Modeling Value Creation with Enterprise Architecture

Firms may not succeed in business if strategies are not properly implemented in practice. Every firm needs to know, represent and master its value creation logic, not only to stay in business but also to keep growing. This paper is about focusing on an important topic in the field of strategic management and economics: value creation. We develop a value creation framework and then use the ArchiMate enterprise architecture modeling standard to model value creation, using a four step method. The output of this method is a new model, the value creation model, which represents value creation by a firm. We demonstrate the use of the method with an example case. Potential uses of the value creation model, including traceability, sensitivity analysis and a networked enterprise architecture, are discussed in detail.