Visualizing Value Creation

by Jay Deragon on 03/14/2013

What used to be value added is now value creation. Businesses are chasing the promise of value creation as the means to create competitive differential to attract new customers and satisfy existing one.

The quest to create more value has everyone chasing new technologies and new organizational designs.  They are trying to find the answers in organizational maps, social network maps, value network maps and knowledge network maps. Organization of Value


The journey starts with organizational charts. Historically organizational value was created from the top down under the assumption that those at the top were smarter, more experienced and had a history of creating value for consumption.

But the rise of the internet and social technology enabled people to engage and create value from sharing information, knowledge and ideas. This lead to the exploration of the framework known as value networks. Value networks attempted to provide a business analysis perspective that describes social and technical resources within and between businesses. The nodes in a value network represent people (or roles). The nodes are connected by interactions that represent tangible and intangible deliverables.

Then we were introduced to knowledge networks. Knowledge Networks is the term given to different types of team or social networks and communities that are recognized, from a KM perspective, to add significant value to the creation, dissemination and application of better knowledge at a much faster rate. Subsequently we are seeing organizations create positions to map out social connections with value maps and knowledge management processes.

Fundamentally the transition from traditional organization maps to social, value and knowledge network maps represent the mapping of value creation using different elements of value. Each of these theories and subsequent mapping models looks at elements of intangible capital that every organization has .

But what is really needed is to look at all the elements of knowledge, value and social connections in the same visualization. This is the goal with the intangible capital map.  Value creation isn’t just about people or knowledge or relationships or processes or strategies. It’s about all of them. So it’s helpful to include all the elements in a map of the value drivers  within an organization.

The map of intangibles illustrates that the sum of the parts is indeed greater than the whole.

{ 1 comment }

Narender Kumar March 18, 2013 at 6:20 am

Really, to create value for customer we need a Customer Strategy before any Business Strategy. Then we can create true Value for our Customers

Comments on this entry are closed.

Previous post:

Next post: