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