Cognizant 20-20 Insights

Social Network Analysis: Bringing Visibility to Your Connections

Executive Summary
In the long history of humankind those who learned to collaborate and improvise most effectively have prevailed. Charles Darwin1
Our social networks consist of people we interact with on a day-to-day basis, online and/or offline. We often take this group of people for granted and dont make the effort to understand them fully. And in the world of online-only relationships, such issues are compounded, often leading to reduced engagement or, worse, miscommunication. In a world which has become full of online social connections (thanks to Facebook, Twitter, etc.), these cyber-enabled networks play a significant role in our lives and compel us to redefine our conceptions of communication and engagement. Such reevaluations require increased insight into the very nature of these networks. A by-product of psychology, social network analysis (SNA) offers a mechanism to help organizations better understand these relationships and the strength of individuals network connections. It provides an effective way to analyze and understand the complex networks of individuals, groups, advocates and detractors by assessing interactions in terms of strength, frequency and other relevant factors. In this white paper, we will bring explore SNA and how it is used to make the invisible visible for building brand awareness and addressing other important business concerns.

A Look Back
The term social networking was coined in the 1950s by professor J. A. Barnes while he studied social ties in a Norwegian fishing village.2 In this study, he concluded that the intricacies of social life can be envisioned as a set of points that can be joined to form a network of relations. Since then, scientists and mathematicians have developed this idea further as they have worked to understand how people interact and form networks. They have translated such concepts into mathematical models that enable the measurement and close study of social networks.

Social Network Analysis

As with any systematic evaluation, conducting an effective social network analysis comprises four stages:

Defining objectives. Data gathering. Data visualization. Results analysis and insights.

Defining Objectives: An analysis lacks meaning until it has a stated objective. We need to clearly define why we seek to understand social networks. Within a business context, some possible objectives include the following:

Better targeting and messaging. Identification of brand advocates. Impact of competition on the network.

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However, there is much more that can be done with the analysis. Some applications of the analysis are discussed later in this paper. Data Gathering: The data required to undertake any analysis is often bought from third-party vendors, but in the case of this analysis there are no vendors that collect social network data specific to brands or organizations. Thus, the data has to be extracted. The amount of data that can be collected is voluminous, so it is important to capture the right data. There are two ways to capture information about the relationships within a defined social network.

A Simple Network
Friend 6 Friend 1

Friend 5

Self

Friend 2 Friend 4
Figure 1

MR Surveys: A questionnaire is designed with the stated objective in mind and is then presented to the panel which should consist of individuals and teams in the network. The questions should focus on identifying the relationships and information flows among the networks elements. A few examples of plausible questions are:

Friend 3

(the individual or entity) and various vertices (the individuals network) that do not connect. (See Figure 1.) Key benefits of such networks include:

> > > >

Please share the names of five people whom you know who are aware of the brand ABC. How are you connected with them? How did they get to know about the brand? How do you discuss the brand?

> >

Awareness information: To assess how aware is the network about the brand. Influence: To understand the immediate reach the brand has on the network.

However, the biggest drawbacks of going the market research route is its limited reach and high associated costs.

Web Crawlers: These are computer programs that browse the Web in an organized and automated manner. There is a plethora of Web crawlers available that can either be licensed or created to suit an organizations needs. Utilizing Web crawlers eliminates the need for expensive market research while extracting a wide swath of information. In some situations, however, privacy policies and regulations force organizations to employ both methods.

Complex: These are scale-free networks where the pattern of connections between the nodes (building elements of a network) are neither purely random nor purely organized. Here the entities in the network can be connected to each other. (See Figure 2.)

