Expert networks date back in the late 1990s, connecting researchers to a pool of industry experts. What initially started as a time-consuming process to help firms with research is now a stable industry due to rapid innovations in technology and connectivity between people.
Expert networks primarily supported investment and consulting companies; however traditional expert networks are slowly being replaced by powerful expert insight which is now incorporated in different market intelligence applications. Companies are able to track performance and specific data metrics automatically using several tools which aggregate market data of their interest.
In Africa, expert networks are being used by companies to gain insight in several industries, but this service is currently being sourced indirectly. Companies operating in Africa mostly hire consulting firms such as deloitte, Mckinsey, which in return hire experts or turn to expert networks to support their delivery. To fulfill these demands, consulting firms hire short-term consultants or experts to support their internal teams. The presence of these firms in different parts of Africa gives them a competitive edge because they understand Africa’s diversity and have access to experts and networks in different regions in Africa.
An Expert network is a service that connects firms and businesses with industry experts in various fields for consultation. Typical firms demanding this service are businesses, investment, consulting, or research firms who might require additional information and need expert insights for clarity and to support their decision making about a hypothesis at hand.
An Example is a pharmaceutical company acquiring a drug manufacturing company in a new region. The financial due diligence and the economic potential of the purchase might all be ok, but the pharmaceutical firm could be needing more information about the internal culture of the new acquisition, or they might wish to speak to an industry leader in the region to get more insights. In this case, an expert is hired to support and finalize their purchasing decision.
Typically, expert networks work as follows: an expert network firm builds its network in different industries and include a wide range of SMEs or specializations. When consulting or investment firms need an expert to consult on a project, they reach out to the firm, which then connects them to the right expert. The investment or consulting firm pays the expert network firm, which then compensates the expert.
One might ask why firms do not reach out directly to experts? The answer is simply because firms such as private equity, financial institutions do not have resources to vet and collect experts in different industries as they do not know when they might need them. Instead, when they have a client and wish to evaluate an investment, seek clarity on a policy, or have a technical inquiry before making a decision, these firms prefer to use expert networks to support their decision making. On the other hand, experts are busy, have their own jobs or businesses to manage in their respective industries, and have no interest in marketing themselves as consultants. However, these experts do not mind making an extra coin while contributing to something they know. It pays well and costs them little in time.
Experts can come from various backgrounds, including academia, industry, and consulting. They offer expertise in everything from market trends and competitive landscapes to technical details and strategic advice. This access to specialized knowledge helps clients make informed decisions, mitigate risks, and identify opportunities.
Expert calls are the most common way firms access expert insights. In a survey by Guidepoint, an expert network firm, respondents overwhelmingly indicated that expert calls are their preferred method of research — with more than 75% stating they use calls frequently.
Many firms access expert networks for insights about specific projects and scenarios their company is handling, and in those cases, they would want to connect with an expert directly. However, expert call transcript libraries are becoming a hugely valuable resource in cases where firms seek more general insights and want to become more familiar with a particular company or industry over time.
For example, a private equity firm looking for target companies in the clothing retail industry may spend time in an expert call transcript library, reading as many calls as possible to familiarize themselves with trends, important players, and potential opportunities to pursue.
In Africa, these calls are mostly used by consulting firms who need to support their client work in research, project management, or in management consulting. In the recent years, there is a growing demand for this service from the private sector and investment firms who are seeking additional data and information to support their investments, especially in the mid-market.
The expert network industry has changed since its inception in the early 2000s. Initially, these networks were small and focused primarily on providing information to hedge funds and private equity firms. As the demand for expert knowledge increased, so did the scale and diversifications of the networks.
Here is an evolution summary of expert networks over the past few decades:
The early 2000s saw the formation of the first expert networks. Leading firms like Gerson Lehrman Group (GLG) pioneered the industry, serving clients in financial services. These early networks focused on connecting investors with industry experts to provide insights that could influence investment decisions.
The expert network industry expanded beyond the financial sector. New companies emerged specializing in different sectors, and across various industries. This period was also the period where firms understood the completive value they can gain from these networks for strategic decision-making. This diversification led to inclusion of experts from a broader range of fields like healthcare and consumer goods.
The past decade has seen significant advancements in technology, which have shaped the expert network industry. Platforms and tech companies have emerged utilizing AI and machine learning to match clients with experts more effectively. Additionally, the rise of virtual consultations has made it easier for clients to access expert insights from anywhere in the world. Regulations have also shaped the industry; As expert networks became more prominent, confidentiality and insider trading issues led to stricter compliance standards. Today, reputable expert networks have rigorous guidelines to ensure the integrity of their clients and services.
Traditional expert networks help connect business and investment researchers with industry experts, they are often time-consuming and costly before finally reaching critical insights. Technological innovations may make information more accessible than ever, but they cannot replace the value of high-level insights from human industry experts.
New technologies in the space are providing content, spanning the four key perspectives of research, industry-leading automation, and AI search capabilities. These features are enabling firms to better understand market sentiments, investment strategies, and financial forecasts, complementing the expert perspectives they already rely on.
African firms face challenges in aggregating and organizing insights due to the rapid growth, change in regulations and the complex nature of emerging markets. African economies are undergoing rapid changes and unlike other parts of the world where most trends cut across industries and policies tend to be stable; Africa is not the same and most countries are at different stages. This why African firms can still benefit from a wide variety of experts in different sectors in addition to automated insights because trends and regulations will continue to evolve fast in emerging markets.
