Market insights
How Investors Use Expert Networks to Be Ahead of the Curve
Nov 29, 2024
3 minutes read
Expert networks are platforms that serve to connect businesses in a prompt and secure way with experienced subject matter experts in order to get insights and receive advice on specific topics. Today, expert networks have become essential for businesses, allowing them to make better-informed decisions and gain a competitive advantage.
By leveraging these expert networks, companies gain insights into current best practices, emerging trends and opportunities, and industry-specific insights, all of which help drive innovation and growth. Furthermore, expert networks can help businesses build relationships with influential thought leaders and industry experts.
But things looked different for businesses seeking expertise from outside a few decades ago.
With the emergence of expert networks, however, businesses gained access to a more diverse pool of experts and industry insiders and a more flexible, on-demand model in order to obtain insights and expert analysis.
The Traditional Consulting Model
The traditional consulting model involves businesses hiring a consulting firm (or individual consultant) to provide them with advice, analysis, or specialized knowledge on a particular topic or issue concerning their business, a possible investment, or any other topic.
This model typically involves longer-term engagement and is often more costly than alternatives such as expert networks.
However, traditional consulting was often expensive, inflexible, limited to certain industry sectors, and struggled to provide up-to-date information. Furthermore, the traditional consulting model was often a poor fit for businesses with specific, short-term needs.
Other limitations of the traditional consulting model include:
- the generally high cost of engaging consultants
- potential conflicts of interest
- a general lack of flexibility in terms of scope and the duration of engagements.
Additionally, the traditional consulting model was often unable to provide access to a broad range of experts or information about emerging trends in a given industry.
The Emergence of Expert Networks
The emergence of expert networks, which began around 1999, was driven by several factors, including advances in technology that made it easier to connect with people across different locations, industries, and geographic regions, a desire by businesses for more flexible and affordable consulting options, and a growing need for specialized knowledge in niche areas.
Additionally, as the internet and its digital capabilities became more ubiquitous, the democratization of knowledge, as well as the rise of the on-demand “gig” economy, have greatly contributed to the growth of expert networks as they make it far easier for experienced professionals to share their insights, and for businesses to access that first-hand knowledge and expertise.
Today, expert networks offer a number of advantages over traditional consulting, including:
- access to a larger and more diverse pool of experts
- greater flexibility in terms of scope and duration of consulting engagements
- lower costs
- far faster turnaround times for acquiring insights and advice.
Expert networks are also better suited for providing businesses with up-to-date and industry-specific knowledge and insights as well as the ability to quickly pivot and adapt to emerging trends.
Comparing Traditional Consulting and Online Expert Networks
Traditional consulting and online expert networks differ in several key aspects. Traditional consulting tends to be more complex and time-consuming, but also more expensive, while online experts offer a more nimble and cost-effective alternative. Furthermore, the traditional consulting model generally relies on a smaller pool of experts, while online networks offer businesses access to a larger and vastly more diverse range of experts from around the world.
Although traditional consulting and online expert networks differ in significant ways, it is worth noting that they are not necessarily mutually exclusive.
By understanding the pros and cons of each model, businesses are able to make better-informed decisions on how to leverage expert knowledge best in order to drive their growth and innovation.
In order to determine which model is better for a given business need, it is essential to consider factors such as the scope and duration of the engagement, the level of expertise required, the budget, and the timeline for obtaining insights and advice.
Businesses should also be mindful of the level of flexibility required and the potential for long-term support and guidance. Therefore, it is by taking these factors into consideration and comparing the advantages and disadvantages of each model that businesses can make an informed decision about which approach to take in a given situation.
Final word:
The evolution of expert networks has represented a seismic shift in how businesses can gain access to specialized knowledge and expertise.
Simply put, expert networks have now become an important resource for companies seeking to gain a competitive advantage in today’s fast-paced and ever-changing business environment. By leveraging expert networks, businesses can gain access to knowledge that they do not have in-house, allowing them to make more informed decisions more quickly, and thus drive innovation and growth.
Whether it is the traditional consulting model or state-of-the-art online expert networks, businesses now have a much wider range of options to choose from when in need of insights and advice.
