The Value Network tool describes and visualizes the broader network of stakeholders in the ecosystem around the innovation concept and helps clarify assumptions about how the concept could be implemented including the key activities, as well as the costs required and potential value drivers. It builds on the relationships defined in the Value Proposition Tool and helps define the details of the transactional exchange assumed in those relationships.
The goal of the Value Network is to help you articulate the key assumptions about the broader ecosystem around the solution hypothesis. These include dependencies on external parties required to implement the concept such as critical supplier, channel, or indirect influencer relationships.
Describing these relationships will help build out the digital representation of the ecosystem in the Project Model to aid in further analytics including the basis of the Project’s Economic Logic and key factors for monitoring and measuring the viability and success of the Project.
Key Activities– The Key Activities are those that need to be performed to both establish and maintain all of the direct the Relationships defined in the Value Network as well as developing and deploying all of the Offerings in those Relationships.
Economic Logic – – The economic logic is the relationships of the cost drivers and value drivers implied by the Value Network. The costs are driven by performing the Key Activities and Compensation to other network participants. The value streams are driven by the Compensation received by the company in exchange for the Offerings to all downstream parties in the Value Network. These will eventually be connected to the financial modeling and analysis of the solution hypothesis.
The resulting Value Network and implementation assumptions can then be visualized in a few ways:
Visualize as a Value Chain – This is a structured visualization of the actors and relationships that organized the actors by their role in the supply chain (relative to your organization or project) from left to right.
Visualize as a Network Topology – Coming in a future update - This is an interactive and dynamic representation of the Value Network relationships organized by the relative frequency and proximity of relationships.
