Value network recipe design principles
This is just a starter. More to come.
Value networks are composed of processes that produce use and exchange value, and exchanges that exchange value between processes. The form of the network is an alternation between processes and exchanges:
Value in the Value Network software is represented by resources. So one process produces resources as an output, and another process consumes some of the same resources as an input. In between, an exchange takes place from the people who contributed to the first process and the people who contributed to the second process.
For the most part, the Plan level will be created automatically from the recipes at the Type level.
At the Type level, a recipe is composed of
- Resource Types,
- Process Types,
- input (e.g. consumes, uses) and
- output (produces) relationships between Resource Types and Process Types, and
- relationships between Agents and Resource Types (sources).
Income distribution will follow the network backwards, from the process that created the resources that resulted in the income, through inputs to that process, to the processes that produced the input resources, to the sources of resources (for example, individual time contributions).
Many of the rules of thumb below have to do with distributing the income correctly.
Rules of thumb
- If you have an input to a Process Type, you will need to specify either a Process Type that creates the input Resource Type, or a source: an Agent who provides the Resource Type.
- The Process Type for creating an input Resource Type can be created in the same recipe as the Process Type that uses the input, or it can be created in a separate recipe that starts with the input Resource Type. The result is the same.
- If an input Resource Type already has a recipe, it will be displayed below the input.
- A source will usually be either a supplier (a person, a company or another network) that the network purchases materials from, or a person who provides labor time.
- A source ends the recipe in one network, although it may extend farther in another network.
- As with recipes for inputs, source relationships may have already been created. If so, they will be automatically displayed when you add an input.
- Don't try to put exchanges (e.g. purchases) into the recipe. They will be created automatically by the system by the input and output and source relationships.
- [Note: exchanges do not exist in the software prototype yet, but they will soon be documented in a separate page, and then added to the software.]
- If a resource is created in the network (for example, a material component), you probably don't want to add a person who works on creating the resource as a source. Instead, add a Process Type that creates the resource, and add an input of some type of work, and add the person as a source of that type of work.
- Why: If you add the person as a source, then the person would need to log a material contribution (of the resource that was created) instead of a time contribution. All of SENSORICA's value equation modulators are focused on time contributions, not material contributions. If the person also logs a time contribution, it will not be related to the process that created the material component, because there would be no process.
- And then if somebody else also worked on creating the resource, would they also log a material contribution? If so, both of them would need to log a part of the resource that was created, or you would end up with duplicate resources. Or if the second person logs a time contribution, what process and thus what resource did they contribute to? There would be no process. Income distribution would not find them.