Step #4: Defining Value Transactions

Having identified all relevant life-cycle stages, their constituents, and the value each brings to the customer, we are now ready to draft Acme’s Value Web, which will illustrate the types of transactions our constituents engage in. Figure 5.6 shows a completed Value Web for Acme’s brokerage offering. Note that we are using solid lines between constituents when they are interacting at a close level, usually in the form of an exchange of a tangible offering. We distinguish these transactors from influencers, represented at the nodes of a dotted line. Dotted lines denote indirect or nonfinancial relationships that are of an influential, rather than a physical, nature. For example, although suppliers interact directly with the firm by providing
raw materials required for production, they rarely engage in customerfacing activities. A customer consulting with independent authorities is captured via a dotted line because no financial transaction takes place. Similarly, the customer’s relation to the firm’s competition is indirect, because by definition for our Value Web analysis the competitor is not the entity that the customer will end up purchasing from.

Now that we have completed the customer life cycle, identified the customer’s needs at each stage, listed the companies that seek to address each need, and defined the constituents’ value transactions, we can begin to analyze the work completed thus far and draw some conclusions.

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

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