Why Use the Framework?

There are two major benefits associated with a Value Web analysis (see Figure 5.2). First, going through the exercise of developing and completing the Value Web framework for any given firm offers strategic insights into the firm’s business environment. A completed Value Web allows its users to better comprehend the complexities of the conditions the firm is operating in by laying out the entities and the strengths of the connections between them. Secondly, identifying Value Web constituents and mapping their relationships is the foundation for formulating corporate and competitive strategies. Only when the network is understood can the firm begin to identify, pursue, and exploit strategic opportunities to enhance the customer experience while improving the firm’s competitive position.

On the external side, insights gained from analyzing the completed framework can be used to better understand the firm’s general industry, a distinct market space, incumbent constituents, and their relationships. Among the constituents we count, as previously mentioned, competitors, suppliers, service providers, retailers and resellers, complementors, affinity groups, and independent authorities.

When applied to the firm’s internal operations, a Value Web analysis can discover relations and interdependencies among functional departments, strategic business units, or multiple organizations within a multibusiness conglomerate. Company-internal constituents may include functional departments such as Human Resources, Sales, Marketing, Legal, Support, and Information Technology. Or they might entail operations segregated by geographic boundaries such as the Americas, Europe, or Asia-Pacific.

Taken From : Enterprise Guide to Gaining Business Value from Mobile Technologies

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