Networks, Network Analysis & Business Relevance

Setting Expectations for SMM638

SMM638 Network Analytics

What Are Networks?

Networks are structures of interconnected entities

  • Entities are interconnected via specific relationships
  • Examples of relationships are:
    • Resource flow (e.g., economic exchange)
    • Information exchange (e.g., electronic communication)
    • Physical connection (e.g., London tube)
    • Membership (e.g., student-program affiliation)

Note

Networks and graphs are interrelated yet distinct concepts: graphs are mathematical constructs, while networks regard concrete relationships between entities that can be represented using graphs

What to Expect: Network Analysis

Network Analysis Tools Real-world Examples
Visualize complex relationship patterns Associations between subreddits on Reddit
Identify influential nodes and key positions Opinion leaders in organizations and platforms
Detect network sub-components and communities Communication silos in teams
Understand information flows and diffusion Impact of Tube station closures on connectivity
Explain properties of complex systems quantitatively Distribution of popularity in cultural markets

Network Analysis Skills

Key skills you’ll develop:

  • Network data collection, wrangling, and structuring
  • Computing various network indicators
  • Statistical analysis of network data
  • Creating meaningful network visualizations
  • Translating insights into business strategy

Networks in Markets

Information Flow

  • Product reviews and recommendations spread through networks1
  • Market intelligence travels via professional connections
  • Innovation diffuses along network pathways

Networks in Markets

Trust and Transaction Costs

  • Trust networks reduce monitoring costs and increase task focus1
  • Established relationships lower search costs for new business partners
  • Repeat interactions enable efficient exchange and coordination among parties

Networks in Markets

Platform Economy’s Network Structure

  • Platform economics is predicated around the value of connections1
  • Network effects drive scaling (how to leverage networks to get attention?)
  • An ecosystem’s advantage relies on networks (e.g., Android is more than an operating system, it’s a complex network of firms, developers, and customers)

Networks in Organizations

Knowledge Resides in Networks

Organizational Network Analysis allows analysts to understand:

  • Knowledge locus and knowledge sharing
  • Innovation through diverse connections
  • Problem-solving via boundary-spanning ties

Networks in Organizations

Teams Function through Networks

  • Collaboration patterns affect performance1
  • Informal advice networks complement formal structure2
  • Communication efficiency depends on network position

Networks in Organizations

Networks Enable Strategy

  • Sparsely connected networks offer value creation opportunities1
  • Those who connect otherwise disconnected groups have information advantages2
  • Central nodes have influence and power3

Your Learning Journey

Code 
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gantt
    title Gantt chart of the module
    dateFormat YYYY-MM-DD
    axisFormat %b %d

    section Topics
    Foundations:done, topic1, 2025-09-29, 7d
    Centrality :active, topic2, 2025-10-06, 14d
    Dynamics   :topic3, 2025-10-20, 14d
    Communities:topic4, 2025-11-17, 14d
    Performance:topic5, 2025-12-01, 14d

    section Teaching Cases
    RCB: crit, milestone, case0, 2025-10-08, 0d
    Who is the right influencer?:crit, milestone, case1, 2025-10-15, 0d
    Feeding Soundcloud's recommendation system:crit, milestone, case2, 2025-10-29, 0d
    Profiling beer enthusiasts:crit, milestone, case3, 2025-11-19, 0d
    Employee performance:crit, milestone, case4, 2025-12-10, 0d

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gantt
    title Gantt chart of the module
    dateFormat YYYY-MM-DD
    axisFormat %b %d

    section Topics
    Foundations:done, topic1, 2025-09-29, 7d
    Centrality :active, topic2, 2025-10-06, 14d
    Dynamics   :topic3, 2025-10-20, 14d
    Communities:topic4, 2025-11-17, 14d
    Performance:topic5, 2025-12-01, 14d

    section Teaching Cases
    RCB: crit, milestone, case0, 2025-10-08, 0d
    Who is the right influencer?:crit, milestone, case1, 2025-10-15, 0d
    Feeding Soundcloud's recommendation system:crit, milestone, case2, 2025-10-29, 0d
    Profiling beer enthusiasts:crit, milestone, case3, 2025-11-19, 0d
    Employee performance:crit, milestone, case4, 2025-12-10, 0d

  • Real business cases (e.g., RBC fraud detection, marketing through Twitch)
  • Hands-on coding in R and Python
  • Actionable insights for business decision-making