Value Network
A value network is a set of connections between organizations and/or individuals interacting with each other to benefit the entire group. A value network allows members to buy and sell products as well as share information. These networks can be visualized with a simple mapping tool showing nodes (members) and connectors (relationships).
Definition: A value network is a set of connections between interacting organizations and/or individuals that benefit the entire group. Value networks allow members to buy and sell products and share information. Simple mapping tools can be used to visualize these networks by showing nodes (members) and connectors (relationships).
Origin: The concept of value networks dates back to the 1990s when management scholars and economists began to focus on inter-organizational cooperation and information sharing. With the development of the internet and information technology, the concept of value networks has been further expanded and applied.
Categories and Characteristics: Value networks can be divided into two main categories: physical value networks and virtual value networks. Physical value networks primarily involve the production and distribution of tangible products, such as supply chain networks. Virtual value networks primarily involve the exchange of information and services, such as social media platforms. Physical value networks require logistics and warehousing support, while virtual value networks rely on information technology and communication tools.
Case Studies: 1. Supply Chain Network: A typical case of a physical value network is the supply chain network in the automotive industry. Car manufacturers, parts suppliers, logistics companies, and dealers form a complex network that cooperates and shares information to improve production efficiency and reduce costs. 2. Social Media Platform: A typical case of a virtual value network is Facebook. Users, advertisers, and content creators interact on the platform, sharing information and resources, forming a large value network.
Common Questions: 1. How to identify and map nodes and connectors in a value network? Specialized mapping tools like Visio or Gephi can be used to visualize value networks. 2. How is a value network different from a traditional supply chain? Value networks emphasize the sharing of information and resources, not just the flow of products.
