Embed Size (px)
Citation preview
30.01.2012
1
Value Network Analysis
Verna Allee [email protected]
1
www.valuenetworksandcollaboration.com
What we will cover
• Importance of network models
• Definition of value networks
• Role-based visual notation
– Phase changes in value networks
– Collaborations and organizations
– Value networks as workflow
• Analyzing value creation and impact
– Value conversion
– Asset and resource management
• Indicators and metrics
January 30, 2012 2 © Verna Allee 2011
30.01.2012
2
Network Literacy Is Increasing
January 30, 2012 3 © Verna Allee 2011
Social graphs and network
analytics are becoming core
components of collaboration
applications.
Discovering Social Networks
January 30, 2012 4 © Verna Allee 2011
Who is Dating Whom?
Bearman, Moody, and Stovel, 2004
Image by Mark Newman
30.01.2012
3
Formal Organization
January 30, 2012 5 © Verna Allee 2011
Formal Organization
Acknowledgement: Valdis Krebs
Informal Organization – the Network
January 30, 2012 6 © Verna Allee 2011
Social Network Analysis
Acknowledgement: Valdis Krebs
30.01.2012
4
Used for Industry Analysis
January 30, 2012 7 © Verna Allee 2011
From July 2006 Future of Media Report
Future Exploration Network, Sydney
Research by Laurie Lock-Lee, CSC
About Value Networks
Value Networks are sets of roles, interactions, and
relationships that generate economic or social value.
Any purposeful organization or activity can be
understood as a value network.
Value Network Analysis:
• Defines roles and how they interact as a network
pattern
• Makes intangibles visible,
negotiable, and manageable.
• Can model complex value flows
and human collaborations
January 30, 2012 8 © Verna Allee 2011
30.01.2012
5
How do humans organize their work?
January 30, 2012 9 © Verna Allee 2011
What we will cover
• Importance of network models
• Definition of value networks
• Role-based visual notation
– Phase changes in value networks
– Collaborations and sub collaborations
– Value networks as workflow
• Analyzing value creation and impact
– Value conversion
– Asset and resource management
• Indicators and metrics
January 30, 2012 10 © Verna Allee 2011
30.01.2012
6
Value Network Mapping
Nodes represent participants (usually real people)
and the Roles that they play.
Solid lines show tangible, formal or contractual,
deliverables being transacted.
Dashed lines show intangible or informal value being
provided.
January 30, 2012 11 © Verna Allee 2011
ROLE
ROLE
Tangible (formal) Deliverable
Intangible (informal) Deliverable
Technology Repair
January 30, 2012 12 © Verna Allee 2011
Roles Intangible
(Informal)
Interactions
Tangible
(Formal)
Deliverables
30.01.2012
7
Service Level Agreements (Pre service)
January 30, 2012 13 © Verna Allee 2011
Product
Expert
Field
Technician
Service Level
Agreement:1
Performance
Expections:2
Performance
Expections:3
Service Contract:4
Performance Expections:5
Request
Status:7
Customer
Update:8
Request
Customer Info:9
Advice:10
Advisory:16
History:42
Service
Coordinator
Technical
Operations
Oversight
Customer
Technology
Mgr
Sr.Technical
Advisor
Field
Manager
Customer
Acct Mgr
Text
Escalation – big problems
January 30, 2012 14 © Verna Allee 2011
Request
Incident Info:41
Product
Expert
Field
Technician
Performance
Expections:2
Service Delivery:18
Request
Status:19
Escalation Alert:20
Request
Status:21
Status
Concern:22
Request
Escalation :23
Escalation
Alert:24
Escalation Action:25
Status of
Escalation:26
Request Escalation:27
Escalation Notification:28
Assistance:29
Assistance:30
Notice of Escalation:31
Request
Help:32
Escalation Status
Request :33
Request Information:34
Report:35
Feedback:36
Status of Escalation:37
Completion Report:38
Completion
Confirmation:39
Request
Incident
Report:40 History:42
Incident
Report:43
Weekly Report:44
Service
Coordinator
Technical
Operations
Oversight
Customer
Technology
Mgr
Sr.Technical
Advisor
Field
Manager
Customer
Acct Mgr
30.01.2012
8
Happy Path – no problems
January 30, 2012 15 © Verna Allee 2011
