One of the most powerful benefits of value network modeling is the ability to monitor, predict and influence performance. Metrics are made simple with the Comprehensive Reports function in the ValueNetwork.com application. In addition to Animations and Detailed Visuals, indicator reports are generated for the Standard Value Network (Role view) and the Collaborative Value Network (Participant view). The text and charts below are drawn from a Standard Value Network (Role-based) Report, using the example of scheduling procedures in a health care organization. For other blogs in this series see the links at the end or simply search "Indicators and Metrics."
Risk
One kind of risk to the value network shows up in Role dependency. The risk is that the Role could be a bottleneck. If the Role is not adequately resourced then value flow pathways can be negatively impacted with time delays. If a Role cannot keep the value flows moving then it affects the speed of value creation and conversion in the network. A good cross check for whether the Role is a bottleneck is to look at the speed indicators to see if a potential bottleneck Role slows down the value flows.
The second risk factor is that if there is too much Structural Dependency on a Role then it can affect the entire network if something goes wrong. Structural Dependency is based on centrality, one of the most common structural indicators in network analysis. Centrality is about which Roles or Participants have the most ties or connections. In classic network analysis, high centrality is generally viewed positively as an indicator of prominence or high prestige. However, in value network analysis, extremely high centrality for any one Role or Participant may actually be a risk factor for the network!
Structural Dependency correlates to variance between the connections of all the Roles. We can assume that the higher the variance the more we are likely to find some Roles with many connections and others that have almost none. This means that power in the network is not well distributed. The wider the variance between numbers of connections between Roles, the higher is the risk to the network. The network might be unduly influenced or controlled by one or two Roles. In such cases the network might break down or disintegrate if those Roles for some reason disappear or are unable to perform.
Structural Dependency All Intangible Tangible
a) Highest Number of connections per Role
for Transactions 7 6 7
b) Lowest Number of connections per Role
for Transactions 2 1 1
c) Variance Transactions 2.69 2.30 3.19
d) Average number of connections per Role
for Transactions 3.75 2.25 3.25
Other toipcs in this series: | 
