Business Model Generation Playbook

Value Network

17 plays

Hand drawn illustration of

Important for this playbook

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.

Bounties illustration

Recipe

Bounties

Offer rewards to an unknown crowd for reaching specified outcomes

Drop Ship illustration

Recipe

Drop Ship

Send directly from wholesaler to customer without maintaining inventory

Integrator illustration

Archetype

Integrator

Take control of all resources and capabilities going into value creation

Layer Player illustration

Archetype

Layer Player

Produce more efficiently by specializing in only one value-adding step

Multi-Sided Market illustration

Recipe

Multi-Sided Market

Bring together two or more distinct and independent groups of customers

No Middle Man illustration

Recipe

No Middle Man

Skip the intermediary and deliver directly to customers

Omnichannel illustration

Element

Omnichannel

Seamlessly merge customer experiences across contact channels

Orchestrator illustration

Archetype

Orchestrator

Direct the value chain

Peer-to-Peer illustration

Recipe

Peer-to-Peer

Mediate interactions between private individuals in a homogeneous group

Platform as a Service illustration

Recipe

Platform as a Service

Enable ubiquitous and on-demand access to a shared pool of resources

Revenue Sharing illustration

Element

Revenue Sharing

Extend value creation by creating symbiotic effects between stakeholders

Self-Service illustration

Recipe

Self-Service

Transfer part of the value creation to the customer

Shop in Shop illustration

Recipe

Shop in Shop

Let a brand owner take space in another company’s retail space

Virtualization illustration

Recipe

Virtualization

Imitate a traditional physical process in a virtual environment

Affiliation illustration

Recipe

Affiliation

Help others sell your products

Brands Consortium illustration

Recipe

Brands Consortium

Pool resources across brands to create projects that benefit all members

Joint Venture illustration

Recipe

Joint Venture

Gather the power of multiple businesses to stand stronger together

Community events
Product Loop

Product Loop provides an opportunity for Product professionals and their peers to exchange ideas and experiences about Product Design, Development and Management, Business Modelling, Metrics, User Experience and all the other things that get us excited.

Join our community

Made with in Copenhagen, Denmark

Want to learn more about about good product development, then browse our product playbooks.