A Complex Network
Friend 6 Friend 1

Data Visualization Now that all the data has been acquired, why do we need to visualize the network? A simple answer is that visualization will heighten our understanding of such a social network. To best connect the elements and aid visualization, organizations must understand the possible types of connections:3,4

Group 2

Self

Friend 2 Friend 4
Figure 2

Group 1

Simple: This is the study from the standpoint of an individual. Here there is only one center

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A Complete Network
Hosp 1 Doc 1 Doc 2

how this knowledge can be leveraged to guide marketing decisions. Keyword Connectivity Analysis Nodes of a network need not comprise only people but can include anything (e.g., technology, keywords, etc.). The beauty of network analysis is that it can be applied to any network with suitable modifications. In a keyword analysis, first a network mapping is created to understand how the various keywords are linked (based on their associated connotations) to a brand. Based on this mapping, various messages can be created to suit the needs. Key Opinion Leaders Identification If the information flow in a network is understood, questions can be raised, such as who would be the best person to influence; who can be easily identified, etc. A solid understanding of network connections, interests and engagement levels allows organizations to identify central nodes of influence that can be leveraged as key opinion leaders (KOLs). Communication and engagement can be directed toward KOLs and the viral power of their connections will allow messages to move to the intended audience. Competitive Intelligence Any relevant information that can be derived about a competitor is important. In todays world where there is an abundance of freely available public information, insights can be derived to identify what the competition is doing. For example, if the analysis is intended to identify various positions which an organization has created for a particular brand (Chief Technical Officer, etc.), this can provide an idea of the organizations plans for that brand. Platforms such as LinkedIn can be used to ascertain this. This data can then be consumed with other secondary research information such as annual reports, etc. to understand the intent of the organization or brand. Measuring Social Capital for a Brand The combination of a networks strength along with the network members engagement and satisfaction are the key elements that contribute to a brands social capital. A small network, even if it consists of highly engaged and satisfied members, does not carry the viral strength to generate much social capital for a brand. By the same token, a large network that is relatively apathetic about a

Patient
Friend 1

Friend 2
Figure 3

Web MD

The benefits of such networks include:

> > >

Individual satisfaction and network-level performance. Identification of opinion leaders and influencers. Success of community for the brand.

There are many third-party freeware tools that can be used for data visualization. An exhaustive list of these can be found here on Wikipedia. An example of data visualization for a complete network is illustrated in Figure 3. This patientcentric flow of networked healthcare A large network information can be utilized to that is relatively understand how marketing campaigns on consumer sites can be leveraged apathetic about to influence targeted prescribers. Results Analysis and Insights

a brand will also not contribute to the social capital of the brand.

SNA examines interpersonal networks and value exchanges. Here, we gauge and use certain attributes to better understand the potential of marketing to a network and to gauge ROI. Some of the attributes include:

Strength of relationships. Information capacity of the network. Rate of flow or traffic across the network. Distance between network points. Probabilities of passing on information.

Practical Applications
The next section explores business applications that exploit insights gathered via SNA and

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brand will also not contribute to the social capital of the brand. By understanding the followers and those connected to these followers, organizations can deduce how consumers feel about the brand and how their interactions can be leveraged to maximize the brands social capital. Social Network ROI The ROI of a social network is fundamentally tied to the cost of forming its requisite social capital. Before computing the ROI, organizations must assess numerous parameters such as network relevance, brand engagement, network engagement, etc. and then allocate a weight to each parameter to compute a score. This score can be used to compute potential revenue

generated, which in turn can be used to calculate the ROI.

Conclusion
Knowledge has always been gained through networks, but in the past there was but one link to these insights. In todays fast-paced global business environment, these links have increased as the number of informal networks has exploded. As a result, it becomes imperative to demystify an individuals network/s to gain substantial benefits. Social network analysis provides a means to explore and understand existing networks and at the same time help organizations evaluate and derive value from existing and emerging networks.

CASE STUDY: Applying Social Network Analysis >>

The following hypothetical scenario is designed to provide a taste of social network analysis.

Situation: A large consumer brand wishes to increase sales and enhance its brand image. The brand wants to use social media as a channel in its consumer marketing plan. To successfully implement and manage a social media campaign, it wants to first identify key opinion leaders and quantify network size to estimate reach and impact of the social campaigns. This information will allow the brand to engage with leaders and their network, which will generate positive buzz in the market. Challenge(s): With a consumer base that runs in the millions, the brand needs to determine the most efficient way to make sure it has current and accurate customer information. While the company has information linking sales to demographics and a consumer VIP program, very little information is known about what drives consumers to purchase or how the brands products are perceived in the market. Approach: To meet these objectives, the company did the following: It started by collecting information about customers who like the brand and have been engaged on the brand page of its social Web presence (Facebook). Based on their level of engagement, network reach, demographics and product satisfaction, a survey was launched to better understand unmet customer requirements, needs and perceptions. The survey focused on collecting the following information:

> > > > > >

Brands and competitive products they have used. Time associated with the brand. Last use of the brand. Primary medium of shopping/contact. Main points of satisfaction around products. How they shop for other brands.

