Market intelligence providers, Internal research forces, and external expert companies collect information to inform key decisions. Nevertheless, even the most successful teams do require an additional advantage or external organizational details. Enterprise networks are where the expertise networks come in.
An expert network connects decision-makers with experienced professionals in the industry, providing firsthand experience and new ideas. The combination will enable companies to bridge knowledge gaps in the shortest time possible and make more informed decisions.
This blog post examines how market intelligence providers utilize Nexus Expert Research to enhance their research and inform more informed strategic decisions.
We will define what expert networks are, explain why they are so valuable in market research, and provide examples of how expert networks are utilized by businesses, including startups, investors, and enterprises, to gain a competitive advantage.
Understanding Market Intelligence and Expert Networks
What is Market Intelligence?
Market intelligence is the art of gathering and evaluating data pertaining to a market, such as industry trends, competitor actions, customer preferences, and other macroeconomic influences, in order to guide business strategy.
Market intelligence research solutions helps organizations understand their operating environment and make informed decisions based on data-driven insights for product development, marketing, and investments, among others.
What are Expert Networks?
Expert networks refer to institutions or websites that connect companies with experts in various fields. That is, they offer access to expertise through screening and maintaining a roster of industry experts, ex-C-level executives, consultants, scholars, or even practitioners. A company can also consult with such experts within a short time (through one-on-one interviews, surveys, or written reports) via an expert network and obtain information that may be unavailable within the company.
These networks can be utilized to share knowledge and offer strategic advice tailored to the client’s specific needs. Tapping an expert network helps market intelligence teams gain direct access to firsthand experience and a real-world perspective that may not be available in more traditional data sources.
Why Market Intelligence Providers Leverage Expert Networks
Market intelligence professionals can consider expert networks to be a hidden weapon for addressing the information void and approving strategies within a short timeframe.
These are some of the reasons why market intelligence providers use the expert network:
Specialized Expertise:
Expert networks provide access to niche experts who possess in-depth knowledge about an industry that may not be readily available internally. An example of this is allowing a provider to connect with an ex-industry executive or technical expert who can offer insight that is not readily available elsewhere.
Faster Insights & Decisions:
Traditional research may take weeks or months to get information. Contrarily, expert networks allow accessing insight quickly – as little as a few days or a few hours – via expert consultations. This speed also implies that companies can receive answers in real time, keep pace with the rapid changes in the market and make timely decisions.
Affordable and Scalable Research:
When it comes to addressing knowledge gaps, a network is often more cost-effective than engaging an expert, as it can be achieved by employing full-time employees or large consulting firms. The market intelligence providers will be able to increase and decrease their number of experts as needed and compensate for their services on a project-by-project basis.
Knowledgeable, Data-Driven Decisions:
Expert opinion provides a level of validation to the information and assumptions the intelligence units already possess. Through a conversation with the individual with practical experience, the analysts will be able to validate the trends or refute their hypotheses based on first-hand data.
Competitive Advantage:
The competitive advantage is the ability of organizations to outperform their competitors due to expert networks. Gaining an inside view of the market movements or competitor schemes would imply lesser unpredictability and a more assertive approach to strategy.
A strategic advantage over the industry is that companies that incorporate specialist knowledge in market intelligence are in a better position to recognize new opportunities and anticipate changes within the industry.
How Expert Networks Support Market Intelligence
As a practical example, you can take a look at how market intelligence providers actually use expert networks.
Expert engagements can take various forms. The following are some typical applications of expert networks in market intelligence and market research:
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Competitive Intelligence and Market Analysis
Companies should be aware of their competitors and the general market dynamics, which are all elements of market intelligence. Expert networks are useful because they provide a means to connect companies with industry insiders who are familiar with the competition. These professionals are employed by businesses to learn their competitors’ tactics, pricing strategies, and emerging industry trends.
For example, a market intelligence team may seek the counsel of a former executive from an industry competitor or an industry analyst to gain an insider’s view of what is happening across the industry. The knowledge gained from these professional calls may reveal gaps and opportunities in the market that are not apparent in open data.
