New paper forwarded by David Meggitt and posted in your Value Networks Consortium open site.
<http://www.value-networks.com/Articles/Estimating%20Value.pdf> Estimating Value in Service Systems: A Case Study of a Repair Service System - Globalization of the world economy has led to an increased ability of companies to outsource the planning, design, manufacturing, and distribution functions of their products and services around the globe. It is leading the deconstruction of formerly vertically organized companies and industries into comprehensive service systems known as value networks. This empirical case research shows the value they deliver, how they deliver it, and how value can be discovered and increased in service systems. IBM Systems Journal (2008)
From: Value-Networks@googlegroups.com [mailto:Value-Networks@googlegroups.com] On Behalf Of John Maloney (IM: jheuristic) Sent: Sunday, May 25, 2008 11:37 AM To: Value-Networks@googlegroups.com Cc: ncasw...@us.ibm.com Subject: Estimating Value
Hi -
New paper forwarded by David Meggitt and posted in your Value Networks Consortium open site.
<http://www.value-networks.com/Articles/Estimating%20Value.pdf> Estimating Value in Service Systems: A Case Study of a Repair Service System - Globalization of the world economy has led to an increased ability of companies to outsource the planning, design, manufacturing, and distribution functions of their products and services around the globe. It is leading the deconstruction of formerly vertically organized companies and industries into comprehensive service systems known as value networks. This empirical case research shows the value they deliver, how they deliver it, and how value can be discovered and increased in service systems. IBM Systems Journal (2008)
As a shared site, 100% sponsored by the Value Networks Consortium, http://www.value-networks.com/, depends entirely on your VN community for content, advice, fixes, etc.
Site comments, content and fixes are not only encouraged and welcome, they're expected!
From: Value-Networks@googlegroups.com [mailto:Value-Networks@googlegroups.com] On Behalf Of Fran Kelly Sent: Monday, May 26, 2008 9:13 AM To: Value-Networks@googlegroups.com Subject: RE: Estimating Value
From: Value-Networks@googlegroups.com [mailto:Value-Networks@googlegroups.com] On Behalf Of John Maloney (IM: jheuristic) Sent: Sunday, May 25, 2008 11:37 AM To: Value-Networks@googlegroups.com Cc: ncasw...@us.ibm.com Subject: Estimating Value
Hi -
New paper forwarded by David Meggitt and posted in your Value Networks Consortium open site.
<http://www.value-networks.com/Articles/Estimating%20Value.pdf> Estimating Value in Service Systems: A Case Study of a Repair Service System - Globalization of the world economy has led to an increased ability of companies to outsource the planning, design, manufacturing, and distribution functions of their products and services around the globe. It is leading the deconstruction of formerly vertically organized companies and industries into comprehensive service systems known as value networks. This empirical case research shows the value they deliver, how they deliver it, and how value can be discovered and increased in service systems. IBM Systems Journal (2008)
> As a shared site, 100% sponsored by the Value Networks Consortium,http://www.value-networks.com/, depends entirely on your VN community for
> content, advice, fixes, etc.
> Site comments, content and fixes are not only encouraged and welcome,
> they're expected!
> From: Value-Networks@googlegroups.com
> [mailto:Value-Networks@googlegroups.com] On Behalf Of Fran Kelly
> Sent: Monday, May 26, 2008 9:13 AM
> To: Value-Networks@googlegroups.com
> Subject: RE: Estimating Value
> From: Value-Networks@googlegroups.com
> [mailto:Value-Networks@googlegroups.com] On Behalf Of John Maloney (IM:
> jheuristic)
> Sent: Sunday, May 25, 2008 11:37 AM
> To: Value-Networks@googlegroups.com
> Cc: ncasw...@us.ibm.com
> Subject: Estimating Value
> Hi -
> New paper forwarded by David Meggitt and posted in your Value Networks
> Consortium open site.
