Value Networks

 and the true nature of collaboration


   

Chapter 2: Mapping the Value Network

Value Network Mapping Basics

 

 

Value Network Mapping Basics 


The core elements of a value network map

The basic value network diagram is created from just three simple elements: Roles - and Transactions and Deliverables.

The map itself shows a specific activity with defined scope and boundaries. The example below is very simple, but the same elements can be used to map any activity, no matter how complex.

Using just these three elements, the mapping method is easy to learn and easy to apply to activities and processes, from simple to complex.

Three elements of the map

1. Nodes (often shown as ovals) represent real people and the contributing role they
play in that activity.

2. A directional arrow shows a single transaction -  something moving from one role
to another.

3. A transaction with an intangible deliverable is shown here with a dashed line, and
a transaction with a tangible deliverable is shown with a solid line.

Four steps to the value network map

1. Define the scope and boundaries, context, and purpose. 

2. Determine the roles and participants, and who needs to be involved in the mapping.

3. Identify the transactions and deliverables, defining both tangibles and intangibles.

4. Validate it is complete by sequencing the transactions.

Example of a value network map

At a healthcare organization, patients would sometimes wait up to 3.5 months to get a confirmed appointment for a particular medical procedure. Using a LEAN process engineering approach the group was able to reduce processing time from 8 hours to 5. But they were only able to reduce wait time by 2 weeks.

Value Network Analysis (VNA), in one workshop day, identified the problem by understanding the roles and interactions. A solution was implemented - reducing wait time from 3.5 months to 4 weeks.

The map below shows their process before the VNA project. This case study will be developed in Roles and Participants and Transactions and deliverables and Sequencing.
value network map of procedure scheduling in a healthcare organization

The complete case study, Procedure Scheduling in Healthcare, is in the Case Studies chapter.

Note: Roles in a value network are defined by the value they contribute. In classic network analysis, role typically refers to the structural role in the network. For a more detailed explanation of the differences see SNA/VNA/ONA in the Deep Dive chapter.