Value Creation Analysis Model
Value Creation Analysis Model is primarily an expanded Asset Management and Cost/Benefit Analysis. It is useful in determining how each participant is adding value to the network. The concept has been primarily derived from the principles of value-added accounting and value chain analysis. The original theory contends that at every point along the value chain one should be adding value to the product or service. In value network terms, this means that when a Role or Participant receives a value input they should find ways to use that input to provide value outputs in the form of products and services. Thus, Value Creation Analysis can be done only after the completion of the value network map and after an initial Exchange Analysis.