1. Value Network Insights™ What is Value Network Analysis? verna.allee@valuenetworks.com Verna Allee, CEO Twitter @vernaallee

2. So why not model the work itself as a network? People naturally network as they work. May 19, 20152 Value Network Analysis models value creation with a powerful human network approach to managing any business activity. © 1997-2011 Value Networks, LLC All rights reserved.

3. How do people create value? May 19, 20153 By assuming or creating roles … to convert their tangible and intangible assets into deliverables … that can be conveyed to other roles through the execution of a transaction. In turn, value is realized by companies when they convert inputs into gains. Allee, Journal of Intellectual Capital, January 2008 Value Conversion Strategy Utilize Assets Tangible and Intangible Assets Roles Realize Value Financial Assets Human Competence Brand and Relationships Internal Structure Deliverables Transactions © 1997-2011 Value Networks, LLC All rights reserved.

4. How Networks Create Value May 19, 20154 Value networks are sets of roles and value exchanges that generate a specific kind of value. Any purposeful activity can be understood as a value network. Allee, Journal of Intellectual Capital, January 2008 Value Creating Network © 1997-2011 Value Networks, LLC All rights reserved.

5. Value Network Analysis Discovers  How the work actually gets done  The kind of value you are really creating  How efficiently your organization (and the network it supports) converts resources (inputs) to value outputs (value conversion)  Where the value creation failure points are in the networks (problem flows, roles, mechanisms) Value conversion is the act of altering or transforming one type of value into another, such as transforming an Intangible asset into a Tangible Deliverable. May 19, 20155© 1997-2011 Value Networks, LLC All rights reserved.

6. Value Network Modeling May 19, 20156 Roles Intangible (Informal) Interactions Tangible (Formal) Deliverables © 1997-2011 Value Networks, LLC All rights reserved.

7. Shift is to focus on Roles that are played by individual participants… May 19, 20157© 1997-2011 Value Networks, LLC All rights reserved.

8. Tangible Deliverables Goods, services, revenue (traditional value chain) – all contractual or mandated activities that directly generate or deal with revenue or funding. Tangible Deliverables Goods, services, revenue (traditional value chain) – all contractual or mandated activities that directly generate or deal with revenue or funding. …and Value Exchanges May 19, 20158© 1997-2011 Value Networks, LLC All rights reserved. Knowledge and support offerings – strategic information, collaborative design, plans, processes, policy development, etc. Benefits that go beyond actual service such as exchanging business contacts, image enhancement, recognition, co-branding opportunities, etc. Intangible Deliverables

9. Formal (Tangible) Deliverables May 19, 20159 AgResearch Commercialization Can take up to twelve years from idea to market. © 1997-2011 Value Networks, LLC All rights reserved.

10. Informal Deliverables Define Collaboration May 19, 201510 Intangibles keep the relationships alive. AgResearch Commercialization © 1997-2011 Value Networks, LLC All rights reserved.

11. Realizing Value for Network Participants May 19, 201511© 1997-2011 Value Networks, LLC All rights reserved. Impact Analysis How do we grow our financial and intangible assets from inputs?

12. Creating Value in and through the Network May 19, 201512© 1997-2011 Value Networks, LLC All rights reserved. Value Creation Analysis What value offerings do we create to best utilize our financial and non financial assets?

13. Value Network Indicators May 19, 201513© 1997-2011 Value Networks, LLC All rights reserved. Business Performance Business Performance Network Vitality Value Optimization Brand & Relationships Value Creation Value Realization Intangible Asset Mgmt Financial Impact Value Creation Value Realization Intangible Asset Mgmt Financial Impact Perceived Value Reciprocity Value Contributors Innovation Pathways Perceived Value Reciprocity Value Contributors Innovation Pathways Resilience Structural Dependency Benchmarks Agility and Stability Resilience Structural Dependency Benchmarks Agility and Stability Risk Flow Path Optimization Channel Management Speed Risk Flow Path Optimization Channel Management Speed Value Network Intelligence 13

14. ValueNetworks.com A network view of the work itself May 19, 201514© 1997-2011 Value Networks, LLC All rights reserved. CITAP Inputer - RO_IDS SOW Inputer - RO BCA SOW final validator Integrator of test requirements Authorized management SOW approver(s) Technical Designer-finalizer PO coordinator IDS requirements researcher-author - SOW Initiator Communication convener Functional resource estimator RO SOW Final Approver Resource Owner FOTV-BCA PO info advisor ITAR_EAR Analyst-Determiner RO RFP Creator BCA RFP Reviewer PIW Creator Non-FTO_V estimate collector-checker-coordinator SOW technical evaluator-reviewer Non-FTOV estimate collector-checker-coordinator Functional SME Authorized management PIW approver PoP Adjuster Coordinator BCA SOW estimate and PoP validator Test estimate reasonableness assessor Test estimate collector-checker-documenter Functional estimate approver Test estimate requester BCA estimate integrator BCA Pricer BCA Price approver Expiration date assigner BCA Proposal Creator BCA cost policy reviewer CITAP Project Manager BCA work performer BCA proposal implementer Chargeline assigner Job Number Assigner IDS Proposal evaluator-acceptor authorized management approver IDS financial analyst IDS Technical Analyst IDS Cost Analyst 0 0 0 0 0 0 0 00 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 00 0 00 00 0 0 0 0 0 0 0 0 00000 0 00 0 00 0 0 0 0 00 0 0 0 0 0 0 0 000 0 00 00 0 0 0 00 0 0 00 0 0000 0 0 00 000 0 0 0 0 0 00 00 0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0 0 0 0 0

15. Performance and Agility © 1997-2011 Value Networks, LLC All rights reserved.May 19, 201515 More accurately depict business performance: Identify quickly how the work really happens. Activate your networks with a business focus. Design work flows that work better (improve performance). Align business processes and human interactions. Monitor and Predict when work processes are at risk. Improve performance of any business activity. Realize greater value from collaboration.

16. Our Company May 19, 201516© 1997-2011 Value Networks, LLC All rights reserved. Applications for (value) network visualization, analysis, optimization Unique value network analytics and predictive intelligence Expert guidance, training, services Value Network Applications (SaaS) Value Network BI and Analytics Predictive Intelligence Expert Services Blog at www.valuenetworks.com LinkedIn ValueNetworks.com Value Networks Twitter @valuenetworks and @vernaallee