Leveraging the Value Web (2)

Figure 5.7 shows a partially completed, generic value transaction matrix.Note that some cells contain all three value dimensions—that is the two constituents transact with each other along the lines of a monetary, informational and intangible value—whereas other cells may show only one or two value dimensions. For example, the value provided by a firm to its customers usually involves all three value dimensions (E, I, T), whereas a customer interacting with affinity groups, such as friends and family, is mostly limited to the exchange of information and opinions (I, T).
Next, we determine the importance of each value transaction to the receiver. We assign to each value dimension a rating of high (5 points), medium (3 points), low (1 point), or not applicable. A constituent who provides value transactions that have a high importance to the receiver will have more power in the web than those constituents who are involved with low-importance value transactions. High-importance value transactions are those that have a significant impact on the solution, usually involving a high degree of customer-facing elements, whereas transactions of medium importance affect the overall customer solution less directly, perhaps due to the availability of multiple alternatives. Value transactions of low importance have little effect on the solution, and are characterized by little customer willingness to pay for or recognize them. Assigning these ratings to each value transaction is both an art and a science. If one is available,
a firm may assign this task to their internal strategy group. More frequently, however, we see firms retaining an outside consultancy such as CGE&Y to prepare an objective assessment of the organization’s value
transactions.

In addition to rating the level of importance of each value transaction, we need to determine the quantity of value transactions and include thatmeasure in our matrix. In other words, we want our model to reflect the
concentration of players in our web, realizing that the number of providers—and accordingly the number of value transactions provided— affects the level of value received. The more providers in a given constituent
group, the more value the receiving party can expect to gain. Accordingly, our scoring index assigns a high (5-point) rating when there are many members in a constituent group. A medium (3-point) rating indicates
a moderate number of value providers in the group, whereas a low (1-point) rating reflects a small number of constituent members. Again, it is crucial that ratings are based on objective, external research and expert
judgment if the analysis is to provide valid results.

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