Financial Network Mapping

Application Domain. Infrastructure Systems Investing

Visualization is key in big data analytics.

Financial network maps are network visualizations of the financial system of emerging industry systems and clusters. The underlying premise is that industries change as the result of regulations, economic dynamics and technological innovation. The result is that new industry segments become integrated in 'traditional value chains', particularly as 'resilience and adaptive investing' is becoming a trend in economic development.

The integration of information technologies, data analytics, artificial intelligence and machine learning in traditional industries is resulting in industrial renewal, such as the shift from transportation to mobility access, from centralized energy to 'micro-grids', from water treatment and provision to 'smart water', from traditional agriculture to 'climate-resilient farming', are enabling data-driven business models and disrupting key sectors of the economy.

Our research seeks to understand how network theory can be used to explain shifts in functional cross-sectoral industry ecosystems at high levels of granularity.

We have focused on smart mobility, smart grid, green chemistry, and smart agriculture to uncover financial relations in emerging industry ecosystems.

• Left: Financial network relationships (nodes and edges) between industry segments engaged in smart mobility. The edges reflect the frequency of financial interactions between the industry segments (nodes) in the industry.
• Right: Identification of anchor (red) and catalyst (blue) industry segments using network theory (centrality and connectivity). Anchor nodes are characterized by limited, high density networks, where catalyst nodes reflect extensive low density networks between various anchors and other catalysts.

(Source: Adriaens and Tahvanainen, 2016; Data: Bloomberg; Visualization: Gephi)

Students and Collaborators

Dimitris Assanis, PhD, Mechanical Engineering; Ryan Moya, Erb Institute and Ross School of Business

Antti Tahvanainen, PhD, Research Institute of the Finnish Economy, Helsinki, Finland; Susan Zielinski, Smart Mobility, UM; Robert Hampshire, UMTRI; Siqian Chen, Professor, IOE.

Ryan Moya, MS/MBA; currently senior program manager (Energy/Sustainability) at Commercial Building Real Estate (Seattle), working on Microsoft's real estate portfolio

Robert Hampshire, Professor of Operations Management and Policy, The University of Michigan.