Product
Expert
Field
Technician
Service Level
Agreement:1
Performance
Expections:2
Performance
Expections:3
Service Contract:4
Performance Expections:5
Trouble Report:6
Confirmation :11
Dispatch
Ticket:12
Suggestions:13
Copy Dispatch
Ticket:14
Service Delivery:18
Request
Status:19
Request
Status:21
Assistance:29
Feedback:36
Completion Report:38
Completion
Confirmation:39
Weekly Report:44
Service
Coordinator
Technical
Operations
Oversight
Customer
Technology
Mgr
Sr.Technical
Advisor
Field
Manager
Customer
Acct Mgr
Request
Customer Info:9
Advice:10
Merging networks
January 30, 2012 16 © Verna Allee 2011
Payment
Processor
Policy
Acceptance
Payment
confirmation
Sales Report
Payment
Policy Proposal
Customer Data
Sales person
Underwritier
Sales
Manager
Sales Targets
Contract
Payment
Inquiry
Customer
Payment
Processor
Payment
confirmation
Repair Order
Payment
Repair ConfirmationRepair
Repair
Service
CustomerClaims
Processor
Invoice
Request
confirmation
Claim for Repair
Payment approval
Bid
Approvql
Bid
Speedy and fair resolution
30.01.2012
9
Organization Role Hierarchy
January 30, 2012 17 © Verna Allee 2011
A
B C
D
C1 B3 B2 B1
A4 A3 A2
D3 D2 D1
C3 C2
A1
Role
Collaboration
Even in Organizations
January 30, 2012 18 © Verna Allee 2011
W. H. Smith,
Graphic Statistics in Management
McGraw-Hill Book Company,
New York, ed. First, 1924
30.01.2012
10
Another View of Organization Hierarchy
January 30, 2012 19 © Verna Allee 2011
Accountability(deliverable)
Position RolesOrg Collaborations
What we will cover
• Importance of network models
• Definition of value networks
• Role-based visual notation
– Phase changes in value networks
– Collaborations and sub collaborations
– Value networks as workflow
• Analyzing value creation and impact
– Value conversion
– Asset and resource management
• Indicators and metrics
January 30, 2012 20 © Verna Allee 2011
30.01.2012
11
Converting to process or workflow
1. Map the Value Network
2. Sequence the deliverables
3. Define swim lane roles
4. Overlay value network map on swim lane
5. Detail as workflow
January 30, 2012 21 © Verna Allee 2011
Detailed Value Network Workflow
January 30, 2012 22 © ValueNet Works 2011
Consistency with
multi-year training
and exercise plan: 2
Exercise
designer
Scope of
Exercise: 1
Consideration of
scope and
complexity: 3
Target timeframes
and milestones: 4
Issues and
constraints: 5
Issues and
constraints: 6
Exercise
plan: 7
Previous
experience: 8
Meeting
requirements: 9
Meeting
design: 10
SMART objectives:11
Exercise context:12
Design suggestions:13
Design suggestions:14
Scenario recommendations:15
Advocacy:16
Exercise
Plan: 17Scenario
Storyline: 18
Venue requirements: 19
Exercise document-
ation design: 20
Feedback on
design: 21
Exercise
policies: 22
Exercise
appropriateness: 23
Exercise documentation
materials: 24
Exercise policies: 25
Approval:26
Feedback: 27
Venue
requirements: 28
Logistics
plan: 29
Invitation:30
Invitation:31
Invitation:32
Registration:33
Registration:34
Registration:35
Exercise
planner
Meeting
planner
Players
ActorsSimulators
Scope
determiner
Timeline
planner
Exercise
documentor
Exercise
reviewer
Logistics
coordinator
30.01.2012
12
Suggested revised swim lane roles:
January 30, 2012 23 © ValueNet Works 2011
Value Network Mapped to Swim Lane
January 30, 2012 24 © ValueNet Works 2011
30.01.2012
13
Revised Process with Roles and Deliverables
January 30, 2012 25 © ValueNet Works 2011
Revised Process Continued
January 30, 2012 26 © ValueNet Works 2011
30.01.2012
14
Revised Process Completed
January 30, 2012 27 © ValueNet Works 2011
Commercial Airplane Operations Center
January 30, 2012 28 © Verna Allee 2011
Case Leaders
Controller
Customer
Materials
Mgmt
Research
Support
Service
Engineer
Details
Proposal
Detailed Inquiry
Viable Options
Case Scenario
Feasibility Analysis
Situation Analysis
Urgency Confirmation
Urgency Valid. Request
Agreement
Case Scenario
Feasibility Analysis
Agreement
Agreement
Agreement
Additional Info.
