Value Network Insights

What is
Value Network Analysis?

Verna Allee, CEO

Twitter
@vernaallee

verna.allee@valuenetworks.com

People naturally network as they work.

So why not
model the
work itself as
a network?

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.

February 14, 2011

How do people create value?

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.

Transactions

Roles
Utilize
Assets

Deliverables
Realize Value

Tangible and Intangible Assets

Financial
Human
Brand and Internal
Assets Competence Relationships Structure

Value Conversion Strategy

Allee, Journal of Intellectual Capital, January 2008
1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

How Networks Create Value

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.

Value Creating Network

Allee, Journal of Intellectual Capital, January 2008
1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

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)

1997-2011 Value Networks, LLC All rights reserved.

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

Value Network Modeling

Tangible
(Formal)
Deliverables

Roles

Intangible
(Informal)
Interactions
1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

Shift is to focus on Roles that are played by

individual participants

1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

and Value Exchanges

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

Intangible Deliverables
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.

1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

Formal (Tangible) Deliverables

Orders

Market
Participants

Proof of
Concept
Revenue

Products

Commercializers

AgResearch
Commercialization

Market Research

AgR Developers
Payments
Strategic
Direction

Investors

Fees Payout Proof of License

Concept
Market
Research
Concept
Proof of
Principal
IP

AgR Investors
Strategic
Direction

Science
Funders

IP Rights
Research
Outcomes
Proposals
Contract

Terms of
Referernce

1997-2011 Value Networks, LLC All rights reserved.

Ideas

AgR
Researchers

Can take up
to twelve
years from
idea to
market.

February 14, 2011

Informal Deliverables Define Collaboration

Market Pull

Expertise
Proof of
Concept
Revenue

Orders
Competitive
Advantage

Market
Participants

Market
Feedback

Products

Commercializers

AgResearch
Commercialization

Market Research
Market Feedback

AgR Developers

Opportunities
Experts
Payments
Strategic
Direction
Credibility Market Fees Payout Proof of
Pull
Concept License
Market
Research
Prestige
Concept
Proof of
Principal
IP
Market
Feedback
Credibility
Purpose
Strategic
Capability
Strategic
Credibility
Direction
IP Rights
Strategic
Research
Capability
Outcomes
Proposals
Contract

Investors

AgR Investors

Science
Funders

Purpose
Public
Informaiton
Terms of
Referernce
Credibility

AgR
Researchers

Validation
Ideas
Opportunities

Intangibles
keep the
relationships
alive.

Referrals

1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

10

Realizing Value for Network Participants

Impact Analysis

How do we grow our financial and

intangible assets from inputs?
1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

11

Creating Value in and through the Network

Value Creation Analysis

What value offerings do we create to

best utilize our financial and non financial assets?
1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

12

Value Network Indicators

Business
Performance

Value
Optimization

Risk
Flow Path Optimization
Channel Management
Speed

Value Creation
Value Realization
Intangible Asset Mgmt
Financial Impact

Value Network Intelligence

Resilience
Structural Dependency
Benchmarks
Agility and Stability

Network
Vitality

1997-2011 Value Networks, LLC All rights reserved.

Perceived Value
Reciprocity
Value Contributors
Innovation Pathways

Brand &
Relationships

February 14, 2011

13

A network view of the work itself

0
0
Test estimate
requester
Chargeline
assigner
0BCA
IDS
Technical
Analyst
0 Proposal
0
Creator

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BCA
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ITAR_EAR Analyst-Determiner
0 management approver
authorized
0 assessor
0
0
Test
Functional
estimate approver
BCA SOW estimate
and
PoPestimate
validatorreasonableness
0
0
0
Expiration
date assigner
BCA work performer
0
00 approver(s)
Authorized IDS
management
SOW
0
0 researcher-author
requirements
- SOW Initiator
0 Reviewer 0
0
BCA
RFP
0
IDS financial analyst
Non-FTO_V estimate collector-checker-coordinator

0
CITAP
Inputer
IDS Proposal
evaluator-acceptor
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Authorized0 management
PIW
approver
0
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Integrator
of test requirements
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final
validator
0
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Coordinator00
Functional
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0
RO SOW Final Approver
0 collector-checker-coordinator
0 0
0 Technical
Non-FTOV estimate
0 Designer-finalizer PO coordinator
Job
Number
Assigner
0
0
BCACITAP
estimate
integrator
0
Functional SME 0
Project
Manager
0

ValueNetworks.com

0
BCA
BCAPrice
Pricerapprover
0

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estimate
0collector-checker-documenter
00
technical
evaluator-reviewer

1997-2011 Value Networks, LLC All rights reserved.

0
FOTV-BCA PO info0advisor
0

0
0
Communication
convener
0 PoP Adjuster

February 14, 2011

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Performance and Agility

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.

1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

15

Our Company

Applications for (value) network

visualization, analysis, optimization
Unique value network analytics
and predictive intelligence

Value
Network
Applications
(SaaS)

Value
Network BI
and
Analytics

Predictive
Intelligence

Expert
Services

Expert guidance, training, services

Blog at www.valuenetworks.com
LinkedIn ValueNetworks.com Value Networks
Twitter @valuenetworks and @vernaallee

1997-2011 Value Networks, LLC All rights reserved.

February 14, 2011

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