DEFINITION of 'Value Network Analysis'

Value network analysis is the assessment of an organization's members and the interactions of these members within a value network. Value network analysis is usually done by visualizing 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 put a price tag on.

Applying Value Network Analysis

The methodology applied through value network analysis can help an organization optimize its external and internal value networks, making the most of its outside relations along with the synergies of the teams within the operation. This includes the exchange of knowledge, information, and expertise across the relationships woven into the organization. The goal of the analysis is to improve the communication and collaboration with all involved parties in order to operate at peak and improve overall productivity.

The application of the value network analysis can help organizations for such needs as internal restructuring, improvement of workflow across interrelated departments, as well as for project planning. The analysis can also assist an organization undergoing a merger or acquisition, as it looks to better connect with and make the most use of the new divisions and operations that must be integrated.

If a company is undergoing a process redesign wherein an extensive overhaul and new framework must be established, a value network analysis could be applied to provide a clearer picture for changes that must be made. If the organization needs to formulate a new business model, the value network analysis approach can be applied to identify resources that may be drawn upon to provide new insights into developing such a model as well as toward how the new model can operate going forward. The research and development aspects of an organization can also benefit from a value network analysis by identifying what information and expertise are available to collaborate in the creation of new services or products.

RELATED TERMS
  1. Networking

    Networking is a process that fosters the exchange of information ...
  2. Social Networking

    Social networking is the use of internet-based social media programs ...
  3. Fundamental Analysis

    Fundamental analysis is the method of analyzing a security to ...
  4. Value

    Value is the monetary, material or assessed worth of an asset, ...
  5. Relative Value

    Relative value is a method of determining an asset or company's ...
  6. Gap Analysis

    Gap analysis refers to the process through which a company compares ...
Related Articles
  1. Investing

    Druckenmiller-backed "LinkedIn for the 1%" Opens to the Public

    The network, called Relationship Science, aims to provide links between high profile individuals in the worlds of business, finance, and law.
  2. Small Business

    Small Business Owners: Take Advantage of Networking

    What do we really get out of going to networking events? A lot, actually—if you follow up.
  3. Financial Advisor

    Networking For Financial Professionals: Maintaining A Strong Industry Presence

    Find out the most productive methods of networking best suited to ambitious financial professionals.
  4. Investing

    WWE Network Proves to Be What's Best for Business

    World Wrestling Entertainment (NYSE: WWE) has established its over-the-top streaming network as a replacement for pay-per-view revenue. Even though network subscriber numbers move up and down ...
  5. Insights

    Intel and AT&T Launch Platform for IoT (T, INTC)

    Intel and AT&T will both benefit from a more sophisticated digital network, which will realize significant cost savings.
  6. Investing

    Fundamental Analysis for Traders

    Find out how the fundamental analysis method can be applied strategically to increase profits.
  7. Personal Finance

    How To Ruin Your Career Using Twitter And Facebook

    Many people use social media in their professions. However, sometimes things can go wrong. Here are some things you should be aware of when using social media at work.
  8. Insights

    Is F5 Networks a Potential Acquisition Target? (FFIV, GS)

    There’s more upside left for shareholders, given the news of multiple suitors for F5 Networks.
  9. Investing

    WWE Grows Revenue, Network Subscriber Numbers

    World Wrestling Entertainment (NYSE: WWE) posted a decent first quarter, with overall revenue increasing 10% year over year to 188.4 million from $171.1 million. However, the company did see ...
RELATED FAQS
  1. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

    Understand the difference between fundamental, technical and quantitative analysis, and how each measurement helps investors ... Read Answer >>
  2. How is the ability to perform Activities of Daily Living (ADL) measured?

    Find out how to apply sensitivity analysis to your investment decisions, why sensitivity analysis might be useful and what ... Read Answer >>
  3. Why Should an Investor Understand Accounting?

    Learn why an investor should understand business accounting to perform investment and credit analysis. Find out about asset ... Read Answer >>
  4. What is the difference between fundamental and technical analysis?

    Fundamental analysis and technical analysis, the major schools of thought when it comes to approaching the markets, are at ... Read Answer >>
  5. When does a growth stock turn into a value opportunity?

    Learn how fundamental analysts use valuation measures, such as the price-to-earnings ratio, to identify when a growth stock ... Read Answer >>
Trading Center