Section Co-Authored with Verna Allee, ValueNet Works
Living systems require exchanges with the environment in order to continually renew themselves. These exchanges are of two basic types: matter and energy and (or) cognitive exchanges that express the intelligence of the system.
From a living systems perspective, the molecular level of business economic activity also is the exchange. In traditional business thinking we have thought of economic exchanges only in terms of goods, services, and revenue – the “value chain” transactions. One can think of resources and money as roughly equivalent to the living systems exchanges of energy and matter in living systems.
In addition, as living networks, communities, companies and business webs engage in more than material exchanges – they also engage in cognitive exchanges. Sustainable business success depends on exchanges of information, knowledge sharing, and open cognitive pathways that allow good decision making. These exchanges not only have value, but are essential for the success of the enterprise, so they must also be considered as economic exchanges.
The Identity Ecosystem, as a human techno-societal system, operates as an ecosystem that has many roles. Between these roles value flows that is both tangible and intangible (things that are recognized but not easily quantified) deliverables.
The value network modeling approach would model this ecosystem as a value network of roles and interactions that are involved in specific system-level outcomes. Roles can be played by organizations or individuals. In value network modeling, specific deliverables between roles are defined as a way of describing the creation and dissemination of value, and to understand how the innovative exploitation of technology and knowledge take place. When the interaction between the different players works well – new, valuable knowledge is generated which is quickly put to practical use. This creates the foundation for innovations and attracts investments.
Any Value Network ecosystem analysis typically addresses three levels of assessment:
- The roles, products, services and knowledge – including data flows – that work within the value network.
- The enabling technologies that support role execution and deliverables.
- The conditions, enablers, and constraints that influence the ecosystem
It is a proven method for mapping diverse industry network ecosystems with decades of practice and application. It provides a visual model and analytical structure as foundation for defining the emerging identity ecosystem and exploring possible scenarios and policy models. It is a dynamic approach to business modeling that scales from shop floor to industry ecosystems.Before sharing how I think this process can be used as part of speeding up the time it takes to make the NSTIC vision real, I want to share an example from where I applied this process to build shared understanding between two very different professions developing a map of the traditional industry and look at how the whole system shifted when the future was envisioned together.