Participants
Orders
Products
AgR
Researchers
Contract
Proposals
IP Rights
Ideas
Science
Funders
Proof of
Principal
Research
Outcomes
Investors
Strategic
Direction
Terms of
Referernce
Payments
Strategic
Direction
Payout
Proof of
Concept
Revenue
Market Research
Market
Research
Concept
Can take up
to twelve
years from
idea to
market.
© 1997-2011 Value Networks, LLC All rights reserved.
Informal Deliverables Define Collaboration
February 14, 2011 10
AgR Developers
License
Commercializers
AgR Investors
Proof of
Concept
Fees
IP
Market
Participants
Orders
Products
Market Pull
AgR
Researchers
Contract
Proposals
IP Rights
Credibility
Validation
Ideas
Market
Feedback
Science
Funders
Prestige
Credibility
Proof of
Principal
Research
Outcomes
Opportunities
Credibility
Credibility
Experts
Competitive
Advantage
Investors
Strategic
Capability
Strategic
Direction
Purpose
Referrals
Public
Informaiton
Strategic
Capability
Terms of
Referernce
Opportunities
Payments
Strategic
Direction
Market
Pull Payout
Expertise
Proof of
Concept
Revenue
Market Research
Market Feedback
Market
Research
Concept
Market
Feedback
Purpose
Intangibles
keep the
relationships
alive.
AgResearch
Commercialization
© 1997-2011 Value Networks, LLC All rights reserved.
Realizing Value for Network Participants
February 14, 2011 11© 1997-2011 Value Networks, LLC All rights reserved.
Impact Analysis
How do we grow our financial and
intangible assets from inputs?
Creating Value in and through the Network
February 14, 2011 12© 1997-2011 Value Networks, LLC All rights reserved.
Value Creation Analysis
What value offerings do we create to
best utilize our financial and non financial assets?
Value Network Indicators
February 14, 2011 13© 1997-2011 Value Networks, LLC All rights reserved.
Business
Performance
Network
Vitality
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
February 14, 2011 14© 1997-2011 Value Networks, LLC All rights reserved.
CITAP Inputer - RO_IDS
SOW Inputer - RO
BCA SOW final validator
Integrator of test requirements
Authorized management SOW approver(s)
Technical Designer-finalizer PO coordinator
IDS requirements researcher-author - SOW Initiator
Communication convener
Functional resource estimator
RO 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-coordinator
Functional 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 Creator
BCA cost policy reviewer
CITAP Project Manager
BCA work performer
BCA proposal implementer
Chargeline assigner
Job Number Assigner
IDS Proposal evaluator-acceptor
authorized management approver
IDS financial analyst
IDS Technical Analyst
IDS Cost Analyst
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Performance and Agility
© 1997-2011 Value Networks, LLC All rights reserved. February 14, 2011 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
February 14, 2011 16© 1997-2011 Value Networks, LLC All rights reserved.
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
Predictive
Intelligence
Expert
Services
Blog at www.valuenetworks.com
LinkedIn ValueNetworks.com Value Networks
Twitter @valuenetworks and @vernaallee

What is-value-network-analysis

  • 1.
    Value Network Insights™ Whatis Value Network Analysis? verna.allee@valuenetworks.com Verna Allee, CEO Twitter @vernaallee
  • 2.
    So why not modelthe work itself as a network? People naturally network as they work. February 14, 2011 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.
  • 3.
    How do peoplecreate value? February 14, 2011 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 2008 Value Conversion Strategy Utilize Assets Tangible and Intangible Assets Roles Realize Value Financial Assets Human Competence Brand and Relationships Internal Structure Deliverables Transactions © 1997-2011 Value Networks, LLC All rights reserved.
  • 4.
    How Networks CreateValue February 14, 2011 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 2008 Value Creating Network © 1997-2011 Value Networks, LLC All rights reserved.
  • 5.
    Value Network AnalysisDiscovers  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) 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 5© 1997-2011 Value Networks, LLC All rights reserved.
  • 6.