> <http://www.value-networks.com/Articles/Estimating%20Value.pdf> Estimating
> Value in Service Systems: A Case Study of a Repair Service System -
> Globalization of the world economy has led to an increased ability of
> companies to outsource the planning, design, manufacturing, and distribution
> functions of their products and services around the globe. It is leading the
> deconstruction of formerly vertically organized companies and industries
> into comprehensive service systems known as value networks. This empirical
> case research shows the value they deliver, how they deliver it, and how
> value can be discovered and increased in service systems. IBM Systems
> Journal (2008)
George,
Good evening and thank you for introducing yourself.
Please convey good wishes and respects to your colleague Prof Christos
Nikolaou at the University of Crete. He kindly supplied me with a link
to a workshop and summer school that is coming up in Palermo in June
2nd in which he will be talking about value network analysis - theory
and tools. http://ssme2008.tsl.gr/
It was good to receive your paper for at least three reasons:
1) It acknowledged the seminal work by Verna Allee in developing a
methodology for analyzing the dynamics of value in value networks,
with an emphasis on visualization and qualitative methods.
2) It formed an underpinning element via the insights of co-author
Nathan Caswell at IBM to the proposition of a "core business
architecture (CBA) for a service-oriented enterprise" published also
in the IBM Systems Journal. In proposing the CBA for use in various
business reasoning situations, this particular article formulated a
seven step approach for introducing a new service offering as a major
event in most large enterprises. Value network analysis was used in
three of these steps.
3) It demonstrated how the value network "lens" can be represented
using the language of mathematics, with its modelling applications.
I do have a question for you. Conventionally, value network analysis
(VNA) deems intangibles as not having a monetary value - otherwise it
becomes tangible. Your paper attempts to put a monetary value to
intangibles and relate that to the intangible assets concept using
links between relationship value, satisfaction indices and utility
functions (referring to other papers). These of course are highly
subjective but do enable you to develop expressions and impute values
for the variables. Presumably there would be no difficulty in
stripping out the valuation of intangibles and leaving us with
"simplified" version that deals only with tangibles.
I would also add the observation that a key contribution of value
network applications is the insight that participants gain in
creating the value network diagram in the first place and developing
co-creatively the alternative models for study in the transformation
options that you describe.
Regards... David Meggitt
On May 28, 12:50 am, George Koutras <george.kout...@gmail.com> wrote:
> > As a shared site, 100% sponsored by the Value Networks Consortium,http://www.value-networks.com/, depends entirely on your VN community for
> > content, advice, fixes, etc.
> > Site comments, content and fixes are not only encouraged and welcome,
> > they're expected!
> > From: Value-Networks@googlegroups.com
> > [mailto:Value-Networks@googlegroups.com] On Behalf Of Fran Kelly
> > Sent: Monday, May 26, 2008 9:13 AM
> > To: Value-Networks@googlegroups.com
> > Subject: RE: Estimating Value
> > From: Value-Networks@googlegroups.com
> > [mailto:Value-Networks@googlegroups.com] On Behalf Of John Maloney (IM:
> > jheuristic)
> > Sent: Sunday, May 25,2008 11:37 AM
> > To: Value-Networks@googlegroups.com
> > Cc: ncasw...@us.ibm.com
> > Subject: Estimating Value
> > Hi -
> > New paper forwarded by David Meggitt and posted in your Value Networks
> > Consortium open site.
> > <http://www.value-networks.com/Articles/Estimating%20Value.pdf> Estimating
> > Value in Service Systems: A Case Study of a Repair Service System -
> > Globalization of the world economy has led to an increased ability of
> > companies to outsource the planning, design, manufacturing, and distribution
> > functions of their products and services around the globe. It is leading the
> > deconstruction of formerly vertically organized companies and industries
> > into comprehensive service systems known as value networks. This empirical
> > case research shows the value they deliver, how they deliver it, and how
> > value can be discovered and increased in service systems. IBM Systems
> > Journal (2008)
Good morning,
Here is the answer from Prof. Christos Nikolaou:
Dear David,
sorry for not responding earlier, have been at the SSME 2008 workshop…
Thanks for including our paper in your literature list, my best
regards to Verna! Thanks also for your comments on our paper to which
I agree.
