e3value user guide

6.2 Net value flow analysis of an actor

To analyze a market scenario, we start from the needs in the scenario and trace these to their boundary elements. To do this, we quantify the model and then let the e3value tool compute net value flow sheets of the scenario for each actor. A net value flow sheet is a spreadsheet that lists the inflows and outflows of an actor and sums them into the net value flow of the actor. For example, for the scenario in figure 6.2 the e3value tool can compute the net value flow sheets shown in tables 6.1 and 6.2.

Figure 6.2:Traveling from Amsterdam to Paris.

Table 6.1:Net value flow sheet of the Railway company of figure 6.2.
Expenses
Total for actor







Interface

Port

Transfers

Transfer occurrences

Valuation

Total value transferred

Net value flow








Meal, Money

5

50








out: Meal

all

5

0

0

in: Money

all

5

10

50

Money, train trip

5

1K

in: Money

all

5

200

1 K

out: Train trip

all

5

0

0








-70 K















-68.95 K








Table 6.2:Net value flow sheet of the Traveler of figure 6.2.
Total for actor







Interface

Port

Transfers

Transfer occurrences

Valuation

Total value transferred

Net value flow








Train trip, Meal, Money, Money

5

-1050

in: Train trip

all

5

0

0

in: Meal

all

5

0

0

out: Money

all

5

10

-50

out: Money

all

5

200

-1K















-1050








In a net value flow sheet we identify an interface by its unique name or by the value objects entering and leaving the interface, if that is unique for the actor.

The sheet shows the number of occurrences of the interface in the market scenario. For each port of the interface, the sheet lists the type of value object and identifies the transfers being counted. In case of transaction choice or merge, more than one transfer is connected to a port. The table then shows for each transfer the number of occurrences of the transfer in this market scenario, the valuation of the transfer, and the total value of the occurrences being counted.

Next, the net value passing through each interface is summed, expenses are subtracted, and this gives the net value flow for each actor. In table 6.1, the Railway company has a net value flow of f-68 950. This shows that with fixed expenses of f70K and only one traveler, the Railway company cannot sustain itself. With a market segment of sufficient size (section 6.3), Railwaycompanies can generate positive revenue.

The Traveler ends up with a total value of f-1 050 because we only show the cash flows in the sheet. The traveler spends this amount of money on train trips and so the traveler cash flow is negative. Assuming that the value of a train trip and food is higher than the f210 that the traveler pays for it, the net value flow for the traveler is positive. We will include this valuation in the example of section 6.3.