Social Network Analysis for CI

Jim RichardsonTrident Systems

August J. JacksonVerizon Business

SNA Maps Relationships for Predictive Analysis

A SOCIAL NETWORK is a map of the relationshipsbetween individuals, organizations and other relevantNODES indicating the ways in which they are connectedby financial, social or professional LINKS.

SOCIAL NETWORK ANALYSIS applies visual andstatistical analysis of mapped social networks toevaluate the structure and nature of the system.

SOCIAL NETWORK ANALYSIS delivers value toCompetitive Intelligence, though modification ofconcepts from fields of sociology and knowledgemanagement is needed.

All Networks Are Collections of Nodes and Links

Nodes

Links

Traditional SNA SNA for CI

IPOIPO

Only “cognitive agents”can be nodes:PeopleOrganizations (maybe)

Nodes can includetechnologies,products,competencies,markets, etc

SNA for CI Requires Defined Relationships

SupplierDistributorJoint VentureEquity Relationships

FinancingR&D PartnershipMarketing PartnershipPending M&A

Executive EmploymentBoard ServiceMajor Equity OwnershipEducation

Membership

FamilialDirect ProfessionalCo-authors, Co-PresentersIdentifiable direct social connections

Defining relevant magnitudes, frequencies or other attributes of linkages is important.

Traditional SNA SNA for CI

Tolerant of subjectiveinter-personal linkages

Dependent uponformalizedrelationships

We’re best

friends.

I can’t stand

that guy.

CEO

FormerCoworkers

Traditional SNA SNA for CI

Value is based onstatistical analysis oflinkages to understandnature of interactionsamong groups ofpeople

Value is based onderiving business“so what” fromlinkages to drivedecisions

CEO

CEO

Acquired

Acquired

BoardMember

Distributor

CEO

BoardMember

IPTVCompetency

Competency

Competency

Product

ServiceProvider

WHAT COULD COME OF THIS?

“So What?” of SNA Concepts: Connectedness

• An individual with a broad professional network--Gladwell’s “connector”

• An individual researcher connected to multiple patents

“So What?” of SNA Concepts: Reachability

• How strong is a firm’s distribution network?

• An individual’s professional network?

3

2

1

“So What?” of SNA Concepts: Betweenness

• An industry bottleneck

• An individual who connects entrepreneurs withfinancing

“So What?” of SNA Concepts: Density

• A high degree of “coopetition”

• Employees regularly move among firms

High density

low density

Mapping Social and Economic Capital in the UK

Burt, R.S. (1979) ‘A Structural Theory of Interlocking CorporateDirectorates’, Social Networks, 1.

• Hypothesis: interlocking board memberships were amechanism to neutralize potential threats from suppliers,distributors, etc. to reduce constraints on the firm whendealing with monopoly or oligopoly firms

• Survey of interlocking board memberships in 250 largestUK companies in late 1970s

• Highlighted the importance and attraction of interlockingrelationships with sources of finance

Traditional SNA SNA for CI

Collection method issurveys, record ofphone or e-mailcommunications

Collection is basedprimarily onsecondary research

Rudimentary Social Network Generated UsingText Analysis

Steps to Implementing SNA

• Have a thorough understanding of your analytical goal

• Simplify to focus on most relevant and obtainable data

• Clearly identify relevant notes and relationships

• Develop a data schema that reflects relevant attributes

• Create a data collection plan– Identify surrogate data for that you need but cannot capture

directly

Steps to Implementing SNA

• Determine the technical methods for– Data collection– Data storage– Visualization– Statistical analysis

• Design visualization criteria which will convey theappropriate conclusions based on analytical goals

• Engage customers of analysis in interim review of effortsto maximize comprehension

Contact Details

V. Jim Richardsonjim.richardson@tridsys.com

August J. Jacksonaugust@augustjackson.net