connectors, networks and innovation success

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CONNECTORS, NETWORKS and INNOVATION SUCCESS by Werner Iucksch It may not look like it, but one of the most controversial concepts around social networks is that of the importance of individuals that became known as connectors ”. In “The Tipping Point ”, Malcolm Gladwell argues that this special kind of people are able to pick‐up ideas, values, trends from one cluster of people and transport it to another, spreading ideas in society. As connectors are linked to a high number of people, they could initiate big movements of behaviour change. In “Linked ”, Albert‐László Barabási writes that his research found that some places in cyberspace (that he calls “hubs”) concentrate a vast amount of links and traffic of information. The author suggests that this result reinforce the theory of the “power of connectors”. This would confirm a golden piece of information to marketers. Imagine the economies that would be possible by marketing to a selected group of people, subsequently letting them use their networks to spread the news and drive adoption of products or services. This concept is now widely accepted around the business world, Procter and Gamble even sells the access to such group of people , but if that’s what it takes to spread the word and drive adoption of new product/services, why most of them continue to die off? One of the most respected network researchers, Duncan Watts , from Columbia University, is also interested in this question. He found some interesting data and formulated some hypotheses on why that happens, when he conducted an

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Page 1: Connectors, Networks and Innovation Success

CONNECTORS,NETWORKSandINNOVATIONSUCCESS

byWernerIucksch

Itmaynotlooklikeit,butoneofthemostcontroversialconceptsaroundsocialnetworksisthatoftheimportanceofindividualsthatbecameknownas“connectors”.In“TheTippingPoint”,MalcolmGladwellarguesthatthisspecialkindofpeopleareabletopick‐upideas,values,trendsfromoneclusterofpeopleandtransportittoanother,spreadingideasinsociety.Asconnectorsarelinkedtoahighnumberofpeople,theycouldinitiatebigmovementsofbehaviourchange.

In“Linked”,Albert‐LászlóBarabásiwritesthathisresearchfoundthatsomeplacesincyberspace(thathecalls“hubs”)concentrateavastamountoflinksandtrafficofinformation.Theauthorsuggeststhatthisresultreinforcethetheoryofthe“powerofconnectors”.

Thiswouldconfirmagoldenpieceofinformationtomarketers.Imaginetheeconomiesthatwouldbepossiblebymarketingtoaselectedgroupofpeople,subsequentlylettingthemusetheirnetworkstospreadthenewsanddriveadoptionofproductsorservices.

Thisconceptisnowwidelyacceptedaroundthebusinessworld,ProcterandGambleevensellstheaccesstosuchgroupofpeople,butifthat’swhatittakestospreadthewordanddriveadoptionofnewproduct/services,whymostofthemcontinuetodieoff?

Oneofthemostrespectednetworkresearchers,DuncanWatts,fromColumbiaUniversity,isalsointerestedinthisquestion.Hefoundsomeinterestingdataandformulatedsomehypothesesonwhythathappens,whenheconductedan

Page 2: Connectors, Networks and Innovation Success

enhancedversionofStanleyMilgram’s“SmallWorldexperiment”(theonethatarguesthatanytwopeopleintheworldareseparatedbynomorethan6otherpeople)

Afterstartingmorethan60,000e‐mailchainstofind18targetsaroundtheglobe,Wattsnoticedthatonly5%ofthemessagespassedthroughhighlyconnectedpeople.Fromthisdataitispossibletohypothesizethatalthoughsomepeoplemayhavemanymoreconnectionsthanothers,itdoesn’tmeanthattheyhavemuchthepowertoinfluencebehaviour,fortheyarenotrelieduponforgiventasks.Ofcoursethishypothesishadagreatimpact:

http://www.youtube.com/watch?v=AtnR5H6AVVU

Ifthisisthecase,it’sfairtosayittakesmoretotheadoptionofnewideas/products/servicesthansimplyhavingthemspreadaroundbyconnectors.Butwhat?

Innovationdiffusionisanewscience,butsomestudiespointtheway.It’shelpfultothinkabout“criticalthresholds”,aconceptthatbasicallyestatesthatcontagionofindividualswithideaswillonlyhappenifacertainthresholdofinfluenceisachieved.

Forexample,someonemaybegintouseaproductbecauseitisinteresting,someoneelseclosetohimnoticesthatitsolvesaproblems/hehas.Athirdfriendnoticesthattwoofhiscolleaguesareusingitandisnolongershytotrytheinnovation.Thiswaytheymaybuildan“infectedsocialcluster”,whichcanbeconnectedtootherclusters(groupsofpeopletheyknow)insuchawaythatitwillconvertenoughindividualstocascadetheusageoftheproducttomoreandmoreclusters,untilit’llgettoapointwherecriticalmassisachievedtounfoldaglobalinfection(orglobaladoptionoftheinnovation).

