Presentation on Value Network

Name: Nahid Farjana

ID: 513211032
Batch: 56
Credit: 38
 What Is a 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).
 KEY TAKEAWAYS
• Value networks are connections between individuals or individuals and
corporations in which their interactions benefit the group.
• Members in a value network can buy and sell from one another as well as
exchange important and relevant information.
• Value networks can be depicted in mapping tools through nodes (members)
and connectors (relationships).
• The primary advantage of a value network includes the way a business or
individual applies the resources, influence, and insight of their network
connections.
• Value networks help their members to grow value and consist of internal (e.g.
research and development) and external (e.g. customers) resources.
• The main types of value networks include the Clayton Christensen network,
Fjeldstad and Stabells network, Normann and Ramirez constellations, and
Verna Allee's networks.
 Types of Value Networks
The main types of value networks include the
 Clayton Christensen network
 Fjeldstad and Stabells network
 Normann and Ramirez constellations
 Verna Allee's networks
 Clayton Christensen Network
The Clayton Christensen network describes relationships that already
exist externally and that any new entrants into the network will be
molded to fit the current network or business model's shape. New
entrants will have a difficult time to break through and/or provide new
ideas or implement changes because the new entrants will most likely
end up accommodating and falling in line with the current network.
 Fjeldstad and Stabells Network
Fjeldstad and Stabells believe that the most important parts of a
network are (1) customers, (2) services, (3) service providers and, (4)
contracts that allow access to services. This theory states that
customers are essential to the network and their involvement provides
the added value. The most common example is social media, e.g.
Facebook, YouTube, Instagram, and TikTok, where customers sign up,
agree to terms in the contract, and add the value to the network.
 Normann and Ramirez Constellations
The Normann and Ramirez constellations value
network believes networks to be fluid setups that
allow for constant change and improvement. It is up to
members in the network to analyze the current
relationships and look for openings and opportunities
as a way to add value.
 Verna Allee's Networks
Verna Allee's networks believe that networks create
both tangible and intangible values and that value
network analysis should be incorporated into all facets
of a business to extract the most value in every stage.
 Benefits of a Value Network
• The benefit that a value network provides comes from the way a business
or individual applies the resources, influence, and insight of others to
whom they are connected. A startup, for example, may look to its external
connections, such as its investors and mentors, to provide experienced
guidance on how to approach the development and growth of the business.
• While many founders have a deep understanding of the product or service
they develop, bringing that service to market, finding customers, and
scaling up the business may be unfamiliar to them.
• To make up for this shortcoming, they may seek the advice of trusted
stakeholders with experience on such matters, which is considered an
intangible benefit of their relationship. They might also look to groups
that specialize in assisting startups, such as incubators and accelerators, to
increase their exposure to potential mentors and investors.
Thank you