From Value Chains to Value Networks

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Understanding value chains has been central to growth in our industry for 30 years. Dramatic changes in consumer behaviour, business innovation, demographics and economics mean value chains will no longer meet business goals as they once did. As a result, future success will increasingly require a shift from traditional, linear value chains towards more collaborative value networks.

More than ever, consumers are empowered. In business and society, we see networks springing up that are organised around consumers and their communities, and supported by the internet and the new business models it makes possible. Networks are non-linear: they offer many routes to consumer value. They respond rapidly to changing needs because they need less top-down control. They help build mass collaboration with multiple partners.

If we do not understand, and start to adopt this fundamentally different approach, the industry will struggle to create value and secure long term growth.



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