On your question: In theory yes one could strip down the intangibles
and have simplified expressions of value, as you say. that include
only the tangibles. However, I would think that a significant part of
the value attributed to value networks (and I am sure Verna would
agree with this) is generated through the intangibles – the
“networkness” of the value network, which is essentially the value
that partners attribute to their mutual relationships. We do offer ONE
possible way to quantify these relationships, I am sure there are
other, possibly better. We hope that we can get the discussion going
so that more ideas can be generated.
all the best
christos
On May 28, 2:19 pm, David Meggitt <david.megg...@gmail.com> wrote:
> George,
> Good evening and thank you for introducing yourself.
> Please convey good wishes and respects to your colleague Prof Christos
> Nikolaou at the University of Crete. He kindly supplied me with a link
> to a workshop and summer school that is coming up in Palermo in June
> 2nd in which he will be talking about value network analysis - theory
> and tools.http://ssme2008.tsl.gr/
> It was good to receive your paper for at least three reasons:
> 1) It acknowledged the seminal work by Verna Allee in developing a
> methodology for analyzing the dynamics of value in value networks,
> with an emphasis on visualization and qualitative methods.
> 2) It formed an underpinning element via the insights of co-author
> Nathan Caswell at IBM to the proposition of a "core business
> architecture (CBA) for a service-oriented enterprise" published also
> in the IBM Systems Journal. In proposing the CBA for use in various
> business reasoning situations, this particular article formulated a
> seven step approach for introducing a new service offering as a major
> event in most large enterprises. Value network analysis was used in
> three of these steps.
> 3) It demonstrated how the value network "lens" can be represented
> using the language of mathematics, with its modelling applications.
> I do have a question for you. Conventionally, value network analysis
> (VNA) deems intangibles as not having a monetary value - otherwise it
> becomes tangible. Your paper attempts to put a monetary value to
> intangibles and relate that to the intangible assets concept using
> links between relationship value, satisfaction indices and utility
> functions (referring to other papers). These of course are highly
> subjective but do enable you to develop expressions and impute values
> for the variables. Presumably there would be no difficulty in
> stripping out the valuation of intangibles and leaving us with
> "simplified" version that deals only with tangibles.
> I would also add the observation that a key contribution of value
> network applications is the insight that participants gain in
> creating the value network diagram in the first place and developing
> co-creatively the alternative models for study in the transformation
> options that you describe.
> Regards... David Meggitt
> On May 28, 12:50 am, George Koutras <george.kout...@gmail.com> wrote:
> > Good evening,
> > Since I am a co-author on this paper then I would be eager to answer
> > any questions that you may have.
> > Kind Regards,
> > George Koutras
> > On May 26, 7:35 pm, "John Maloney \(IM: jheuristic\)"
> > > As a shared site, 100% sponsored by the Value Networks Consortium,http://www.value-networks.com/, depends entirely on your VN community for
> > > content, advice, fixes, etc.
> > > Site comments, content and fixes are not only encouraged and welcome,
> > > they're expected!
> > > From: Value-Networks@googlegroups.com
> > > [mailto:Value-Networks@googlegroups.com] On Behalf Of Fran Kelly
> > > Sent: Monday, May 26, 2008 9:13 AM
> > > To: Value-Networks@googlegroups.com
> > > Subject: RE:EstimatingValue
> > > From: Value-Networks@googlegroups.com
> > > [mailto:Value-Networks@googlegroups.com] On Behalf Of John Maloney (IM:
> > > jheuristic)
> > > Sent: Sunday, May 25,2008 11:37 AM
> > > To: Value-Networks@googlegroups.com
> > > Cc: ncasw...@us.ibm.com
> > > Subject:EstimatingValue
> > > Hi -
> > > New paper forwarded by David Meggitt and posted in your Value Networks
> > > Consortium open site.
