Innovation and Value Networks

Value networks, and an introduction to value network analysis, are a key part of understanding networks. The term is in wide use today, but for many of us its origins and deepest meaning come from Verna Allee and her 2003 book, The Future of Knowledge. Her definition:

A web of relationships that generates economic or social value through complex dynamic exchanges of both tangible and intangible benefits.

Verna’s insights led her to develop a mapping methodology, Value Network Analysis (VNA), which centers on a few basic differentiations:

* Separating people, titles, and job descriptions from roles. In a social network map, a node is a person. In a value network map, a node is a role, the actor responsible for a specific activity or set of activities.
* Focusing on the content of exchanges between roles. In a social network map, a link represents an aspect of a relationship; in a value network map, the link is the exchange of a named, identifiable deliverable.
* Distinguishing tangible and intangible deliverables. The flow of tangible deliverables in a business ecosystem result in the exchange of hard currencies, especially revenue, among members of the ecosystem. The flow of intangible deliverables represents the benefits of the relationships that keep things running smoothly and that overall contribute to a viable, and effective system.

Read more here.