Additional Info.
Urgency Level
Urgency Level
Urgency Level
Capabilities
Capabilities Assess.
Capabilities Assess.
Additional Info. Request
Additional Info. Request
Analysis
Analysis
Capabilities Inquiry
Info. Request
Info. Request
(Low Priority ofEscalation Risk)
S
Fighting Solutions
O
O
S
Understanding thecustomer's real
problem
coordination
designing andbuilding solutions
together
solution optionawareness
S
choosing integratedresponse
S
S
customerpartnering
willingness topartner
Customer
Satisfaction
value to thecustomer
planned
integrated
solution
S
S
S
S
S
S
S
open and honestcommunication
S
PublicNetwork
Path
Building a trusted andknowledgeable team
availability of a trainingground (flight ramp) - qualify
and deliver (feeder pool)Slearning system
level knowledge
cognizantengineer lead
S
S
S
S
pressure toreprioritize
number of ways tocontact Boeing
the numberof
redirections
S
S
lost time inredirection
scheduledelay
S
Duplication ofwork
over requesting(creation of redundant
work)
customer frustrationabout a time delay
S
S
S
S
Schedule
Pressure
S
S
Frustration
S
ReinforcedRedirection
Delay
ReinforcedCustomerDemand
S
S
building newbusiness
opportunities
S
one phone
field rep
internaltracking
virtual onephone call
up front screening(Long Beach)
O
trust
S
choosing localresponse
RAAconstraint
S
S
needing specialauthority
sending requestto queue
waive offs
S
S
customsdelay
logistics/authoritydelays
accessdelays
S
S
S
request more information(disguised wave-off)
(purchase order clarification)("Not Mine" Shuffle)
S
O
attrition rate
depth in requiredknowledge area
number, size, andcomplexity of issues
to work
S
IndividualFrustration
contacting your expert(local understanding)
availability ofexperiencedemployees
DistributedKnowledge
Network
O
S
OrejectedsolutionsS
effect of lateunderstanding
O
interimsolution
finalresolution
data forpermanent/fleet
solutions
S
S
Ssales setspriority
Lou setspriority
customerescalation
customer impactsets priority
(AOG, AG flag)
FAA setspriority
escalation
S
customers' reactionto no feedback
(black hole)
salescampaign
Tier 1, 2,etc
S
O
communication
vendorpartnering
S
S
internalcommunication
S
SS
DistributedNetwork
Path
S
knowledgesharing
Temporary
Relief
Valve
Get'emFlying
Keep'emFlying
local
solutions
S
S
PrivateNetwork
OS
S
<CustomerSatisfaction>
O
<up front screening(Long Beach)>
S
<DistributedKnowledgeNetwork>
S
workingovertime
workaccomplishment
rate
Quality
work doneon time
O
O
S
effect of experience onwork accomplishment
rate
S
S
S
customerexpectation
S
negotiatedservice level
O
expectationcreep
O
SS
effect of experienceon quality
<workaccomplishment
rate>
O
rework
O
How do wemitigatethis???
