Wharton Alumni Magazine
Winter 2007
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The Truth About Deception

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Some of the physicians appeared to be the hub of wheels with many spokes—they were connected to other doctors who trusted them. Some physicians were isolated, and others were cross-connectors—individuals who linked up two networks that otherwise seemed to be almost separate.

Some of the hubs were unsurprising— they were renowned leaders at highly reputed university medical centers, and Bristol-Myers Squibb had long established relationships with them. But several highly connected physicians in one of the networks were not even on the radar for Bristol-Myers Squibb. And the researchers were surprised to discover how the two parallel networks were divided: by ethnicity. In one network, the physicians had Western surnames, and in the other, Asian ones. While ethnic enclaves are quite obvious in social life, the way that those social norms transfer to professional life was only obvious in retrospect.

In the next step Van den Bulte and his fellow researchers, including Wharton marketing colleague Raghuram Iyengar, are analyzing two separate sets of data. One, they are combining the network data with databases containing information on sales calls by pharma reps, on physicians' prescription volume for the previous generation drug in this treatment category, and on the timing when each doctor wrote his or her first prescription for the new Bristol-Myers Squibb drug.

Two, they are overlaying demographic and professional information—where the doctors attended medical school, how long have they been in practice, whether they have a publication record—to find personal characteristics that may be used in other markets to predict the structure of the social network, including who the influential physicians are.

With the first phase completed in October 2006, the study is being extended to more cities in the U.S. and China to see whether the results hold up.

How research Becomes Practice

So again, how does the topic of Van den Bulte's research— new product diffusion and social networks—relate to the spread of academic discoveries to business practices? Van den Bulte supplies a few examples from his own experience, recalling how Tom Valente, who recommended him for the Bristol-Myers Squibb job, knew him.

While still a doctoral student, Van den Bulte read a halfcentury- old sociology study on the diffusion of a new drug. He thought it would be interesting to re-analyze the data using modern techniques. A professor with whom Van den Bulte was taking a class at the time had just come back from a conference where, he happened to remember, someone had made a presentation using those very same old data. Van den Bulte checked the conference program and found his name: Thomas Valente. Voila—a cross connection.

In another example of how networks lead to the spread of academic research, Van den Bulte presented his ideas at the annual business-to-business marketing conference run by his former faculty adviser at Penn State's Institute for the Study of Business Markets. In attendance was Dominique Hanssens, executive director of the Marketing Science Institute, a Cambridge, MA industry-sponsored nonprofit organization that supports academic research to develop and disseminate marketing knowledge. Hanssens drafted Van den Bulte to write the book on social network marketing for its Relevant Knowledge line, a series of accessible books that interpret academic theory for business practitioners.

The book's publication will continue the dissemination process that is already in motion. In September 2006, Knowledge@Wharton published an article about his work, allowing Van den Bulte's research to reach the biweekly journal's worldwide mass audience of 500,000 subscribers across English, Spanish, Chinese, Indian, and Portuguese editions.

Having his ideas reach both academic and professional audiences is important to him. Echoing Mitchell, Van den Bulte said, "If I can't publish my results, I'm not interested in consulting. A condition for my working on this that we could use it for research purposes."

Fortunately, the firm found that reasonable. The manager in charge of the new product's launch told Van den Bulte he wasn't worried about exposing the results to competitors because academic research takes so long. "By the time the paper is out, either we will already be successful with the product, and we won't care," the product manager joked. "Or, the product will have failed, in which case we really won't care."

Getting Involved with Wharton Research

The Wharton Partnership is the Wharton School's program for fostering industry/academic collaboration. The Partnership engages with more than 200 corporations and foundations.

The Partnership provides member organizations with a single entry point to the School. A relationship manager assists Partners in identifying and connecting with faculty who are researching topics of specific interest to them. Companies collaborating with research centers have early access to findings.

For more information, visit partnership.wharton.upenn.edu, call 215.898.5070, or e-mail corporate-fdn@wharton.upenn.edu.

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