The Power of the Value Net

So the basic idea of a value chain for e-knowledge must be expanded to the notion of a value net. Some refer to this as a value web, a value stream, or a value constellation. This value net will be non-linear and orthogonal. It will accommodate the many new sources of value that will result from the new services required to create e-knowledge aggregations, repositories, and marketplaces. The value net will deconstruct and reconstruct the basic value propositions and cost/price structures for e-knowledge of all kinds.

To a great extent, much e-content will become a commodity, and its unit price will drop—particularly where it is already purposed for modularity and interoperability. We know from experience that existing Internet-based accessibility to knowledge resources has reduced unit prices, slashing the profitability of content providers serving their traditional customers. Finding new markets for their e-knowledge and creating new, value-added knowledge products is a critical challenge for traditional knowledge providers confronting the e-Knowledge Economy.

Reaching, Attracting and Serving New Markets. The communication capacity of the Internet to reach new markets is not enough to assure success. In order to truly attract new markets (and hold onto old markets) e-knowledge providers must add genuine value to e-knowledge resources. They must create versions of knowledge resources that are especially suited to online media and create new, compelling experiences for the user. Online versions of news media demonstrate this principle, as they are tailored for the online environment and create new experiences that enable the customer to engage news coverage more effectively.

In networks we find self reinforced, virtuous cycles. Each additional member increases the network’s value, which in turn attracts new members, which in turn increases value, in a spiral of benefits.

Kevin Kelly, 1997