Using LinkedIn.com for other than networking?

I got a mail from a friend, who had been contemplating about the powers
of LinkedIn.com. In response to his e-mail I wrote quite a lengthy
answer, of which I've decided to publish this edited extract, which I
hope you will find interesting:

... from the setup's (LinkedIn's) nature I deduce both advantages and drawbacks.

On the one hand it is a powerful tool to find the personal(& professional) connections you never knew you had, but also to find names of important people in specific organisations, which are not disclosed elsewhere.

For instance, if I want to get in touch with the Global Brand Manager in Allied Domecq who are now merging with Pernod Ricard, I simply search for "Allied Domecq", and a wide number of managers are listed along with descriptions of their background, one of these is Michelle Audette, Global Brand Manager. Such information can be extremely useful in situation of negotiation e.g. identifying an entry point, starting negotiations, introducing a business deal, finding potential candidates for a specific job, or preparing for an attempt to get a job in that company with this person. All this information is readily available - even without having to being referred by contacts and contacts' contacts.

So, in general terms I think it is an excellent tool for preparing yourself before making contact with another important business professional, whatever the situation might be: semi-formal lunch, sales, contractual negotiations, job interviews, trade shows, conferences etc.

It can also be used for gathering HR market intelligence on competitors. You might develop certain aspects of your strategy based on the 'strengths and weaknesses' (/ capabilities) of the key-managers of your largest competitor(s), if you believe that individuals can be directly accredited with the success or failure of that company.

Of course, one should bear in mind that people are likely to present only what they desire should be read by the world, so truthfulness might be scarce in some cases.

A drawback that a friend of mine mentioned was that gossip travels fast in such a forum. I would agree with him: Though good news travels fast, bad news travels faster. So he advised caution, if you use the network for finding a new job. If four people (by referral) find out that an executive from "BIG BIZ A" is looking to switch to "BIGGER BIZ B" then such news will not go unnoticed; then the effect will not simply move like a path through a pyramid, this piece of news might well spread as rings in water.

If you see further alternatives for using LinkedIn, I'd love to have
your comments too!