Gartner Research

Inside Out: Creating Value Networks From Supply Chains

Published: 01 October 2008

ID: G00162698

Analyst(s): Mark McDonald , Andy Rowsell-Jones


CIOs are helping to turn enterprises inside out using value networks. Built upon the supply chain, with the enterprise at its hub, a value network integrates suppliers, intermediaries and complementary companies in order to better serve customers.

Table Of Contents


Executive summary

  • Value networks start with a supply chain
  • Value networks require new combinations of information, process and behavior
  • Value networks address complex business challenges

Value networks start with a supply chain

  • Like supply chains, value networks bind processes within the enterprise
  • Value networks bind enterprises together
  • The anatomy of a value network
  • Forge the supply chain into a value network and create new opportunities
  • Every enterprise has a supply chain and foundation for a value network
  • Make the value network within your supply chains explicit

Value networks require new combinations of information, process and behavior

  • Supply chains are a source of much-needed innovation
  • Information fuels value networks
  • Information creates results
  • Design information for the network
  • Transparency creates coordination
  • Loosely couple processes to increase reliability
  • The process design challenge
  • Behavior is the source of adaptability
  • A value network is a complex system

Value networks address complex business challenges

  • Identify the opportunities for value network innovations
  • Transport for London—Coordinating a network involving millions
  • Obama for America—Using networks to redefine participatory politics
  • Determine your readiness to form or participate in a value network
  • A value network extends the enterprise by turning it inside out

Appendix: Case Studies, Frequently asked questions

  • Case Study: BNSF Railway—Delivering performance across a network of networks using information and processes
  • Case Study: Chiquita Brands—Synchronizing the supply chain at speed
  • Case Study: Guardian News and Media—Transforming from a direct to a digital value network
  • Case Study: Hong Kong Housing Authority—Getting results by changing behavior
  • Case Study: Kadaster (Dutch Land Registry)—Using the supply chain to focus on the customer
  • Case Study: The Mahindra Group—Closing the supply chain loop
  • Case Study: United Stationers—Extending the value network for growth

Appendix: Frequently asked questions

  • Answers to frequently asked questions about value networks

Further Reading

  • Gartner EXP reports
  • Core research
  • Books

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