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 relationships between individuals, organizations and other relevant NODES indicating the ways in which they are connected by financial, social or professional LINKS.

SOCIAL NETWORK ANALYSIS applies visual and statistical analysis of mapped social networks to evaluate the structure and nature of the system.

SOCIAL NETWORK ANALYSIS delivers value to Competitive Intelligence, though modification of concepts from fields of sociology and knowledge management 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 include technologies, 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 subjective inter-personal linkages

Dependent upon formalized relationships

We’re best

friends.

I can’t stand

that guy.

CEO

Former Coworkers

Traditional SNA SNA for CI

Value is based on statistical analysis of linkages to understand nature of interactions among groups of people

Value is based on deriving business “so what” from linkages to drive decisions

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 with financing

“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 Corporate Directorates’, Social Networks, 1.

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

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

• Highlighted the importance and attraction of interlocking relationships with sources of finance

Traditional SNA SNA for CI

Collection method is surveys, record of phone or e-mail communications

Collection is based primarily on secondary research

Rudimentary Social Network Generated Using Text 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 the appropriate conclusions based on analytical goals

• Engage customers of analysis in interim review of efforts to maximize comprehension

Contact Details

V. Jim Richardsonjim.richardson@tridsys.com

August J. Jacksonaugust@augustjackson.net