Value networks are the way people naturally come together around roles and resources to work together. The value network method of modeling and analysis reflects the true nature of work activity with a systemic human-network approach to managing business operations.
A value network is any set of roles and interactions that generates a specific kind of business, economic, or social good. It is a human-centric, role-based, network view of any business activity. Value networks can be internal or external facing.
Value network approaches provide powerful new practices and metrics for managing collaborative and innovative work. They provide ways to a) better support non-hierarchical organizations such as cross-boundary teams and task forces, and b) quickly and effectively model emergent work and complex activities that have multiple variables and frequent exceptions.
Processes are not the active agents of innovation in organizations - people are! Companies are recognizing that the next stage of business optimization will come from visualizing and defining their internal and external value network ecosystems.
__________________________________A next generation business modeling approach - to use now
Tools used in the past to analyze business value creation, such as value chain and process models, are simply too slow, inadequate, or inappropriate to address business complexity and the need for innovation.
These highly structured approaches are designed to drive out variation. Yet, in complex environments variation is not only a given – it is desirable. The value network approach shows both structured relationships and the informal yet essential flow paths of knowledge sharing and support.
By using SDM (System Dynamics Modeling) and
VNA (Value Network Analysis) the Flight Operations,
Test & Validation Group restructured its entire business model.
Boeing Frontiers, February 2008
The value network approach solves the "Two Worlds Problem"
Business processes and the word of human interactions have been traditionally been treated as two complementary but separate business management areas.
Tools and methods for managing business processes rarely address human issues. Tools and practices to improve collaboration and working relationships are rarely linkded strongly to specific improvements in business processes.
Value Network Analysis (VNA) brings together these two worlds of business performance for breakthroughs to lower costs, reduce risk, and increase profitability. VNA is a powerful network perspective into how processes and people create value for optimal organizational effectiveness.
Value network modeling and Value Network Analysis (VNA)
VNA does not make other management tools obsolete. It does, however, fill the analytical and managerial gap between other business tools. It makes possible a new generation of business practices designed to support productivity growth and innovation.
VNA complements more traditional social network analysis beautifully.
Learn more: Comparison Chart for Business Modeling Methods
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VNA and the ValueNetwork Works Analysis method
The ValueNet Works® approach to VNA readily integrates with Social Network Analysis (SNA), Organizational Network Analysis (ONA), and asset management and process modeling.
The methodology shows unique relationships, analyses transactions, and visualizes critical "flow path" sequences. It was developed by Verna Allee in the 1990s and has been made an open resource through her books and numerous academic articles.
The ValueNet Works® analytical approach links directly to financial and non-financial scorecards, including industry, society, and the environment. This makes VNA a valuable contribution to tangible and intangible asset management and helps to optimize resources.
Since 1993 the value network approach has been gaining business results in performance - from shop-floor work teams to global action networks.
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Value Network Analysis is:
Conceptually simple – easy to learn.
Visual – with our ValueNet Works application.
Validated – as part of ITIL, eTom, and other standards.
Respected – by scholars and academics.
Value Network Intelligence opens up a world of whole-system and network indicators to optimize organizational performance.
See also: Value Network Analytics
For a deeper explanation of our approach check out the free online book Value Networks and the True Nature of Collaboration at www.valuenetworksandcollaboration.com | 
