Verna Alee on Value Networks

1. Turning Social NetworksInto Business Results 10. Juni 2010 1 © 1997-2010 Value Networks, LLC All rights reserved. Verna Allee Verna.Allee@valuenetworks.com

2. Our Company June 10, 2010 2 © 1997-2010 Value Networks, LLC All rights reserved. Next generation business intelligence and analytics Applications for (value) network business activity visualization, analysis, optimization Enterprise integration for analytics and predictive intelligence Expert guidance, training, services www.valuenetworks.com 50 California Street, Suite 1500 San Francisco, CA 94111 info@valuenetworks.com

3. Magic Words June 10, 2010 3 © 1997-2009 Value Networks, LLC All rights reserved. Collaboration Value Networks Web2.0 Productivity Innovation Social Media Profit Trust

4. June 10, 2010 4 Where Did the Organization Go? Project Teams Communities Networks Departments © 1997-2010 Value Networks, LLC All rights reserved.

5. Discovering Networks June 10, 2010 5 © 1997-2010 Value Networks, LLC All rights reserved.

6. Radial Org Chart 1924 W. H. Smith, Graphic Statistics in Management McGraw-Hill Book Company, New York, ed. First, 1924 June 10, 2010 6 © 1997-2010 Value Networks, LLC All rights reserved.

7. Formal Organization Social or Organizational Network Analysis Acknowledgement: Valdis Krebs June 10, 2010 7 © 1997-2010 Value Networks, LLC All rights reserved.

8. Informal Organization Shows Knowledge and Communication Flows Acknowledgement: Valdis Krebs June 10, 2010 8 © 1997-2010 Value Networks, LLC All rights reserved.

9. Still Have the Two Worlds Problem June 10, 2010 9 Processes and Technology (30-50% of Business Value) People and Networks (50-70% of Business Value) Human interactions and business transactions are two separate worlds. © 1997-2010 Value Networks, LLC All rights reserved.

10. Bringing the Two Worlds Together June 10, 2010 10 And – notsucceeding CollaborationPlatforms(Sharepoint) Social Network Platforms(LinkedIn) loose network activationwithbusiness focus Platforms Value Network visuals analyticsintelligence platform Structure(Processes) eachtrying to work withall the others actionablevalue modeling and prediction tight Supply Chain (IBM, Infosys) BP/BI Platforms(SAP) Enterprise Focus internal external © 1997-2010 Value Networks, LLC All rights reserved.

11. What is a Value Network? A value network is any set of roles and interactions that generates a specific business, economic, or social good. June 10, 2010 11 A human-centric, role-based, network view of any business activity. © 1997-2010 Value Networks, LLC All rights reserved.

12. Focus on Roles… June 10, 2010 12 © 1997-2009 Value Networks, LLC All rights reserved.

13. Formal (Tangible) Deliverables June 10, 2010 13 AgResearch Commercialization Can take up to twelve years from idea to market. © 1997-2010 Value Networks, LLC All rights reserved.

14. Informal (Intangible) Deliverables June 10, 2010 14 AgResearch Commercialization Intangibles keep the relationships alive. © 1997-2010 Value Networks, LLC All rights reserved.

15. Business Results

17. Systemic impact from priority one incidents

18. Predictive resource planning

19. Monitoring customer experience and impact© Verna Allee and ValueNetworks.com 2010 Creative Commons License (reuse permitted with acknowledgement)

