Value network analysis: Difference between revisions

Revision as of 22:57, 29 May 2008

Revision as of 11:11, 13 June 2008

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== Basics of value network analysis ==

Value network analysis addresses both financial and non-financial value. Every business relationship includes contractual or mandated activities between participants — and also informal exchanges of knowledge, favors, and benefits. The analysis begins with a visual map or diagram that first shows the essential contractual, tangible revenue- or funding-related business transactions and exchanges that occur between each node of the networks. AlthoughNodes nodesrepresent typicallyreal represent rolespeople, they can also betypically individuals, groups of individuals such as a business unit or aggregates of groups such as a type of business in an industry network. During analysis when adopting a reflective, double loop or generative learning mode, it is beneficial to regard nodes as role plays (shortened to roles). Practitioners have found that conversation between participants about role plays within a larger whole can result in transforming individual behaviour and gaining commitment to implementing needed change as elaborated below.

Along with the more traditional business transactions the critical intangible exchanges are also mapped. Intangible exchanges are those mostly informal knowledge exchanges and benefits or support that build relationships and keep things running smoothly. These informal exchanges are actually the key to creating trust and opening pathways for innovation and new ideas. Traditional business practices ignore these important intangible exchanges, but they are made visible with a value network analysis.

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[1] Allee, Verna. Value Network Analysis and Value Conversion of Tangible and Intangible Assets,

Journal of Intellectual Capital. ISSN: 1469-1930, Publisher: Emerald Insights, Year: 2008, Volume: 9, Issue: 1, Page: 5 - 24, Digital Object Identifier (DOI): 10.1108/14691930810845777

==See also==