What is the Value Net Model, and what are best practices, tools and online templates for teams and organizations?
Definition of Value Net Model
The Value Net Model provides an alternative view of competition. That is, instead of viewing competition as an impediment to profits, competition can be viewed as a beneficial tool to the organization. Specifically, the value net model encourages organizations to collaborate in order to cover a wider range of the market and bring different perspectives to develop efficient and innovative processes. Industries become more profitable and increase in longevity when organizations within them set it up for long-term success.
Description of Value Net Model
The Value Net Model identifies four direct influences on business success: customers, suppliers, competitors, and complementors, and explains strategies for establishing cooperative and productive relationships with them. It is important to note that one company could potentially take on multiple roles.
- Customers: Individuals who purchase the products or services the organization offers and directly contribute to bottom-line performance. The more customers an organization has, the larger its share of the market will be. It is important for an organization to acquire as many customers as possible.
- Suppliers: These companies are the ones who have the resources that are necessary to produce the organization’s products or services. Maintaining good relationships with these individuals is critical because these individuals have a lot of control over the price and quality of these supplies, which can subsequently influence the price and quality of your organization’s goods. It is also critical to have more than one supplier in the event that one company cannot provide you with the necessary resources.
- Competitors: These individuals are the ones who rival your organization for customers and purchase the same resources from suppliers. While competitors are typically viewed negatively, creating partnerships might actually provide more benefits for both companies. With regard to suppliers, combining orders in order to receive a bulk price will provide both organizations with the same products at a lower cost. With respect to customers, if there is an organization that is more dominant in another state or region, combining forces will help to grow both companies nationally or internationally.
- Complementors: These are organizations that offer products or services that would nicely complement those offered by your company and ultimately create a more desirable product for customers. Therefore, the bottom line for both companies would improve.
Tools & Templates
The Value Net Model goes one step beyond Porter’s Five Forces Model. That is, instead of simply evaluating the competitive environment, it uses that information to identify a common basis for establishing complementary relationships. The model is usually summarized and presented in document or presentation software.
upBOARD's Online Value Net Model Tools & Templates
Unlike most traditional Value Net Model techniques, upBOARD’s online Value Net Model tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
Learn more about upBOARD’s portfolio of other business strategy best practice tools and templates, including:
ADL Matrix, Affinity Diagrams, Baker’s 4 Strategies of Influence, Balanced Scorecard, Benchmarking, Blue Ocean Strategy, Bowman Strategy Clock, Build-Measure-Learn Feedback Loop, CAGE Distance Framework, Competitive Analysis, Competitive Landscape Analysis, Contingency Planning, Core Competence Analysis, Critical Success Factors, Discovery Driven Planning, Five Forces Model, Force Field Analysis, Gap Analysis, GE McKinsey 9-Box Matrix, Go To Market Strategy, Hambrick & Frederickson’s Strategy Diamond, Hedgehog Model, Hook Model of Behavioral Design, Hoshin Planning System, Kay’s Distinctive Capabilities Framework, Kotler’s Five Product Levels Model, Kotler’s Pricing Strategies, Lafley & Martin’s Five Step Strategy Model, McKinsey’s Seven Degrees of Freedom for Growth, Mission Statements, Mullin’s Seven Domains Model, OGSM Framework, Ohmae’s 3-C’s Model, PEST Analysis, Porter’s Diamond, Portfolio Management, Purpose Statements, Pyramid of Purpose, Scenario Planning, Simonson & Rosen’s Influence Mix, SOAR, Strategic Goals, Strategic Roadmap, Strategy Map, Strategy Roadmap, Strategy Uncertainty Map, SWOT Analysis, TOWS Matrix, Triple Bottom Line, USP Analysis, Value Chain Analysis, Value Disciplines Model, Value Net Model, Values Statement, Vision Statements, VRIO Analysis, and Weisbord’s Six-Box Model.