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CONCEPT

Value Network

The ecosystem of suppliers, customers, complementors, and competitors that defines what is valued and how value is captured within a competitive context — and whose shift to a new configuration is the deeper event in every major disruption.
The value network is the entire ecosystem — suppliers, partners, customers, complementors — that defines what is valued and how value is captured within a particular market context. The value network determines the metrics by which performance is measured, the cost structures that are viable, and the organizational capabilities that command a premium. When a disruption occurs, the value network does not merely adjust. It shifts to a new configuration where different participants occupy different positions and different capabilities command the premium. Applied to AI, the framework reveals that the pre-AI value network valued execution, and the post-AI value network values judgment — a shift that affects every participant in the system simultaneously.
Value Network
Value Network

In The You On AI Field Guide

The pre-AI value network in software valued execution. The ability to write code was the foundational capability. Business strategy, product design, and user research were important, but as inputs to execution. The person who could translate a

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