BROWSE

Value Network

Definition

A value network is a business analysis perspective that describes social and technical resources within and between businesses. The nodes in a value network represent people. The nodes are connected by interactions that represent tangible and intangible deliverables. These deliverables take the form of knowledge or other intangibles and/or financial value. Value networks exhibit interdependence. They account for the overall worth of products and services. Companies have both internal and external value networks.

What is 'Value Network'

A set of connections between organizations and/or individuals interacting with each other to benefit the entire group. A value network allows members to buy and sell products as well as share information. These networks can be visualized with a simple mapping tool showing nodes (members) and connectors (relationships).

Explaining 'Value Network'

In business and commerce, value networks are an example of an economic ecosystem. Each member relies on the others to foster growth and increase value. Value network members can consist of external members such as customers or internal members such as research and development teams. Weakness in one node can affect the entire network. For example if a development team is weak, the production team has a harder time creating the product which, in turn, can leave a buyer waiting for their shipment.


Further Reading


Value network analysis and value conversion of tangible and intangible assets
www.emerald.com [PDF]
… the table can be customized for any financial and non‐financial scorecard; and. • … yet the struggle to come up with a viable theory of knowledge economics continues … Value network analysis can provide a systematic way for approaching the dynamics of intangible value realization …

Business Model Innovation Based on the Reconfiguration of Value Network <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GGYY201101009.htm' />Business Model Innovation Based on the Reconfiguration of Value Network [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GGYY201101009.htm'>PDF]
… the table can be customized for any financial and non‐financial scorecard; and. • … yet the struggle to come up with a viable theory of knowledge economics continues … Value network analysis can provide a systematic way for approaching the dynamics of intangible value realization …

Studies on the Enterprise Value Network Based on Modularity and Its Competence <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-ZYCY200707011.htm' />Studies on the Enterprise Value Network Based on Modularity and Its Competence [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-ZYCY200707011.htm'>PDF]
… the table can be customized for any financial and non‐financial scorecard; and. • … yet the struggle to come up with a viable theory of knowledge economics continues … Value network analysis can provide a systematic way for approaching the dynamics of intangible value realization …

Configuring value for competitive advantage: on chains, shops, and networksConfiguring value for competitive advantage: on chains, shops, and networks
onlinelibrary.wiley.com [PDF]
… the table can be customized for any financial and non‐financial scorecard; and. • … yet the struggle to come up with a viable theory of knowledge economics continues … Value network analysis can provide a systematic way for approaching the dynamics of intangible value realization …

Global Value Network and the Growth of Chinese Enterprises <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GGYY201112006.htm' />Global Value Network and the Growth of Chinese Enterprises [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GGYY201112006.htm'>PDF]
… the table can be customized for any financial and non‐financial scorecard; and. • … yet the struggle to come up with a viable theory of knowledge economics continues … Value network analysis can provide a systematic way for approaching the dynamics of intangible value realization …

From value chain to value network:: Insights for mobile operatorsFrom value chain to value network:: Insights for mobile operators
www.sciencedirect.com [PDF]
… the table can be customized for any financial and non‐financial scorecard; and. • … yet the struggle to come up with a viable theory of knowledge economics continues … Value network analysis can provide a systematic way for approaching the dynamics of intangible value realization …



Q&A About Value Network


Can members consist of external or internal groups?

Both external and internal groups can be members.

What is a value network?

A value network is a set of connections between organizations and/or individuals interacting with each other to benefit the entire group.

What are some methods used in VNA?

Some methods used in VNA include robust network analysis approaches for understanding the conversion of financial and non-financial assets into other forms of value.

Who are members in a value network?

Members can be organizations or individuals.

How can you understand value networks with VNA?

You can use VNA to understand the relationships between different parts of a system.

How does taxonomy support business reporting?

Taxonomies support business reporting by providing a structure for organizing information about an organization's activities, products, services or processes.

How does weakness in one node affect the entire network?

Weakness in one node can affect the entire network because it weakens the whole system. For example, if a development team is weak, production has trouble creating products which leaves customers waiting for their shipment.

What type of economic ecosystem do value networks represent?

Value networks are an example of an economic ecosystem where all parties rely on each other for growth and success.

What is value network analysis?

Value network analysis is a methodology for understanding, using and visualizing internal and external value networks and complex economic ecosystems.