Value Network Analysis (VNA) considers value as an emergent property of networks. Underlying this approach is an understanding that intangible, but nonetheless strong relationships, and the intangible assets are the foundation of any successful business endeavor. An organisation consists of real people playing a variety of roles in different activities. Any role controls a set of tangible and intangible assets or resources that support execution of the role. Assets are used to create value outputs or deliverables that can be traded for other forms of value, whether financial or non-financial. Basically, each role initiates or offers a potential deliverable for trade that becomes a completed value transaction upon acceptance by another role in the network Mapping the value network: roles, transactions and deliverables A value network analysis begins with describing roles and value transactions visualized as a graph or map that shows the essential contractual, tangible revenue- or funding-related deliverables and their flow paths. Along with those it shows also the critical intangible, although informal deliverables such as knowledge exchanges and benefits that build relationships and keep things running smoothly. Any role controls a set of tangible and intangible assets or resources that support execution of the role. People playing roles are responsible for using the assets under their control to create value outputs or deliverables that can be traded for other forms of value, whether financial or non-financial. Basically, each role initiates or offers a potential deliverable for trade that becomes a completed value transaction upon acceptance by another role in the network. Recent developments in software applications for value network analysis now make it possible to work with large data sets to identify these network relationships and assess the value creation capacity and robustness of the network. (www.valuenetworks.com)
Analysing the value network Analysing a value network requires addressing three basic questions. The first question is about assessing the value dynamics, health and vitality, and value conversion capability of the system as a whole. The second and third questions concentrate on each specific role as it relates to value conversion. The basic questions are: (1) Exchange analysis: What is the overall pattern of exchanges and value creation in the system as a whole? How healthy is the network and how well is it converting value? (2) Impact analysis: What impact does each value input have on the roles involved in terms of value realisation? (3) Value creation analysis: What is the best way to create, extend, and leverage value, either through adding value, extending value to other roles, or converting one type of value to another?
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