What does a value network model represent?

A value network model represents the roles and exchanges of value between business units, highlighting how different components of an organization interact and contribute to overall value creation. It focuses on the relationships and interdependencies between various stakeholders, including customers, suppliers, and partners, as well as the flow of information and resources among them. This model illustrates the dynamic nature of value exchange and helps in understanding how a business creates and delivers value through collaborative efforts.

The emphasis on the interactions and contributions of different parts of the organization is crucial for comprehending how value is generated and sustained over time. By analyzing these relationships, businesses can identify opportunities for improvement, streamline processes, and foster innovation, all of which are essential for competitive advantage and long-term success.