LegendRed Hurts
Green Helps
Blue is typical
S as in "Same" means the thing atthe arrow point changes in the
same direction as the thing at thearrow start
O as in "Opposite" means the thing atthe arrow point changes in the
opposite direction as the thing at thearrow start
forcedcoordination
S
If Schedule Pressureis Low Enough,Coordination is
Easier to Choose
CustomerCommunication
Gold Either Helps or Hurts
Black is Unique to One
Organization
O
integrated data,trending, etc
CreepOut
Structural View
“Hot spots”
Courtesy Bob Wiebe,
Dan Compton, Glenda Turner
From System Dynamics to
a Value Network View
30.01.2012
15
What we will cover
• Importance of network models
• Definition of value networks
• Role-based visual notation
• Phase changes in value networks
• Collaborations and sub collaborations
• Value networks as workflow
• Analyzing value creation and impact
– Value conversion
– Asset and resource management
• Indicators and metrics
January 30, 2012 29 © Verna Allee 2011
How People Create Value
January 30, 2012 30 © Verna Allee 2011
By assuming or creating roles …
to convert tangible and intangible assets into deliverables …
that can be conveyed to other roles through the execution of a transaction.
In turn, value is realized by companies when they convert inputs into gains.
Value Conversion
Utilize Assets
Tangible and Intangible Assets
Roles
Realize Value
Financial Assets
Human Competence
Brand and Relationships
Internal Structure
Deliverables
Transactions
Allee, Journal of Intellectual Capital, January 2008
30.01.2012
16
How Networks Create Value
January 30, 2012 31 © Verna Allee 2011
Allee, Journal of Intellectual Capital, January 2008
Value Creating Network
The emergent purpose of the value network is revealed through the pattern
of roles and value exchanges that support an economic or social output.
Sustainability depends on a consistent high level of both transactional and
network perceived value.
Scalable
January 30, 2012 32 © Verna Allee 2011
Global Action Networks
Regional and
Local Networks
Business Networks
Task Networks
Capabilities
Communities
Organizations
Workflow
30.01.2012
17
Realizing Value for Ourselves
January 30, 2012 33 © Verna Allee 2011
Impact Analysis
Transactions Impact Analysis
Deliverable
Nature of
Deliverable
Intangible
Tangible
Comes
From
(Role)
Goes To
(Role)
What
activities
does the
input
generate?
Impact on financial
resources
Impact on intangible assets
Human Competence (HC)
Internal Structure (IS)
Business Relationships (BR)
Overall
cost/risk
Overall
benefit
Resources
Revenue HC S BR
Impact Analysis
January 30, 2012 34 © Verna Allee 2011
Any asset management, capabilities or competencies scorecard can be
used for this analysis!
Possible indicators include Resilience, Asset Management – Asset
Impact, Reciprocity, Risk, Structure and Value, Agility, Stability
30.01.2012
18
Product
Expert
Field
Technician
Performance
Expections:3
Confirmation :11
Dispatch
Ticket:12
Suggestions:13
Copy Dispatch
Ticket:14
Request
Status:19
Request
Status:21
Completion
Confirmation:39
Weekly Report:44
Service
Coordinator
Technical
Operations
Oversight
Customer
Technology
Mgr
Sr.Technical
Advisor
Request
Customer Info:9
Creating Value for Others
January 30, 2012 35 © Verna Allee 2011
Value Creation Analysis
Value Creation Analysis
January 30, 2012 36 © Verna Allee 2011 January 30, 2012 36
©
1997-
2010
Value
Netw
orks,
LLC
All
rights
reser
ved.
Transactions Value Creation Internal Cost/Benefit
Deliverable
Nature of
Deliverable
Intangible
Tangible
Comes
From
(Role)
Goes To
(Role)
What
activities
does the
input
generate?
Costs in terms of
financial assets and
resources
Costs for intangible assets
Human Competence (HC)
Internal Structure (IS)
Business Relationships (BR)
Overall
cost/risk
Overall
benefit for
our
company
and
customers
Resources
Revenue HC S BR
How well is the Role leveraging financial and non-financial assets to
create this value output?
Indicators used for this determination can be as simple as a three-point
high/medium/low subjective value. Or they can be much more involved
and extend to hard indicators such as financial costs, person-hours required,
equipment costs or system demands, efficiency factors around speed and
quality, and external infrastructure required or partnerships costs.
