VALUE CREATION DESIGN: MODELING OF VALUE NETWORKS

Abstract

As digitalization revolutionize products, production systems and entire value creation, the implications for manufacturer’s business opportunities are huge. Filling out well-known frameworks will not suffice anymore for successful business. To take advantage of digitalization-based opportunities, organizations need to rethink their mindset about value creation. One of the key challenges is a thorough planning of the value network to achieve a well-structured shift from current, outdated to future value creation. Organizations simplify planning and analysis of business models to improve or reinvent them. This paper presents a modeling language for value networks to support planning and complexity reduction. Modeling the rationale of how an organization creates, delivers and captures value and the interrelations of how organizations operate in value networks is a powerful technique for incremental concretization and improvement of new business models and customer-seeking products and services.