> > > <http://www.value-networks.com/Articles/Estimating%20Value.pdf>Estimating
> > > Value in Service Systems: A Case Study of a Repair Service System -
> > > Globalization of the world economy has led to an increased ability of
> > > companies to outsource the planning, design, manufacturing, and distribution
> > > functions of their products and services around the globe. It is leading the
> > > deconstruction of formerly vertically organized companies and industries
> > > into comprehensive service systems known as value networks. This empirical
> > > case research shows the value they deliver, how they deliver it, and how
> > > value can be discovered and increased in service systems. IBM Systems
> > > Journal (2008)
Here is a recent comment from Verna in another group that is germane to this thread on intangible asset management.
-j
--- One of the great strengths of VNA is that it is designed to link transactions and deliverables to performance indicators and asset management. Often, corporate CFOs and accounts are not tuned in at all to the kind of intangible asset management that VNA supports. The performance indicators as used in VNA also typically are not taken to the corporate level but are more focused at the transaction and network level. The full methodology does provide for development of performance indicators. This capability is critical to Boeing in their Flight Test Operations & Validation Group, for example. They have used VNA to achieve sharp and continuous growth in testing productivity vis-à-vis intangible asset management. This organization of 3500 people uses the methodology to redefine needed roles and interactions when they are undergoing organizational change or complex process improvements. Part of their work is to use the performance indicator feature of VNA in all of their workshops to negotiate performance requirements at the transaction level.
Another aspect of VNA that does fit into the CFO office is linking role and network performance to both financial and non-financial asset management. You may want to take a closer look at the How To Guides on the open site, especially the Impact Analysis and Value Creation Analysis which shows the details of how this approach supports intangible asset management. The Impact Analysis assess every deliverable for its impact on both financial and non-financial assets. Non financial assets are typically things like human competence, internal structure and business relationships. On the Value Creation side every output or deliverable is assessed in terms of asset utilization, using the same categories as well as the overall value impact for industry, society and the environment. If a company is tuned into the importance of intangibles then they value this aspect of VNA highly. 80% of company value being its intangibles that intangible assets is hard to ignore. It is very encouraging to see large and diverse organizations begin to understand intangible asset management using visualization and optimization applications of VNA. There is a lot of low-hanging fruit for the early adopters.
In responding to this message I scrolled down to the original question around intangible asset management. I have been very fortunate to part of the pioneering group in intangible assets and intellectual capital. (former member of the Brookings Institution Task Force on Intangibles in 1997). It was a very tight community in the mid to late 1990s So Tom Stewart was one of the very early fans of VNA because of the way it honors and links to intangible assets. Tom is now editor of the Harvard Business Review and you can see his influence in the frequent inclusion of articles that mention intangibles. So we are very slowly making some headway against the biases toward tangibles. Feel free to repost this wherever you feel appropriate
[mailto:Value-Networks@googlegroups.com] On Behalf Of George Koutras Sent: Monday, June 16, 2008 2:22 AM To: Value Networks Subject: Re: Estimating Value
Good morning, Here is the answer from Prof. Christos Nikolaou:
Dear David,
sorry for not responding earlier, have been at the SSME 2008 workshop… Thanks for including our paper in your literature list, my best regards to Verna! Thanks also for your comments on our paper to which I agree.
On your question: In theory yes one could strip down the intangibles and have simplified expressions of value, as you say. that include only the tangibles. However, I would think that a significant part of the value attributed to value networks (and I am sure Verna would agree with this) is generated through the intangibles – the “networkness” of the value network, which is essentially the value that partners attribute to their mutual relationships. We do offer ONE possible way to quantify these relationships, I am sure there are other, possibly better. We hope that we can get the discussion going so that more ideas can be generated.
I do not totally agree with you on the tangibles / intangibles part. Maybe it´s only a matter of definitions, but let me clarify my points.
Looking at companies, the value of companies is composed by tangible assets (buildings, machines) and intangible assets (patents, innovation competency, networks, customer relations....). The intangible assets comprise app. 80% of the market value of most companies. Certainly, the tangible assets are easier to valuate and that is what accountants do.
Now, the value networks comprise part of the intangible assets and thus of the monetary value of the company. So, I cannot really see how in Value Network Analysis can "strip out the valuation of intangibles and leaving us with "simplified" version that deals only with tangibles."
