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. Value networks scale from shop floor work teams to global networks. They reflect the very natural way people organize around roles to work together.
Why Value Networks?
Processes are not the active agents of innovation in organizations – people are!
Businesses must master how intangibles and relationships create value.
Value Network Modeling solves the “Two Worlds Problem”
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For many businesses intangibles represent 50-70% of their value. Yet businesses invest most of their efforts in technology and processes.
Business processes and the world of human interactions have been treated as two complementary but separate business management arenas.
Tools and methods for managing business processes rarely address human issues. Tools and practices to improve collaboration and working relationships are rarely linked strongly to specific improvements in business processes.
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Value Network Analysis brings together these two worlds of business performance for powerful breakthroughs to lower costs, reduce risk, and increase profitability.
Increasingly – the ability to form strong relationships, and a capacity for mutually beneficial collaboration are the foundations for success.
Companies recognize the next stage of business optimization will come from visualizing and defining their internal and external value network ecosystems.
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Fifteen+ years of business results
More accurately depict business performance
Manage complexity and systemic risks
Understand value from a network perspective
Generate better predictive intelligence
Forge stronger networks and alliances
Optimize flows, roles, and interactions for greater value
Effectively deploy tangible and intangible assets
Meet audit, compliance, and reporting requirements
Create robust strategies for network business
Break through structural barriers for better knowledge flows
Sharpen negotiation of service level agreements
Make needed support visible for better work group performance
A Next Generation Business Modeling Approach
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 this new level of business complexity.
These highly structured approaches are designed to drive out variation. Yet, in complex environments variation is not only a given – it is desirable. Balancing structured and informal interactions is essential to support innovation.
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
What does Value Network modeling provide?
 Value Network Analysis (VNA) provides a powerful network ecosystem perspective into how processes and people create value.
It shows both structured relationships and the informal yet essential flow paths of knowledge sharing and support – that are required for sustainable, resilient, and innovative enterprise.
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 practice designed to support productivity growth and innovation.
It complements more traditional social network analysis beautifully. However, Value Network Insights™ is the only application that readily handles Social Network Analysis (SNA), Organizational Network Analysis (ONA), and Value Network Analysis (VNA)
Learn more: Comparison Chart for Business Modeling Methods
Value networks focus on the way value is created
VNA provides a powerful network perspective into how processes and people create value. VNA furnishes optimal organizational effectiveness. VNA shows unique relationships and transactions. Critical sequences or “flow paths” are visualized. Analysis with business process tools is built in.
It is the only network analysis method that can link directly to financial and non-financial scorecards, including industry, society, and the environment, which are embedded in the value network data model.
This makes VNA a value contribution to tangible and intangible asset management and helps to optimize resources.
Value Network Analysis is:
Conceptually simple – easy to learn
Fast – people make real breakthroughs in complexity in just hours
Robust – links network activity to financial impacts and asset management
Comprehensive – defines business transactions and support needs
Visual – with application support for visualization and integration with corporate data
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 | 
