Value Network Mapping
Value network mapping describes the process by which companies chart their value network. They do this to gain deeper insight into the value chain and look for ways to improve their existing systems. Creating a value network map is a crucial component of value chain management, as it gives businesses a visual representation of how different processes work together in the value chain. There are different network analysis techniques that can be used to assess value networks, including the critical path method and program evaluation and review technique (PERT).
However, before getting started with any kind of analysis, it’s important to understand value network vs. value chain. The term “value network” refers to the partners and collaborators that work together to support the value chain, while the value chain itself is the system by which goods are sourced, procured, and delivered. Understanding the difference between the two is key to getting started with value network mapping and learning more about how different players within the network influence value chain outcomes.
MetaCX's Business Value Network is among the first of its kind, facilitating better collaboration between companies and helping them to deliver on expected value. With MetaCX, you can build better business partnerships and dive deeper into your value chain to uncover meaningful insights.
Value Network Analysis in Business
Network analysis in business is essential for maintaining a healthy, productive value chain. Even if things appear to be going well on the surface, it’s important to examine the underlying workings of your network. One example of network analysis in business would be a company assessing other organizations in the network to determine how much of a certain item they’re producing. This can help you identify any bottlenecks in the network.
Network analysis in project management is another important concept to be aware of, but what is network analysis in project management? This type of network analysis focuses on tasks at the project level. Project managers assess the value network to see who might be a good fit for the project and what they can bring to the table. Value network marketing is a sub-component of value networking in business that centers around marketing. This type of analysis examines various aspects of the marketing process to assess marketer performance.
Organizational network analysis (ONA) is a tool for measuring patterns and connections across organizations. It can be used in business to develop a value network model that delivers desired outcomes for your business.
Organization network analysis data sources leverage tools such as Microsoft 365, Jira, and GitHub to produce quantitative insights that can offer a deeper look into your value network. Organizational network analysis Microsoft can be used for network visualizations, gauging innovation, and assessing employee engagement, all of which can be useful for understanding your value network. There are many different tools and organization network analysis data sources that businesses can use to enhance the process. Therefore, it’s important to consider the needs of your organization and determine which tools or systems are most compatible with your ultimate goals and objectives.
The Importance of Network Analysis
The importance of network analysis cannot be overstated. There are several advantages of network analysis, which is why so many businesses are moving toward this practice. Whether you’re considering the importance of network analysis in engineering, the importance of network analysis in operations research, or anything in between, it’s good to remember the ultimate purpose of this type of analysis: to assess the overall value and performance of your network. Network analysis can take many forms, depending on the industry, but it all boils down to gaining a better understanding of your value network.
Understanding the importance of network analysis in project management is key to planning a successful project. With the right network analysis tools, project managers can assess each organization to determine what they can bring to the table in terms of resources and expertise. Network analysis can help project managers utilize resources effectively, shifting things around when necessary to achieve desired results. Likewise, if you’re working with a geographical information system (GIS), it can be helpful to perform network analysis to chart the quickest, most effective route from point A to point B, analyzing various information about different locations. This demonstrates the importance of network analysis in GIS.
Learning how to apply network analysis principles can be challenging, especially if you’re performing this type of analysis for the first time. Browsing an “application of network analysis” PDF can give you a better idea of what to expect, as well as how to implement industry-specific best practices. Performing a network analysis is a great way to dig deeper into your value network and see what’s serving your company and what isn’t. You can then make adjustments as needed, shifting players around in the network and even cutting ties with those failing to deliver on promised value.
Value Chain Activities
In his 1985 book Competitive Advantage, economist Michael Porter introduced the term “value chain.” He also outlined several different value chain activities, including the primary activities of value networks and secondary activities. So what are the 5 primary activities of a value chain, and what are the supporting activities of the value chain model? The primary activities of the value chain include inbound and outbound logistics, operations, and marketing, while the secondary activities of the value chain center around firm infrastructure, human resource management, technology development, and procurement.
Porter’s value chain primary activities are directly involved with the creation and sale of a product or service. Support activities enable primary functions. There are also sub-activities for both primary and support functions. For example, direct activities exist under the primary umbrella and create value independently. Indirect activities, on the other hand, support direct activities in the creation of value. Sub-activities within the support space are also carried out to support value creation. In this way, the value chain can be thought of as a complex web of interlinking activities that work in conjunction to deliver value, whether directly or indirectly.
Value Network Analysis Example
The value network analysis process can look different for every business and industry. In one value network analysis example a company might determine that, as a result of another organization withdrawing from the network, they’ve lost up to half of the production material. To make up for this loss in the network, they would need to figure out exactly what they need to recuperate, how much it’s going to cost, and what the impact will be on the overall value network.
An example of network analysis in business may involve a shift in the business model. If a company wants to change up its payment system, for example, it would analyze to determine how these changes would impact others in the network. Looking at a value network in a business model example can help illustrate this.
Another value chain example is seen with Starbucks. Starbucks’ business model proves the effectiveness of Porter’s value chain, procuring high-quality coffee beans (inbound logistics), operating in over 80 markets (operations), and building customer loyalty (service), among other things. These primary and support activities work in conjunction to deliver value. Starbucks’ value network supports the procurement and delivery of products to customers, and by digging in and analyzing its network, Starbucks can achieve even greater business success. This value network example demonstrates how different companies work together within a network to deliver value to customers.
Value Network Template
Using a value network template can help ease the starting friction of mapping your value chain. This is especially true if you’re getting started with value chain analysis for the first time. If you’re a Word user, you might use a blank value chain template Word document. Likewise, if you are looking for a free template, you can try searching for a free value chain template Word document. Free templates are typically less detailed than paid versions but can serve as a good starting point for companies trying to chart their process. Whatever value chain template Word download you choose, it’s important to ensure that it’s compatible with your business aims and can help outline your goals for your value network.
PowerPoint users can benefit from a value chain analysis template PPT free download. A network analysis PPT can be incredibly useful in teaching your team about the analysis process, as it gives them a visual representation of each component of the value chain—a network analysis PDF can also serve this purpose. You might even use a value chain template PPT instructional guide for help getting started creating a PowerPoint presentation that’s specifically centered around the value chain. If you want to make customized edits, you can use a value chain editable template. The bottom line is that there are many different types of value network templates, so whether you’re content with a value chain template free download or you require something more extensive, you should be able to find something that meets your needs.
While a good template can help you get started mapping your value network, seeing the process through to the end is easier said than done. MetaCX works with companies, connecting them to others in the Business Value Network to help them achieve greater alignment. With MetaCX you can gain deeper insight into your value network, seeing how each component works with the others to assist in the delivery of value.