Value networks

Curran T, Keller G (1998) SAP R/3 Business Blueprint understanding the business process reference model, Prentice Hall, Upper Saddle River Datta S, Betts B, Dinning M, Erhun F, Gibbs T, Keskinocak P, Li H, Li M, Samuels M (2004) Adaptive Value Networks, In Chang YS, Makatsoris H, Richards H (eds) Evolution of Supply Chain Management. Kluwer Academic Publishers, Norwell, MA, pp 3-68... 

Framework conditions, impulses and influential factors affect the value networks externally (state, public). These include both legal and market structures and impnlses. 

In this equation, viscosity is independent of the degree of dispersion. As soon as the ratio of disperse and continuous phases increases to the point where particles start to interact, the flow behavior becomes more complex. The effect of increasing the concentration of the disperse phase on the flow behavior of a disperse system is shown in Figure 8-41. The disperse phase, as well as the low solids dispersion (curves 1 and 2), shows Newtonian flow behavior. As the solids content increases, the flow behavior becomes non-Newtonian (curves 3 and 4). Especially with anisotropic particles, interaction between them will result in the formation of three-dimensional network structures. These network structures usually show non-Newtonian flow behavior and viscoelastic properties and often have a yield value. Network structure formation may occur in emulsions (Figure 8-42) as well as in particulate systems. The forces between particles that result in the formation of networks may be... 

Re-Intermediation Service providers no longer specialize in just one part of the value chain. They become aggregators who provide any financial service to their customers in connection with MPF. We observe a move from value chain management to value network management. 

The challenge of a successful e-MPF implementation is to develop a transparent, seamless alliance-based value network (Bakos Brynjolfsson, 1998) that allows the customer to choose the best product combination for his or her personal needs without having to research the complex supplier market. Convenience and flexibility must be provided without compromising on security and privacy issues. Since e-MPF services have just been launched, it... 

Brick 3 Knowledge Building Effective Supply Chain Processes. Putting Value in value Networks... 

While companies attempted to implement best practices over the last 30 years, they are now grappling with the fact that many Y2K projects built an efficient supply chain without resiliency. These investments made the supply chain strong, but not agile. Today, most companies have processes that can respond, but cannot adapt. They are too rigid. They cannot sense and adapt to market shifts. This is the basis of the drive to create market-driven value networks. 

As a result, the focus of supply chain processes is shifting from inside-out to outside-in. To connect a network of smaller networks of suppliers, logistics providers, and third-party manufacturers, there is a shift from a vertical focus or building functional excellence in operations to the building of horizontal processes to connect value networks. In this transition, compaiues learn that they must break... 

The largest benefit of a demand-driven value network is assessing and building the value network to meet upcoming demand. The use of technologies to sense market insights from unstructured data has helped companies to sense potential supplier failures before the... 

These networks are termed market-driven value networks. Market-driven snpply chains are adaptive networks that can quickly align organizations market to market focnsed on delivering a value-based... 

Today, with 30 years of supply chain history behind us, companies no longer have to stumble forward. Instead, they can harvest the insights from the pioneers and build value networks to drive lasting value. 

In subsequent chapters, we share insights on five areas to start the journey. In Chapter 2, we discuss the growing importance of value networks. In Chapters 3 and 4, we share insights on demand and supply processes while in Chapter 5, we discuss how to make the right changes to define horizontal processes. 

Let s start the discussion with definitions. When the supply chain is extended to a network of trading partners, it is termed a supply network. When the emphasis of this extended supply chain shifts from cost to value, it is called a value chain. When it becomes more strategic to the company, focused outside-in to drive value-based outcomes, it is termed a value network. 

Here we discuss the journey from extended supply chains to value networks. We start with the discussion of how to move from a cost to value and then share insights on how to use this focus to build the right relationships. We then share lessons from the pioneers. 

What are the right things to do to increase company vaiue Value-network Strategy... 

How Do I Transcend Supply Chain Design Concepts to Build Value Networks ... 

Supply chain processes are characterized by industry. The processes are very specific. As value chains are built, industries are coupled together to build extended supply chains. When industries focus on value-based outcomes, it is termed value networks. 

To make a value network, trading partners from different industries form a chain and link together to drive an end-to-end supply chain solution. These links are forged to provide a set of products or services for the end customer. For example ... 

Defense and warfare value networks. The combination of the armed services, government programs, A D, logistics providers, and discrete manufacturers to provide goods and services for the deployment of effective missions. 

Consumer-driven value networks. The combination of retail, consumer manufacturers, logistics providers, and chemical suppliers to provide products for sale in retail channels. 

Health-care value networks. The combination of hospitals, clinics, insurance providers, medical device, and pharmacentical companies focnsed on improving health-care services to patients. 

Industrial value networks. The combination of distributors, discrete manufacturers, industrial equipment companies, and logistics providers to service manufacturers, the building industry, and commerdal operations. 

Within these value chains, change happens frequently. Relationships come and go. The value chain is characterized by the number of nodes in the network, the number and type of constraints, the variability of demand and supply, the rhythms and cycles of decisions, the products and shipments, and the latency of information. Five years ago, the design of supply chains and value networks was an ad hoc process. Today, over 35 percent of companies have planning teams to rationalize the design and refine the network for current conditions. In our interviews, we learned that these teams are growing in both size and importance. 

A value network is a higher-level concept than a supply chain. It is a commitment by multiple parties to work together for a shared outcome. These relationships are more strategic and are governed by contracts, scorecards, and performance to compliance standards. These networks enable new capabilities. They allow the company to sense and adapt to market forces. They can bring new assets, capabilities, or intellectual property to the supply chain through joint innovation. 

The questions surrounding outsourcing and the building of strategic relationships through value networks are answered in the development of the supply chain strategy. This is easier said than done. It is ongoing. Most supply chains are complex. 

Value networks do not just happen. Extending the supply chain outward from the enterprise through strategic relationships is an integral piece of the supply chain strategy. It takes time. It is a staged progression. Concentrated effort and a shared vision are essential. Network orchestration is critical. 

To extend the supply chain from an internal to an external focus requires skills, incentives, resources, planning, and leadership. There are many stops and starts. Relationships need to be treated differently based on importance, capabilities, and strategic alignment. Before companies can build successful value networks, they have to be clear on what determines value in the supply chain strategy. 

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