April 13, 2008

Value Network Maturity Model

Verna Allee and Oliver Schwabe

Levels of maturity are standard levels that have been the foundation for many different kinds of maturity models:

http://en.wikipedia.org/wiki/Capability_Maturity_Model

The maturity model can be adapted to value networks as well to address questions of competency in value network strategies. Companies often achieve great success with a value network business model, or internal collaborative value networks, only to have that advantage erode over time. Why is that? In our experience, an organization as not truly mastered value network analysis finds it increasingly difficult to hold the line against the embedded bureaucratic model of organization. As the organization grows in complexity people try to “control” the value network by imposing bureaucratic order either through reshuffling the organizational chart or driving activity into tightly controlled process models.

Value Network Maturity Model

The criteria used for judging value network maturity are as follows:

Level 1: organizations participating in the value network are only broadly described and not named.
Level 2: organizations participating in the value network are described clearly but not named.
Level 3: organizations participating in the value network are named specifically and general responsibilities listed.
Level 4: the responsibilities or roles of the named organizations participating in the value network are listed specifically.
Level 5: Not only are responsibilities or roles of the named organizations well defined but also the specific nature of their relationships, interactions and deliverables to other participants in the network.

This criterion is based on the assumption that the level of detail achieved in a value network description corresponds to the maturity of the value network within which it operates. Thus when specific organizations and responsibilities are not described it is because the network is immature and the boundaries, roles and interactions are not clear. When the participants and responsibilities can be specifically described it is assumed the network has reached a more robust maturity. At level 5 maturity participants in the network are able to describe it in detail and participants, roles and responsibilities, and role outputs are more commonly known.

http://en.wikipedia.org/wiki/Capability_Maturity_Model

See the Annexes to the Final Report: Effectiveness of IST RTD Impacts on the EU Innovation System. http://www.value-networks.com/caseStudies/EU%20Innovation%20System%20-Annexes.pdf

by jheuristic

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