The digital transformation of the construction industry offers opportunities to address its inherent complexity. Timber construction stands out as a sustainable alternative to traditional building methods, contributing to climate goals through carbon sequestration. However, the sector faces significant challenges, including fragmented processes, insufficient digital integration, and a lack of lifecycle-oriented approaches. This research presents a reference model that maps the entire timber value chain, from forest to city, to address these challenges. By fostering an understanding of existing processes, the model enables to navigate complexity, identify bottlenecks, and pursue lifecycle-oriented optimizations. Stakeholder workshops enrich process insights with practical experiential knowledge. Building on this foundation, a Business Intelligence tool, called Value Creation Digital Model (VCDM) was developed to support horizontal and vertical integration across stakeholders. While the VCDM is designed to show potential for optimizing regional value chains and to support circular construction, its adoption is limited by the slow pace of digitalization and data availability within the construction sector. Future scenarios envision the VCDM as a tool for planning, certification, and information dissemination, emphasizing the need for trust, participation, and standardized practices across the value chain.