Thisis,however,anextraordinarilydifficultprocesstomanipulateortopredict.Aswehearsooften,moviestudiosstillinvestmillionsofdollarsinprojectsthatdon’ttakeoff(e.g.Waterworld,BattlefieldEarth),musichistoryisfullofgroupsheavilypromotedthatneverliveduptothe“hype”(e.g.anyonehitwonder)andbooksassuccessfulasHarryPottergetrejectedseveraltimesbeforebeingpublished.Itcanbearguedthatprofessionalsinvolvedwerenotsocompetent,madebaddecisions,butthere’sanadditionalcomponentthatisaprettycruel:humanbehaviour.

Page 3: Connectors, Networks and Innovation Success

Anotherexperimentisverytellingofoursocialnature.Someyearsago,aprox.14,000peoplewererecruitedtoevaluateanumberofsongsfromunknownmusiciansviaawebsite,downloadingwhichevertheywanted.Halfofthesepeopleonlyhadinformationaboutthenameofthebandandthesong,notbeingabletohaveanyinteractionwitheachother(thuseachpersonwasnotinfluencedbyanyoneelse).Theotherhalfwassub‐dividedin8groups.Inadditiontothenameofbandandsong,eachpersoninasub‐grouphadaccesstoareal‐time“qualityrating”andnumberofdownloadsofeachsongbytheothersub‐group’smembers(sotherewereeightindependentsocialsub‐groups,eachwiththeirownrankings,qualitylevelsandnumberofdownloads.)

IfthepublishersthatrejectedHarryPotterweresoincompetent,thebook’squalityshouldbeevidenttoanyonesincethefirstdraft.Likewise,everygroupintheexperimentshouldhaveevaluatedeachsongsimilarly,giventhesizeofthesample.However,thesongrankingofthefirsthalf(theonethatonlyknewthenameofthebandsandsongs)wasradicallydifferentfromthatofthesub‐groups.

Thesub‐groupsresultswereyetmoreinteresting.Theywereremarkablydifferentamongstthemselves.Thetopsonginonegroupwasthe40thinanothergroupandsoon.Thereason:thetopsonginagroupwaswellevaluatedearlyintheprocessandasotherrespondentswereabletoseetheratingsofotherpeople,theyendedupbeinginfluencedbytheopinions.Inothergroups,anothersongwasanearlyleader,sotheyhadadifferentresult.Thisissomethingthatisobservedinotherareasofscienceandisknownas“PowerLaw”,orastheexpressiongoes:“therich,getricher”.

Well,ifconnectorsdonotequalsuccessandifitissohardtopredictthebehaviourofnetworks,whatcanmarketersdo?

Page 4: Connectors, Networks and Innovation Success

Fromwhatwaslearned,speed,controlandflexibilityseemtobeessential.Oneideatotakeadvantageofthemistolaunchmanyproducts/servicesatthesametime,measuretheiradoptioninthefirstmomentsoftheirlives.Assoonasit’spossibletoidentifywhichonehasmostpotentialtospread,rearrangethebudgetinbenefitofthisoption,makingpeopleawareofit,facilitatingitsgrowth.Alsocheckifsomeotherproduct/serviceisdoingwellwithinimportantniches,calculateitspotentialandinvestaccordingly.Terminatetherest.

Incommunication,ratherthanhavingabiglaunchofonefinalisedversioncampaign,itmaybethecaseofspreadingseveraldifferentmessagesandinteractionpossibilities,withcommonvaluesandstrategicdirection,inasmallerscale.Aftersometime,evaluatehoweachoneisdoing(WOM,sales,brandvalue,etc.)andinvestheavilyinwhateverisconsideredmoreimportantatthemoment.Theconceptissimilartothatofbetatestingmanyversionsofsoftwarebeforerollingoutafullcommercialversion.

Ifthisisdone,connectorscanbeuseful.Althoughtheyarenotnecessarilyinfluentialtoeveryone,theycanhelptoseedavarietyofmessagesquitefast.Withavarietyofmessages,itismorelikelythattherewillbesomethatarerelevantbythemselves(withouttheneedofaconnectorvouchingforit),gainingspacebecausetheyreachtheappropriateaudienceandachievecriticalmassfastenoughandwilllivelonger,becauseresourceswillbereallocatedtokeepthemgrowing.

Thisisanidea.Sciencestillislearninghownetworksoperateandbusinessesarestillstrugglingtomakethemostofsocialnetworksanddigitalplatforms.Therearenoprovenmodelsyet;thereismoreindevelopingasuccessfulproduct/servicethanspeed,flexibilityandcontrol;thewaybrandsarethoughtischangingwiththebehaviourofindividuals.Therearelotsofthreats,aswellaslotsofopportunities.Whatanexcitingtimetoworkwithcommunications.