30.01.2012
19
Exptended Value Creation Analysis
January 30, 2012 37 © Verna Allee 2011
Transactions Value Creation External Cost/Benefit
Deliverable
Nature of
Deliverable
Intangible
Tangible
Comes
From
(Role)
Goes
To
(Role)
External Tangible or Intangible
Costs/Risks
External Tangible or Intangible
Benefits
Overall
external
cost/risk
Overall
External
Benefits
Industry Society Environment Industry Society Environment
Industry, Social Citizenship, and the Environment
•Are the value outputs viewed as positive contributions or innovations
for your industry?
•What is the effect of the value outputs on society – do they
contribute to a more hopeful future and an increase in social good?
•What is the environmental footprint of a particular value output?
Indicators and Metrics
January 30, 2012 38 © Verna Allee 2011
Business Performance
Network Vitality
Value Optimization
Brand & Relationships
•Value Creation
•Value Realization
•Intangible Asset Mgmt
•Financial Impact
•Perceived Value
•Reciprocity
•Value Contributors
•Innovation Pathways
•Resilience
•Structural Dependency
•Benchmarks
•Agility and Stability
•Risk
•Flow Path Optimization
•Channel Management
•Speed
Value Network Intelligence
30.01.2012
20
A Network View of the Work Itself
January 30, 2012 39 © Verna Allee 2011
CITAP Inputer - RO_IDS
SOW Inputer - RO BCA SOW final validator
Integrator of test requirements
Authorized management SOW approver(s)
Technical Designer-finalizer PO coordinator
IDS requirements researcher-author - SOW Initiator
Communication convener
Functional resource estimator RO SOW Final Approver
Resource Owner
FOTV-BCA PO info advisor
ITAR_EAR Analyst-Determiner
RO RFP Creator
BCA RFP Reviewer
PIW Creator
Non-FTO_V estimate collector-checker-coordinator
SOW technical evaluator-reviewer
Non-FTOV estimate collector-checker-coordinator
Functional SME
Authorized management PIW approver
PoP Adjuster
Coordinator
BCA SOW estimate and PoP validator Test estimate reasonableness assessor
Test estimate collector-checker-documenter
Functional estimate approver
Test estimate requester
BCA estimate integrator
BCA Pricer BCA Price approver
Expiration date assigner
BCA Proposal Creator
BCA cost policy reviewer
CITAP Project Manager
BCA work performer
BCA proposal implementer
Chargeline assigner
Job Number Assigner
IDS Proposal evaluator-acceptor authorized management approver
IDS financial analyst
IDS Technical Analyst
IDS Cost Analyst
0
0 0
0
0 0
0 0 0
0
0
0
0
0
0
0 0
0
0
0 0
0
0
0
0
0
0
0
0
0 0
0 0 0 0 0
0
0 0
0
0
0 0
0
0 0 0 0 0
0
0 0
0
0 0 0
0
0 0 0 0
0
0
0
0
0
0
0
0 0 0
0
0 0
0 0 0
0
0
0 0
0
0
0 0
0
0 0 0 0
0
0
0 0
0 0 0
0
0
0
0
0
0 0
0 0
0
0
0
0 0
0
0
0 0
0
0
0 0
0
0
0 0
0
0
0
0
0
0 0
Complex Procurement Activity
Showing both tangible and intangible value creation!
The Hope
January 30, 2012 40 © Verna Allee 2011
The value network perspective
helps generate the true wealth
that makes life worth living.
30.01.2012
21
Our Company
Applications for value network
visualization, analysis, optimization
Unique value network analytics
and predictive intelligence
Expert guidance, training, services
January 30, 2012 41 © Verna Allee 2011
Value Network
Applications (SaaS)
Project Support
Training Expert
Services
Blog at www.valuenetworks.com
LinkedIn ValueNetworks.com Value Networks
Twitter @valuenetworks and @vernaallee
www.vernaallee.com
www.valuenetworksandcollaboration.com
