ACHIEVING VALUE IN THE NETWORKED ECONOMY

As companies rethink the way they do business to maximize their relationships and improve on their individual and joint performance in the marketplace, they need a new framework to build upon. This new framework needs to identify the extended relationships and interdependencies between internal and external organizations that add value in today's economy.

The Value Network provides a holistic working model to identify relationships, activities, information flows and performance objectives associated with various strategies and business processes.

The Value Network business model has two levels, a company level (L0) overview (shown in the first several figures) and a more granular role-based level (L1), shown in the last figure. The model is highly adaptive to address any type of organization, industry or process involved in manufactured goods value networks.

The model is used to identify
•   Business processes that cross organizations
•   New application and technology requirements
•   Performance metrics or ROI
•   Strategic opportunities for growth and improvement
Value Network Model



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