What are networks of values?
value networks represent social or technical sources that can use businesses to improve their operations. Today, the business environment has valuable networks because technology continues to increase knowledge or intangible companies. The networks are either external or internal, although both networks may be present in society. Companies often use these tools into a competitive advantage to increase market share or improve goods and services offered to consumers. The information obtained from these groups allows companies to receive performance feedback and change operations. Some groups - such as other businesses and government agencies - can help provide knowledge in terms of changes in the business environment. For example, competitors who are changing products or enter new markets will signal that other markets or market segments have the potential of profit. Government agencies will tend to send signals about changing currency or fiscal policy that can significantly affect how society undertakeKá.
Inner value networks are divisions or departments that make up society. Customer service, order fulfillment, accounting, production or human resources are among the networks that often occur inside the company. Knowledge and intangible benefits obtained from internal networks and communication ensure that all employees of the company add the value of the company. Owners and managers will often try to divide barriers that exist in value networks to help increase the flow of communication throughout the company. A division or department that does not pass information through the company can prevent other parts of society and eventually create a decline in the total V.ALue society.
Computer technology creates tangible and intangible benefits in value networks. The tangible benefits come from the device or software that the company uses with the network. Many companies create hardware SYStem unique for its operating environment, which gives them basic competences that are not easily created and used by another company. This internal value doubles when the company uses a software program or a system created by employees in the company. Although it can create a strong competence, it may have the disadvantage of connecting with external networks. External companies can use networks that have an operating system that is incompatible with other systems. This results in the disadvantage of using specialized hardware or network software.