    Value Network Modeling February14, 2011 6 Roles Intangible (Informal) Interactions Tangible (Formal) Deliverables © 1997-2011 Value Networks, LLC All rights reserved.
  • 7.
    Shift is tofocus on Roles that are played by individual participants… February 14, 2011 7© 1997-2011 Value Networks, LLC All rights reserved.
  • 8.
    Tangible Deliverables Goods, services,revenue (traditional value chain) – all contractual or mandated activities that directly generate or deal with revenue or funding. …and Value Exchanges February 14, 2011 8© 1997-2011 Value Networks, LLC All rights reserved. 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
  • 9.
    Formal (Tangible) Deliverables February14, 2011 9 AgResearch Commercialization AgR Developers License Commercializers AgR Investors Proof of Concept Fees IP Market Participants Orders Products AgR Researchers Contract Proposals IP Rights Ideas Science Funders Proof of Principal Research Outcomes Investors Strategic Direction Terms of Referernce Payments Strategic Direction Payout Proof of Concept Revenue Market Research Market Research Concept Can take up to twelve years from idea to market. © 1997-2011 Value Networks, LLC All rights reserved.
  • 10.
    Informal Deliverables DefineCollaboration February 14, 2011 10 AgR Developers License Commercializers AgR Investors Proof of Concept Fees IP Market Participants Orders Products Market Pull AgR Researchers Contract Proposals IP Rights Credibility Validation Ideas Market Feedback Science Funders Prestige Credibility Proof of Principal Research Outcomes Opportunities Credibility Credibility Experts Competitive Advantage Investors Strategic Capability Strategic Direction Purpose Referrals Public Informaiton Strategic Capability Terms of Referernce Opportunities Payments Strategic Direction Market Pull Payout Expertise Proof of Concept Revenue Market Research Market Feedback Market Research Concept Market Feedback Purpose Intangibles keep the relationships alive. AgResearch Commercialization © 1997-2011 Value Networks, LLC All rights reserved.
  • 11.
    Realizing Value forNetwork Participants February 14, 2011 11© 1997-2011 Value Networks, LLC All rights reserved. Impact Analysis How do we grow our financial and intangible assets from inputs?
  • 12.
    Creating Value inand through the Network February 14, 2011 12© 1997-2011 Value Networks, LLC All rights reserved. Value Creation Analysis What value offerings do we create to best utilize our financial and non financial assets?
  • 13.
    Value Network Indicators February14, 2011 13© 1997-2011 Value Networks, LLC All rights reserved. Business Performance Network Vitality 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
  • 14.
    ValueNetworks.comValueNetworks.com A network viewof the work itself February 14, 2011 14© 1997-2011 Value Networks, LLC All rights reserved. CITAP Inputer - RO_IDS SOW Inputer - RO BCA SOW final validator Integrator of test requirements Authorized management SOW approver(s) Technical Designer-finalizer PO coordinator IDS requirements researcher-author - SOW Initiator Communication convener Functional resource estimator RO 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-coordinator Functional 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 Creator BCA cost policy reviewer CITAP Project Manager BCA work performer BCA proposal implementer Chargeline assigner Job Number Assigner IDS Proposal evaluator-acceptor authorized management approver IDS financial analyst IDS Technical Analyst IDS Cost Analyst 0 00 0 0 0 0 00 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 00 000 00 0 00 0 0 0 0 0 00000 0 00 0 00 0 0 0 000 0 0 0 0 0 0 0 000 0 00 00 0 0 0 00 0 0 00 0 0 000 0 0 00 000 0 0 0 0 0 00 00 0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0 0 0 0 0
  • 15.
    Performance and Agility ©1997-2011 Value Networks, LLC All rights reserved. February 14, 2011 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.
  • 16.
    Our Company February 14,2011 16© 1997-2011 Value Networks, LLC All rights reserved. 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 Predictive Intelligence Expert Services Blog at www.valuenetworks.com LinkedIn ValueNetworks.com Value Networks Twitter @valuenetworks and @vernaallee