21. Revealthe hidden network patterns.

22. Predict problems and breakdowns.

23. Improve process performance.© 1997-2010 Value Networks, LLC All rights reserved.

24. All interactions – Process and Human 0 0 0 Test estimate requester Chargeline assigner 0 IDS Technical Analyst 0 0 0 0 BCA Proposal Creator RO RFP Creator 0 0 0 Resource Owner 0 0 0 PIW Creator 0 0 0 CITAP Inputer - RO_IDS 0 0 0 0 0 IDS Proposal evaluator-acceptor 0 0 BCA cost policy reviewer 0 0 ITAR_EAR Analyst-Determiner IDS Cost Analyst 0 0 authorized management approver 0 0 0 0 0 Test estimate reasonableness assessor Functional estimate approver BCA SOW estimate and PoP validator 0 0 0 0 Expiration date assigner BCA work performer 0 0 0 Authorized management SOW approver(s) 0 0 0 0 0 0 0 0 0 IDS requirements researcher-author - SOW Initiator 0 0 0 0 0 BCA RFP Reviewer 0 IDS financial analyst Non-FTO_V estimate collector-checker-coordinator 0 0 Authorized management PIW approver 0 0 0 0 0 0 0 0 0 0 0 0 Integrator of test requirements 0 SOW Inputer - RO 0 0 BCA proposal implementer 0 0 0 0 BCA SOW final validator 0 0 0 0 0 0 0 0 Coordinator 0 0 Functional resource estimator 0 0 0 0 0 RO SOW Final Approver 0 0 0 0 0 0 0 Technical Designer-finalizer PO coordinator 0 0 0 Non-FTOV estimate collector-checker-coordinator 0 Job Number Assigner 0 0 0 0 BCA estimate integrator 0 0 Functional SME 0 0 0 CITAP Project Manager 0 BCA Price approver 0 0 0 FOTV-BCA PO info advisor 0 0 BCA Pricer 0 0 0 0 0 Test estimate collector-checker-documenter 0 0 0 0 0 0 0 Communication convener SOW technical evaluator-reviewer 0 PoP Adjuster Confidential Information – Do Not Distribute. Copyright © 2000-2008 ValueNetworks.com. All rights reserved. June 6, 2010 18 © 1997-2010 Value Networks, LLC All rights reserved.

25. Quantitative (process) interactions 0 0 0 0 0 0 Test estimate requester Chargeline assigner 0 IDS Technical Analyst 0 0 0 0 0 BCA Proposal Creator RO RFP Creator 0 0 0 0 Resource Owner 0 0 0 0 0 0 PIW Creator 0 0 CITAP Inputer - RO_IDS 0 0 0 0 0 IDS Proposal evaluator-acceptor 0 0 BCA cost policy reviewer 0 ITAR_EAR Analyst-Determiner IDS Cost Analyst 0 0 0 authorized management approver 0 0 0 0 Test estimate reasonableness assessor Functional estimate approver BCA SOW estimate and PoP validator 0 0 0 0 0 0 Expiration date assigner BCA work performer 0 0 Authorized management SOW approver(s) 0 0 0 0 0 0 0 0 0 0 0 0 IDS requirements researcher-author - SOW Initiator 0 0 BCA RFP Reviewer 0 IDS financial analyst Non-FTO_V estimate collector-checker-coordinator 0 0 0 0 Authorized management PIW approver 0 0 0 0 0 0 0 0 0 0 0 0 Integrator of test requirements 0 0 SOW Inputer - RO 0 0 BCA proposal implementer 0 0 BCA SOW final validator 0 0 Coordinator 0 0 0 0 Functional resource estimator 0 0 0 0 0 0 0 0 RO SOW Final Approver 0 0 0 0 0 0 Technical Designer-finalizer PO coordinator 0 0 0 0 Non-FTOV estimate collector-checker-coordinator 0 0 Job Number Assigner 0 0 0 0 BCA estimate integrator 0 0 Functional SME 0 0 CITAP Project Manager 0 0 BCA Price approver 0 0 FOTV-BCA PO info advisor 0 0 BCA Pricer 0 0 Test estimate collector-checker-documenter 0 0 0 0 Communication convener SOW technical evaluator-reviewer PoP Adjuster Confidential Information – Do Not Distribute. Copyright © 2000-2008 ValueNetworks.com. All rights reserved. June 6, 2010 19 © 1997-2010 Value Networks, LLC All rights reserved.

