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Summary: Capturing value using a value net
Review: Value Nets is an intriguing look at businesses that have revolutionized the way the do business by revolutionizing their supply chain. What is a Value Net? According to the author a value net "is a business design that uses digital supply chain concepts to achieve both superior customer satisfaction and company profitability". One of the main concepts of a value net is that it operates in parallel manner rather then a rigid sequential chain. Value Nets have the following five main characteristics: Customer-alignment
Collaborative and systemic
Agile and scalable
Fast flow
Digital Value Nets builds on the work of The Profit Zone, which define five elements of a value-creating business design. These five elements are defined as follows: Value proposition - a company's value proposition consists of products and services that add value to customers.
Scope - what activities are required to deliver the company's value proposition and who delivers them (internal or partner).
Profit capture - mechanisms that capture profit from the value proposition
Strategic control - elements that protect profits over time
Execution - operational excellence Value Nets take the five characteristics of the value net and show case studies of how companies implemented value nets within the context of the five elements of business design listed above. The models that this book lays out are quite useful for considering how a product or service is delivered. The case studies and example in this book are quite useful and cover several industries. Most of the examples relate to product companies, but the concepts can be applied to services companies as well. This book is a interesting and useful read for business consider how to interact with partners, competitors, suppliers and customers in the digital age. I would recommend reading the Appendix Value Net Self-Diagnostic first because is a great intro to the book. If this book resonates well with you might also like How Digital Is Your Business and The Profit Zone (also from Mercer Consulting).
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