Value network: Difference between revisions

{{Multiple issues|{{POV|date=November 2024}}{{Underlinked|date=November 2024}}}}

There is no agreed upon definition of value network. A general definition that subsumes the other definitions is that a '''value network''' is a network of [[Role|roles]] linked by interactions in which '''''[[Economic entity|economic entities]]''''' engage in both [[Tangible asset|tangible]] and [[Intangible asset|intangible]] exchanges to achieve economic or social good. This definition is similairsimilar to one given by [[Verna Allee]].<ref name=":0" />

[[Richard Normann|Normann]] and Ramirez argued in 1993 that strategy is not a fixed set of activities along a value chain.<ref>[http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?ml_action=get-article&ml_issueid=3934&articleID=93408&pageNumber=1 Online HBS Version Normann, R. and Ramírez, R. ''From Value Chain to Value Constellation: Designing Interactive Strategy''], [[Harvard Business Review]], 71, July/August 1993, pp. 65–77</ref> Instead the focus should be on the value creating system. All [[Stakeholder (corporate)|stakeholders]] are obligated to produce value. Successful companies conceive of strategy as systematic social [[innovation]].

All exchanges of [[goods]], services or [[revenue]], including all transactions involving [[Contract|contracts]], [[Invoice|invoices]], return [[receipt|receipts]] of orders, requests for proposals, confirmations and payments are considered to be tangible value. Products or services that generate revenue or are expected as part of a service are also included in the tangible value flow of goods, services, and [[revenue]] (2). In [[Government agency|government agencies]] , these would be mandated activities. In civil society organizations, these would be formal commitments to provide [[resources]] or services.

Resource deployment, delivery, market innovation, [[knowledge sharing]], and [[Time to market|time-to-market]] advantage are dependent on the quality, coherence, and vitality of the relevant value networks, business webs and [[business ecosystems]].<ref>Tapscott, D., Ticol, D., Lowy, A. Digital Capital, Harnessing the Power of Business Webs. Harvard Business School Press. May 2000</ref>

Because the value network approach addresses both [[Financial asset|financial]] and [[Non-financial asset|non-financial]] assets and exchanges, it expands [[Metric system|metrics]] and indexes beyond the lagging indicators of financial return and operational performance – to also include leading indicators for strategic capability and system optimization.