Chapter 1

McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

RESEARCH IN BUSINESS

Chapter 1

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Learning Objectives

Understand . . .• What business research is and how it differs from business decision support systems and business intelligence systems.

• Trends affecting business research and the emerging hierarchy of business decision makers.

• The distinction between good business research and research that falls short of professional quality.

• The nature of the research process.

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Pull Quote

“Forward-thinking executives recognize that analytics may be the only true source of sustainable advantage since it empowers employees at all levels of an organization with information to help them make smarter decisions.”

Wayne Eckerson,director of research, business applications and

architecture group,TechTarget

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Why Study Business Research?

Business research provides information to guide business decisions

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Research Should Help Business Respond to Change

“Enterprises have long recognized the needto better sense and respond to business change.What’s different today is that ubiquitous accessto information and real-time communicationshave fostered an ‘always on’ business culturewhere decision making has become a ‘just-in-timeprocess.’”Business Performance Management Forum

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Business Research

• A process of determining, acquiring,analyzing, synthesizing, and disseminatingrelevant business data, information, andinsights to decision makers in ways thatmobilize the organization to take appropriate business actions that, in turn, maximize business performance

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Research Should Reduce Risk

The primary purpose of research is to reduce the level of risk of a business decision

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What’s Changing in Business that Influences Research

Critical Scrutiny of Business

Computing Power & Speed

Battle for Analytical

Talent

Factors

Information Overload

Shifting Global

Economics

Government Intervention

Technological

Connectivity

New Research

Perspectives

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Computing Power and Speed

Real-time Access

Lower-cost Data

Collection

Powerful Computatio

n

Better Visualizatio

n ToolsIntegration

of Data

Factors

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Researchers Must Keep Current

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Business Planning Drives Business Research

Organizational Mission

BusinessGoals

BusinessStrategies

BusinessTactics

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Business Decisions and ResearchHäagen-Dazs TacticsSuper premium Dozens of flavorsSmall packagesSignature colors on packagingAvailable in franchise and

grocery stores

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Decision Support Systems

Numerous elements of data organized for retrieval and use in business decision making Stored and retrieved via

Intranets Extranets

Information Sources

Business Intelligence

Systems Ongoing information

collection Focused on events,

trends in micro

and macro-environments

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Sources of Business Intelligence

Business Intelligence

Government/Regulatory

Economic

Competitive

Demographic

Technological Cultural/Social

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Sources of Business Intelligence

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Sources of Business Intelligence

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Sources of Business Intelligence

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Sources of Business Intelligence

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Sources of Business Intelligence

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Sources of Business Intelligence

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Hierarchy of Business Decision Makers

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Can It Pass These Tests? Can information be applied to a critical decision? Will the information improve managerial decision making?

Are sufficient resources available?

Research May Not Be Necessary

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Information Value Chain

Characteristics

Data collection/ transmission

Data interpretation

Models

Decisionsupport systems

Data management

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The Research Process

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Characteristics of Good Research

Clearly defined purposeDetailed research

processThoroughly planned design

High ethical standardsLimitations addressed

Unambiguous presentation

Conclusions justifiedCredentials

Adequate analysis

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Categories of Research

Applied Basic (Pure)

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Types of Studies

Reporting

Explanatory Predictive

Descriptive

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Key Terms

• Management dilemma

• Predictive studies• Pure research• Reporting studies• Return on

Investment (ROI)• Scientific method• Strategy• Tactics

• Applied research• Business

intelligence system (BIS)

• Business research• Control• Decision support

system• Descriptive studies• Explanatory

Studies

McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

ADDITIONAL DISCUSSION OPPORTUNITIESChapter 1

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Snapshot: Mercedes Benz/TNS Infratest

Web offers:Neutrality of moderation

Researcher objectivity

Respondent anonimityTargeted respondent

selectionPicture of a modern brand

Data for critical future decisions

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PicProfile:Role of Cloud Computing

“Today, information is everything. It’s the core of your business and you can’t exist withoutit.”

NTT uses the private cloud for seamless and secure data access worldwide.

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Snapshot: Consultancy Skills Needed

Think Strategically

Insights- and Action-Specialists

Challenge Decision Makers

Advocate Action

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Snapshot: Pattern Thinking at Yum!

Visit seven best-practice companiesObservation, in depth interviews

Pattern ThinkingInsights led to patterns

Apply thinking to restaurantsDynasty Drivers for Yum!

Brands

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PicProfile: Professional Blogs

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PulsePoint: Research Revelations

34 The percent of employees who never consider that their bosses, clients, or colleagues think before posting to a blog, discussion forum, or social network.

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Research Though Stimulators

“This is a fantastic time to be entering the business world, because business is going to change more in the next 10 years than it has in the last 50.”

Bill Gates, entrepreneur and founder Microsoft

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Business Research at Minute Maid

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RESEARCH IN BUSINESS

Chapter 1

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Photo Attributions

Slide Source4 Courtesy of JRP Marketing Research Inc.7 Courtesy of Greenfield Online, Inc.

10 Courtesy of Tom HC Anderson, Next Gen Market Research

12 Ingram Publishing /SuperStock

25 Courtesy of TNS Infratest GmbH and Mercedes-Benz

30 Courtesy of TNS Infratest GmbH and Mercedes-Benz

31 Courtesy of NTT Communications

32 ©Andersen Ross/Blend Images LLC

33 Copyright ©FoodCollection

34Courtesy of Tom HC Anderson, Next Gen Market Research

37 Courtesy of Minute Maid