Ecosystem's value network vs. traditional value chain

The value chain model was first proposed by Michael? Porter in 1985, mainly refers to the vertically integrated companies, emphasizing the competitive advantage of individual enterprises, is the product of the era of large enterprises at that time. Later, the concept of value system was put forward to extend the research perspective to different companies, which is essentially the same reason as the industrial chain, and is the product of further subdivision of the social division of labor.

Michael Porter in the "value chain" theory, the value chain in the economic activities of ubiquitous, upstream and downstream organizations between the existence of the industry value chain, the organization of the various sectors of the organization between the various business units of the existence of intra-organizational value chain, the value of each value activity on the value chain will have an impact on the value of the organization to be able to achieve the final.

For a long time, people have been accustomed to the existence of unidirectional value chains, until the emergence of the value network. Essentially, a value network is an ecological web of infinite possibilities through which more value is created or captured in collaboration.

The members of the value network realize each other as the main body, resources **** through, value **** creation, profit **** enjoy, and then realize the high level of development of a single organization and multiple organizations synergistic can not be achieved. (From "*** Life" P27)

The following is a comparison of the differences between value chains and value networks in five aspects from different perspectives.

1, the value chain is the product as the leader, the vertical value chain within and between enterprises, to achieve the best efficiency and profit maximization. Value network is ecological as the core, multiple economic sectors to form a mesh value connection, to achieve multiple economic sectors, multiple ecological efficiency is optimal, profit maximization.

2, the value chain focuses on supply, production links, the purpose is to reduce product costs, improve efficiency; while the value network subjective performance for the user how to maximize the benefits of the objective performance of the ecological creation of greater value, and so that the value of the network (including upstream and downstream, peripheral industries, etc.) to increase the number of more connections to the cooperative relationship.

3, the value chain focuses on upstream and downstream production links to improve efficiency; while the value network focuses on the entire network members *** with the improvement of efficiency.

4, the value chain is concerned with the circulation of tangible value, such as means of production; while the value network is concerned with the circulation of information in the network, through the knowledge of the *** enjoyment of network members to create value.

5, the value chain is only viewed as a supplier of supply and demand transactions, the relationship between enterprises and suppliers is antagonistic; while the value network is viewed as a supplier of the destiny of cooperation **** the same body.

6, the value chain is the user as a marketing object, through market means to promote their products, and carry out after-sales service users; and value network is the user as a part of the entire ecosystem, the purpose of marketing is to create more value for the ecology. For example: online map users that is the value of consumers, but also value creators. Customer service work, we tend to see customer service and complaints as costs, more inclined to one-way service, but do not know the buried demand and opportunities, compared to customer research, complaints contain a huge treasure. Users are not only consumers but also ecosystem participants and contributors.

In summary, a value chain is a vertical value chain based on products, upstream and downstream industries, and a value network is an ecosystem-based network of value connections.