Summary of the book
The e3value method is an easy-to-use graphical approach to explore, understand, and analyze business ecosystems and their corresponding business models. A business ecosystem is a network of enterprises, governments, end-users and other relevant institutions. These parties exchange things of economic value with each other, which can tangible products, services and even experiences. Once stakeholders agree on a business model, various analyses can be done. For example, the profitability of all the actors can be evaluated, possibilities to commit a fraud can be found, and the business model can be used as point of departure for a cross-organizational IT architecture design.
The book provides a tutorial of the e3value method and is a useful reference if you construct models using the software tool that we provide. There are tools for editing business models, for financial analysis and for generation and analysis of potential frauds. The book is easy to read and has about 100 pages.
Excerpt of the book
“This is book treats the syntax and semantics of e3value and explains the various analyses that can be done with the e3value software tools. E3value is a language to build and analyze business models of value networks. Software tools to edit and analyze e3value models are available from our website www.thevalueengineers.nl.
Network organizations have existed as long as businesses have existed. Every business, no matter what technology it uses, interacts with a network of suppliers, customers, partners, sponsors, regulators, malicious actors, competitors, and other actors. For example, Ikea is part of a value network of designers, manufacturers, suppliers of raw materials, logistics companies, and others who cooperate to deliver furniture to customers. Without its value network, Ikea has nothing to offer. Hence, we view its offer of furniture as an offering made by its entire value network.
E3value is a language and set of analysis techniques to represent and analyze value networks. A value model is a representation of
a value network in e3value. A value model does not represent processes but economic exchanges in which two or more parties exchange something of value for them. It does not represent when and how these exchanges take place. It represents
• who exchanges what value objects with whom;
• which customer needs are answered by this, and
• what revenue and expenses are generated by this for each actor.
A value model represents a value network during a period of time, called the contract period. The exchanges among actors represented in the value model are agreements about what objects of economic value the actors will exchange during the contract period. e3value represents just enough to be able to make revenue estimations and net present value estimates for actors in the network. To do this you annotate a model with estimates of market size, number of customer needs, and the monetary value of object exchanges among actors. Our supporting tools can then compute assessment of commercial viability and well-being for a contract period and can do net present value flow estimations for a sequence of contract periods.”