e3value user manual, first release

1.4 When to use e3value

We use e3value to understand existing value networks and to design new ones.

Existing value networks may contain inefficiencies and vulnerabilities. For example you may know who your suppliers are, but not who the suppliers of your suppliers are, which creates a vulnerability. You may engage in economic exchanges with other parties in a way that is not optimal for your current value proposition. And you may coordinate your work with others, or fail to coordinate your work with others, in a way that destroys potential value. Modeling an existing value network allows you to identify and fix these inefficiencies.

To realize a new business idea, you need to design a new value network. You can represent the design of a new value network in e3value and simulate various market scenarios with our supporting software tools. This allows you to quickly identify strong and weak points of an innovation without losing money or hurting others.

The TVE business model template contains more information about what a network-aware business model looks like1 The TEAM method for ecosystem modeling provides guidelines for modeling business ecosystems in general and value networks in particular.2 We will explain these approaches in a later book.