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Posted on September 7th, 2011, 23:55

To explain as elementarily as possible, a value network is known as a business analysis or a business viewpoint that delineates the technical as well as the social resources existing between and within businesses. Often you will hear about “nodes” in such a network, which stands for the people. Interactions representing the intangible and tangible deliverables connect the nodes. They sometimes come in the form of knowledge or other financial aspects.

A word that best describes a value network is interdependence. These business process network are responsible for the total worth of services and products. Organizations possess both external as well as inter value networks. Let us understand what they are.

External value networks
The external facing network comprise of the elements that are listed below-
  • Recipients or customers
  • Stakeholders
  • Open innovation networks
  • Intermediaries
  • Suppliers

Internal value networks
There are certain key areas on which the internal value networks concentrate. They include the prime activities and other associations and methods that cross over the internal boundaries and are listed as follows:-

Here the value is generated via the relationship and exchange of various roles and responsibilities. These value networks are said to operate on civil societies, public agencies, institutions, enterprises and different forms of organization. They focus on wealth, innovation, social welfare and an overall environmental wellness.

Yet there have been reasons as to why the traditional methods of operation have made the value network have loopholes. Information technology is altering swiftly the collaboration regulations amongst business partners. It is the capacity to be able to maximize cloud-oriented technology to organize major factors like business methods, relevant inputs, business association and networking, quality services that will ascertain the height of achievement in today world of cloud computing.

In addition to that, organizations these days are most often forced to take charge for numerous products and services, even beyond the selling point. There are instances, wherein they are accountable for the return and the recycling of damaged goods. This is done keeping in mind several environmental factors. Products and services today are known for their individuality, which means each of them needs to be truly unique and different from each other. Precision is what the users demand and seek for in a market that is getting increasingly complex. Delivery too needs to make at a less price. All these factors have resulted in bottlenecks in the value networks via the traditional ways of operation.

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By Josephmax, in: General