Value Network

A value network is a system of organizations, individuals, and resources that work together to create and deliver value. There are many different value network models that businesses can use, each with its own advantages and disadvantages. In this article, we will take a look at some of the common value network models and how they are related.

Collaboration and Partnership

The “Joint Venture,” “Brands Consortium,” and “Affiliation” models all involve collaboration and partnership between different organizations. In a joint venture, two or more organizations come together to pursue a specific business objective, while a brands consortium involves a group of companies coming together to achieve a common goal. Affiliation involves an agreement between two organizations to work together, usually with one organization promoting the other’s products or services. These models allow businesses to share resources, skills and risks to achieve mutual benefits.

Intermediaries and Middlemen

The “Integrator,” “Omnichannel,” “Layer Player,” “No Middle Man,” “Orchestrator,” “Platform as a Service,” and “Virtualization” models all involve intermediaries and middlemen in the value network. An Integrator coordinates and streamlines the different parts of the value chain, while Omnichannel allows customers to shop through multiple channels. Layer Player provides a specific service or product that integrates into the value chain, No Middle Man allows direct access to customers or suppliers, an orchestrator manages and optimizes the value chain and Platform as a Service and Virtualization provide access to shared resources and infrastructure. These models allow businesses to leverage the expertise and resources of intermediaries to create and deliver value.