(277e) Value Network Analysis: Tools and Paradigms for Building Healthy Ecosystems In Business

While many engineers and managers are trained to consider business operations in terms of linear supply chains and value chains, the actual structures we deal with in the new knowledge economy are typically complex non-linear ecosystems. Value creation in these ecosystems involves transactions of both tangible items as well as intangibles, which typically are not considered in mapping business processes. Yet much of the value created in a business comes from the benefits created by intangible transactions - exchanges of knowledge, giving advice, factors that generate loyalty and build relationships, etc.

Value Network Analysis is an approach that quickly help a business understand the structure, behavior, and health of the ecosystems it participates in, and to understand where value is actually being created. It provides tools for analyzing tangible and intangible transactions. Developed by Verna Allee and others in the knowledge management community, Value Network tools are proving their value in improving the way engineers, managers, and others approach projects and business problems. We will discuss our experience in applying Value Network tools to several problems, and share insights that may be helpful to engineers and managers in their work.