Asset Impact and Cost/Benefit Analysis for a Value Network

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."

Note that Asset Impact indicators are greatly augmented by conducting a Perceived Value analysis.Once the impacted Asset has been identified the next question is, “Does the transaction have a positive or negative impact on the asset? When the Deliverable is received how is it going to impact the overall asset picture?” For example, completion of a financial transaction would provide a positive Benefit for Financial Assets. Completion of a knowledge Deliverable might have a positive Benefit on Human Competence. Completion of a regulatory compliance transaction might have a negative Cost financially. It might also have an even greater negative Cost on Internal Structures by taking valuable IT time and resources.

The first chart shows the overall Cost/Benefit Impact of transactions in the network, distributed by the Asset Type. The next three charts examine Cost/Benefit Ratio from All Transactions, then from Intangible Transactions only, and finally from Tangible Transactions. The final two charts show Cost/Benefit Distribution and Percentage by Role.

Other topics in this series: