DEFINITION of 'Value Network Analysis'
The analysis of the members and the interactions of these members within a value network. Value network analysis is usually done through visualizing the relationships using a chart or web. The participants are evaluated both individually and on the benefit they bring to the network. Value network analysis looks at the business as a whole, including financial and non-financial aspects of operations.
BREAKING DOWN 'Value Network Analysis'
Value networks are made up of members and their interactions while producing a product or providing a service. These connections are extremely important in identifying strong companies as well as finding a company's potential risks. For example, if a network member has a large influence, the loss of that member could devastate the entire group. This is an example of intrinsic value analysis because there is value, but it is hard to place a price on.