Later a process was developed to segment the network. This allowed for the addition of various weights to the aforementioned parameters and helped to determine the proximity of the customer to the brand in the network. The proximity also governed the advocacy of the customer to the brand. This approach was further used on an ongoing basis to evaluate if a key opinion leader had moved down the pecking order. Once a deeper level of understanding was acquired around key opinion leaders, the brand was able to quantify the impact that key opinion leaders had on the brands sales.

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Footnotes
1 2 3 4

http://www.brainyquote.com/quotes/quotes/c/charlesdar393305.html http://www.bioteams.com/2006/03/28/social_network_analysis.html Steve Borgatti, Network Data Collection, (2010), http://www.analytictech.com/networks/topics.htm. Social Network Analysis, Steve Ebener, http://www.paho.org/CDMEDIA/KMC-SNA/training-sna.htm.

References
Rob Cross, Stephen P. Borgatti, Andrew Parker, Making Invisible Work Visible: Using Social Network Analysis to Support Strategic Collaboration, California Management Review (2002). Steve Borgatti, Network Data Collection (2010), http://www.analytictech.com/mgt780/slides/survey. pdf. Kenneth K.S. Chung, Liaquat Hossain, Joseph Davis, Exploring Sociocentric and Egocentric Approaches for Social Network Analysis, University of Sydney (2006). Nora Dudwick, Kathleen Kuehnast, Veronica Nyhan Jones, Michael Woolcock, Analyzing Social Capital in Context, World Bank Institute (2006). LNX Research, Finding Key Opinion Leaders Using Social Network Analysis (2007). Social Network Analysis, Steeve Ebener, http://www.paho.org/CDMEDIA/KMC-SNA/training-sna.htm. Steve Borgattis educational Website, http://www.analytictech.com/networks/topics.htm. An intro to SNA, http://www.bioteams.com/2006/03/28/social_network_analysis.html.

About the Authors

Udit Rastogi is an Engagement Manager with Cognizants Enterprise Analytics Practice, working within its Digital Analytics Center of Excellence. He has over 10 years of industry experience and specializes in strategy, and measurement/assessment of digital marketing activities for customers across verticals. Udit can be reached at Udit-1.Rastogi-1@cognizant.com. Tom Jirele is a Principal and Practice Leader within Cognizants Multi-Channel Marketing and Measurement Center of Excellence, focusing on the measurement and interaction of marketing channels to optimize client spend. He has over 30 years of experience in measurement and modeling across the life sciences, retail, finance and education industries. For the past 15 years he has worked in the life sciences industry leading engagements related to promotional measurement, marketing strategy and multi-channel optimization. He can be reached at Thomas.Jirele@Cognizant.com.

About Cognizants Enterprise Analytics Practice

Cognizants Enterprise Analytics Practice (EAP) combines business consulting, in-depth domain expertise, predictive analytics and technology services to help clients gain actionable and measurable insights and make smarter decisions that future-proof their businesses. The practice offers comprehensive solutions and services in the areas of sales operations and management, product management and market research. EAPs expertise spans sales force and marketing effectiveness, incentives management, forecasting, segmentation, multi-channel marketing and promotion, alignment, managed markets and digital analytics. With its highly experienced group of consultants, statisticians and industry specialists, EAP prepares companies for the future of analytics through its innovative Plan, Build and Operate model and a mature Global Partnership model. The result: solutions that are delivered in a flexible, responsive and cost-effective manner. Learn more at: http://www.cognizant.com/enterpriseanalytics.

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About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the worlds leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 137,700 employees as of December 31, 2011, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

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