I would argue, that all the intangibles being discussed here add to the intangible assets as such, however difficult to describe, calculate or valuate.
Regards, Thomas
---------------------- Koutras Sendt: 16. juni 2008 11:22 Til: Value Networks Emne: Re: Estimating Value
Good morning, Here is the answer from Prof. Christos Nikolaou:
Dear David,
sorry for not responding earlier, have been at the SSME 2008 workshop… Thanks for including our paper in your literature list, my best regards to Verna! Thanks also for your comments on our paper to which I agree.
On your question: In theory yes one could strip down the intangibles and have simplified expressions of value, as you say. that include only the tangibles. However, I would think that a significant part of the value attributed to value networks (and I am sure Verna would agree with this) is generated through the intangibles – the “networkness” of the value network, which is essentially the value that partners attribute to their mutual relationships. We do offer ONE possible way to quantify these relationships, I am sure there are other, possibly better. We hope that we can get the discussion going so that more ideas can be generated.
all the best
christos
On May 28, 2:19 pm, David Meggitt <david.megg...@gmail.com> wrote:
> George, > Good evening and thank you for introducing yourself.
> Please convey good wishes and respects to your colleague Prof Christos > Nikolaou at the University of Crete. He kindly supplied me with a link > to a workshop and summer school that is coming up in Palermo in June > 2nd in which he will be talking about value network analysis - theory > and tools.http://ssme2008.tsl.gr/
> It was good to receive your paper for at least three reasons:
> 1) It acknowledged the seminal work by Verna Allee in developing a > methodology for analyzing the dynamics of value in value networks, > with an emphasis on visualization and qualitative methods. > 2) It formed an underpinning element via the insights of co-author > Nathan Caswell at IBM to the proposition of a "core business > architecture (CBA) for a service-oriented enterprise" published also > in the IBM Systems Journal. In proposing the CBA for use in various > business reasoning situations, this particular article formulated a > seven step approach for introducing a new service offering as a major > event in most large enterprises. Value network analysis was used in > three of these steps. > 3) It demonstrated how the value network "lens" can be represented > using the language of mathematics, with its modelling applications.
> I do have a question for you. Conventionally, value network analysis > (VNA) deems intangibles as not having a monetary value - otherwise it > becomes tangible. Your paper attempts to put a monetary value to > intangibles and relate that to the intangible assets concept using > links between relationship value, satisfaction indices and utility > functions (referring to other papers). These of course are highly > subjective but do enable you to develop expressions and impute values > for the variables. Presumably there would be no difficulty in > stripping out the valuation of intangibles and leaving us with > "simplified" version that deals only with tangibles.
> I would also add the observation that a key contribution of value > network applications is the insight that participants gain in > creating the value network diagram in the first place and developing > co-creatively the alternative models for study in the transformation > options that you describe.
> Regards... David Meggitt
> On May 28, 12:50 am, George Koutras <george.kout...@gmail.com> wrote:
> > Good evening,
> > Since I am a co-author on this paper then I would be eager to answer > > any questions that you may have.
> > Kind Regards,
> > George Koutras
> > On May 26, 7:35 pm, "John Maloney \(IM: jheuristic\)"
> > > From: Value-Networks@googlegroups.com > > > [mailto:Value-Networks@googlegroups.com] On Behalf Of Fran Kelly > > > Sent: Monday, May 26, 2008 9:13 AM > > > To: Value-Networks@googlegroups.com > > > Subject: RE:EstimatingValue
> > > Value in Service Systems: A Case Study of a Repair Service System - > > > Globalization of the world economy has led to an increased ability of > > > companies to outsource the planning, design, manufacturing, and distribution > > > functions of their products and services around the globe. It is leading the > > > deconstruction of formerly vertically organized companies and industries > > > into comprehensive service systems known as value networks. This empirical > > > case research shows the value they deliver, how they deliver it, and how > > > value can be discovered and increased in service systems. IBM Systems > > > Journal (2008)
