DEFINITION of 'Value Network'

A set of connections between organizations and/or individuals interacting with each other to benefit the entire group. A value network allows members to buy and sell products as well as share information. These networks can be visualized with a simple mapping tool showing nodes (members) and connectors (relationships).

BREAKING DOWN 'Value Network'

In business and commerce, value networks are an example of an economic ecosystem. Each member relies on the others to foster growth and increase value. Value network members can consist of external members such as customers or internal members such as research and development teams. Weakness in one node can affect the entire network. For example if a development team is weak, the production team has a harder time creating the product which, in turn, can leave a buyer waiting for their shipment.

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