Value Networks
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The value network is a graphic representation of all of the organizations, groups, and individuals that are or could be involved in the development, marketing, and use of a technology. The value network is derived from the value chain concept.
Traditionally, the value chain [Botkin & Matthews 1992] is used to describe the process by which a new idea gets to market. "The value chain is a sequence of activities during which value is added to a new product or service as it makes its way from invention to final distribution. When a commercially valuable idea takes forever to get from concept to marketplace—or never arrives—the problem is often a weak or missing link (p. 26)." The value chain is composed of several linked stages, which can then be grouped into three phases:
- Phase 1: research, development, design
- Phase 2: production (manufacturing, fabrication)
- Phase 3: marketing, sales, distribution
One key way to navigate the value chain is through partnerships. Ideally, companies specializing in one phase of the value chain would partner with other companies able to complete another phase of the process. For example, large businesses may be weak innovators and/or slow in getting products to market; nonetheless, these bigger corporations can offer smaller partners "stability and credibility, established marketing and distribution channels, and financial resources that are almost unimaginable to strapped young companies (p. 32)."
Determining the value chain for SEI technologies is slightly different since most SEI technologies are not a commercial grade product entering the marketplace. However, activities with partners can help to transition a technology into widespread use. In considering the value network for a technology, partnerships may be sought for the following reasons:
- revenue generation, funding for building additional elements of the whole product for majority users
- in-kind resources, a variant to revenue generation, as above
- speed and efficiency, partnerships which decrease the time to widespread use
- influence, partnerships with key players and opinion leaders (who others reference and follow)
Example High Level Value Network
Four major players are critical in the development and transition of most SEI technologies. These organizations are expected to have early involvement with the SEI technology:
- The SEI technology team (listed as <technology> in the figure)
- Collaborators
- Value-added distribution partners
- Other (non-<technology>) technology developers
This table summarizes the characteristics of these network entities.
|
Value Network Category |
Brief Description |
Examples |
Involvement |
|
Technology team |
Responsible for development, maturation, & transition of the technology into the community |
<insert examples for your technology> |
Early |
|
Collaborators |
External parties who have invested resources (skills or funding) for development & maturation of the technology |
<insert examples for your technology> |
Early |
|
Value-added Distribution Partners |
External parties who see the technology as valuable & are willing to pay (in kind or funding) for use of the technology Primarily involved with applying the technology |
SEI Transition Partners who include the technology in their offerings |
Early |
|
Other (non-<technology>) Technology Developers |
Orgs developing new products who may benefit from use of the technology to deploy support technologies |
Early | |
|
SEI Business Units |
Enabling portions of SEI that support maturation/transition of technologies without actually being on the team |
Licensing Events Management |
Mid-term |
|
Authorizing Sponsors |
Internal & external roles who determine how resources will be allocated, including how much will be allocated to the technology |
SEI Director’s Office |
Mid-term |
|
End Users |
Parts of an organization that adopt technologies on a regular basis |
Early (via Value-Added Partners) or Mid-term |
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