26. Qualitative (human) interactions Test estimate requester Chargeline assigner IDS Technical Analyst 0 0 BCA Proposal Creator RO RFP Creator 0 0 Resource Owner PIW Creator 0 0 0 0 0 CITAP Inputer - RO_IDS IDS Proposal evaluator-acceptor 0 0 BCA cost policy reviewer 0 0 0 ITAR_EAR Analyst-Determiner IDS Cost Analyst authorized management approver 0 0 0 0 0 0 Test estimate reasonableness assessor Functional estimate approver BCA SOW estimate and PoP validator 0 0 Expiration date assigner BCA work performer 0 0 0 0 0 0 Authorized management SOW approver(s) 0 0 0 0 0 0 IDS requirements researcher-author - SOW Initiator 0 0 0 0 0 0 0 0 BCA RFP Reviewer IDS financial analyst Non-FTO_V estimate collector-checker-coordinator Authorized management PIW approver 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Integrator of test requirements SOW Inputer - RO 0 0 0 BCA proposal implementer 0 0 0 0 0 0 0 BCA SOW final validator 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Coordinator Functional resource estimator 0 0 RO SOW Final Approver 0 0 0 0 0 0 0 0 0 Technical Designer-finalizer PO coordinator 0 0 Non-FTOV estimate collector-checker-coordinator Job Number Assigner 0 0 0 0 BCA estimate integrator 0 0 Functional SME 0 0 0 0 CITAP Project Manager BCA Price approver 0 0 0 0 FOTV-BCA PO info advisor 0 0 BCA Pricer 0 0 0 0 0 0 0 0 Test estimate collector-checker-documenter 0 0 0 0 0 0 0 0 0 0 Communication convener SOW technical evaluator-reviewer 0 0 PoP Adjuster Confidential Information – Do Not Distribute. Copyright © 2000-2008 ValueNetworks.com. All rights reserved. June 6, 2010 20 © 1997-2010 Value Networks, LLC All rights reserved.

27. Predictive Intelligence Value Network Insights™ RecommendedEscalation Each hour wasted in unproductive patterns = COSTS. Actual Escalation in Workflow System © 1997-2010 Value Networks, LLC All rights reserved.

29. Rapid and more effective organizational redesign

30. Greater flexibility in business processes Value Networks are recognized by ITIL and eTom. © 1997-2010 Value Networks, LLC All rights reserved.

31. Value Networks at Boeing Dennis O’DonoghueSr. VP Test & Evaluation The Boeing Company is using Value Network Analysis with almost 1/6th of the workforce as a Lean+ business modeling approach. © 1997-2010 Value Networks, LLC All rights reserved.

33. Foster business collaboration and open innovation

34. Activate and monitor regional networks

35. Better deploy and activate network resourcesDevelopment Agencies Global Activist Networks Healthcare & Innovation Networks © 1997-2010 Value Networks, LLC All rights reserved.

36. Innovation Network Phases © Verna Allee and ValueNetworks.com 2010 Creative Commons License (reuse permitted with acknowledgement) Anticipated Intellectual Capital Creation Community Building Research Archetype Market Validation Archetype Commercialization

37. An Expanded Performance Capability More accurately depict business performance: Identify how the work reallyhappens. Design processes that work better. Monitor human and business performance. Predict when work processes are at risk Reveal the hidden value of the network © 1997-2010 Value Networks, LLC All rights reserved.

38. The Challenges Role based resourcing… How we think about value… People and processes inhabit different worlds… Process engineering drives out variation… Performance indicators don’t monitor systems… Business activity must be auditable… April 13, 2009 27 © 1997-2010 Value Networks, LLC All rights reserved.

39. The Hope… Increasing Prosperity June 10, 2010 28 The value network perspective helps generate the true wealth that makes life worth living. info@valuenetworks.com © 1997-2010 Value Networks, LLC All rights reserved.