After analyzing human-needs, we all understand where humans incentive comes from. However, we do not work alone, but with many people. Each person in a group of people has their own needs to motivate their action, actions are linked together to form a chain of activities, creating things, images, it called a value chain. For example, a project's value chain includes management design, implementation, quality assurance, and delivery to users. Each participant in the project provides value so that the product is fully built, if one of those values is lost, the product will not deliver well, or sometimes cannot be made.
Similar to the value chain model of a project, company or organization, an industry is run on linkages, each component of the value chain uses its actions to give a value and receive one in return. To determine the value chain of an industry, we list all the stakeholders involved and find out what they are, what they are doing, their motivations, what values they offer; each participant will associate with one or more other participants by value awarded. After that, we connect all the participants and create a graph to have an overview of the industry.
Each node is a participant in the industry, the link between the two nodes is the value they give to each other, the stakeholders will link together and form a big picture for that market.
To make it easier to understand, we have looked at an example together. Talking about Credit, we first come to the definition: Credit is the customer's ability to obtain the goods or services prior to payment, based on the belief that the payment will be made in the future. After that, we list all stakeholders, who are the lenders, who the borrowers are, which channels for these two entities to make transactions,... Each of the above units will be a button on the chart. For the simplest example, we have the bank, the consumer borrower and a third party guaranteeing the transaction. The link between nodes is described as follows: Borrowers get a timely amount of money to fulfill their own needs, the bank receives an additional interest in addition to the loan amount; the third party will help borrowers save time by making loan applications faster, and assist the lender to claim money when it is due. Likewise, we will connect all the players in the credit market, and draw a general picture of the market.
We can see whether there is an implicit relationship between nodes, if not then why no one has solved that problem. Usually, this is how to form an idea. We have understood the motivations of a person and an organization to make things happen, and how ideas are formed. Applying to domain research, we can broaden the scope of knowledge about that industry, seek new opportunities in the industry, see and find ways to solve problems in the market. At a higher level, understanding where the idea comes from and the dynamics of the society, we will easily empathize and understand with the founders and users, thereby we can make decisions more quickly correctly during designing products.
