Saturday, December 3, 2011

Value of Social Network -- A Large-Scale Analysis on Network Structure Impact to Financial Revenue of Information Technology Consultants

Hi, I just found a very interesting study from MIT and IBM reserach about the financial impact of network structures in technology consulting firms.


The study analyzes the relationship between productivity of consultants and their use of social networks. The communication patterns of over 1000 consultants were measured and analyzed over a period of three years. The research team looked at the networks of individual workers as well as project level networks.


The results for individual workers show that betweeness centrality and strong connection to managers positively impact productivity (measured by billable hours). Network size, as measured by in-degrees and out-degrees, does not have an association with performance.


Project network characteristics are overall more dominant in predicting revenue than individual network characteristics. In project teams, betweeness centrality and overall team composition can be associated with project performance. Another interesing finding is that there are inverted U-shaped relationships between gender distribution and project revenue as well as between the number of managers and project revenue.


Have a good weekend!

Nikolas

1 comment:

Christopher Tunnard said...

Excellent, Nicholas. Great information from a good course.