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Product Development and Market Entry Validation
Expert networks are highly useful when a company ventures into a new product or enters a new market. The organizations would like to determine market demand and verify their ideas before investing heavily in development or expansion. They would be able to seek the honest opinion of industry experts or prospective clients through an expert network. An example is that a startup can reach out to people within the target business to pilot a future product idea, develop it, and determine market fit before launching on a large scale.
Similarly, when a business wishes to enter a new geographical location, it may need to consult a local market expert to become familiar with the cultural preferences, laws, or competitive challenges. This professional knowledge ensures that products and strategies align with market realities.
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Investment Research and Due Diligence
Expert networks are commonly used by investors and strategic decision-makers (including venture capitalists, private equity firms, or corporate M&A teams). A clear understanding of the industry and the company’s status is crucial when deciding on an investment opportunity or a target company to acquire. Expert networks offer investors the opportunity to engage with financial analysts, industry veterans, or former employees of a target company for unfiltered interviews.
For example, a VC company conducting due diligence on a tech startup can schedule calls with professionals in that field of technology to discuss the innovative nature of the startup, the competitiveness of the market, and any potential red flags. Hedge funds and asset managers are no exception, as they also employ expert calls to verify the assumptions valid in the market or obtain the current information that has not necessarily been reported.
Who Can Benefit from Expert Networks?
Expert networks were initially used in the financial sector, but nowadays virtually any organization runs them as one of its market intelligence tools. The following are some of the major parties that can gain access to expert network information:
Smaller companies can be found in Startup Founders and SMBs: Smaller companies do not necessarily have large research departments. Expert networks provide them with on-demand access to veteran professionals and expert advice on business strategy without the hefty cost. It is possible to balance the level of competition with larger competitors, as a startup founder can learn a great deal about the industry’s specifics or test a business idea simply by discussing it with a professional.
Investors (VCs and Private Equity)
According to the notes, venture and other types of private equity firms were among the first to actively adopt expert networks.
These are investors who consult with experts to conduct more thorough due diligence on markets and companies. Having market intelligence information at the hands of informed insiders enables them to make investments with greater confidence and a better understanding of the probable risks and opportunities.
Corporate Decision Makers
The executives and the strategy teams in the mid and large companies rely on expert networks to inform their strategic planning and competitive intelligence.
It could be a Chief Strategy Officer optimizing a five-year plan, or a product manager investigating a new trend, enlisting the help of outside experts can make corporate decision-makers feel confident that they are working with the most recent information and divergent views. This results in stronger strategies and enables them to foresee the changes within their sector.
Best Practices for Using Expert Networks Effectively
Market intelligence providers need to be strategic when approaching expert networks in order to maximise on them. The following are some of the tips and best practices in using expert networks:
Define Your Clear Goals
Find out what you want to know before you make an outreach. It might be having a clear question or goal whether it is learning about a particular market trend or assessing a competitor, they will help the network identify an ideal expert. A clear scope has the advantage of making the expert engagement to be focused and productive.
Choose the Right Network
A little homework will find you a network that is well covered in your industry or the subject matter you require. Choose a trusted expert network company like Nexus Expert Research, which thoroughly screens its professionals and maintains a record of positive client reviews.
A better choice will be a network with other relevant expertise and good reputation.
Prepare for the Expert Consultation
Interview expert calls or meetings are almost like an interview. Be prepared to ask special questions to extract the maximum value from the conversation. Provide background or context to the expert in advance, where possible, to give them an idea of what you need, and thus, they can give specific insights. The better you prepare, the more actionable data you will acquire in a small time.
Conclusion
Expert networks have also emerged as an essential resource in the market intelligence providers that are seeking to reinforce their research and decision making. These networks help companies overcome the complexities of the world by giving them quick access to specialized knowledge and first hand market information.
In a world where the success of information benefits makes the difference between success and failure, the art of tapping into and leveraging expert networks can keep both large and small businesses informed, nimble and competitive. As we have observed, this approach can be valuable to everyone, including those who are new in the startup, as well as the Fortune 500 strategists.
Ready to leverage expert networks for your own market intelligence needs? Nexus Expert Research specializes in connecting decision-makers with verified experts across industries.
