Chapter 1

RESEARCH IN BUSINESS

McGraw-Hill/Irwin

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

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 need

to better sense and respond to business change.

Whats different today is that ubiquitous access
to information and real-time communications
have fostered an always on business culture
where decision making has become a just-in-time
process.

Business Performance Management Forum

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Business Research
A process of determining, acquiring,
analyzing, synthesizing, and disseminating
relevant business data, information, and
insights to decision makers in ways that
mobilize 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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Whats Changing in Business

that Influences Research
New
New Research
Research
Perspectives
Perspectives
Computing
Computing
Power
Power &
&
Speed
Speed
Battle
Battle for
for
Analytical
Analytical
Talent
Talent

Information
Overload

Factors
Factors

Technological
Technological
Connectivity
Connectivity
Shifting
Shifting
Global
Global
Economics
Economics
Critical
Scrutiny of
Business

Government
Government
Intervention
Intervention
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Computing Power and Speed

Lower-cost
Data
Collection
Integration
Integration of
of
Data
Data

Better
Better
Visualization
Visualization
Tools
Tools

Factors
Factors
Real-time
Real-time
Access
Access

Powerful
Powerful
Computation
Computation
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Researchers Must Keep Current

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Business Planning Drives

Business Research

Organizational
Mission

Business
Goals

Business
Strategies

Business
Tactics

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Business Decisions and Research

Hagen-Dazs Tactics
Super premium
Dozens of flavors
Small packages
Signature colors on packaging
Available in franchise and

grocery stores

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Information Sources
Decision Support
Systems
Numerous elements of

data organized for

retrieval and use in
business decision
making
Stored and retrieved via
Intranets
Extranets

Business
Intelligence Systems
Ongoing information
collection
Focused on events,
trends in micro and
macro-environments

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Sources of Business Intelligence

Government/
Regulatory

Demographic

Competitive

Economic

Business
Intelligence

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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Research May Not Be Necessary

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

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Information Value Chain

Data collection/
transmission

Data
management
Characteristics

Decision
support systems

Data
interpretation
Models

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The Research
Process

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Characteristics of
Good Research
Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research process
process
Thoroughly
Thoroughly planned
planned design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous presentation
presentation
Conclusions
Conclusions justified
justified
Credentials
Credentials
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Categories of Research

Applied

Basic (Pure)

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Types of Studies

Reporting

Descriptive

Explanatory

Predictive

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Key Terms
Applied research
Business intelligence
system (BIS)
Business research
Control
Decision support
system
Descriptive studies
Explanatory Studies

Management dilemma
Predictive studies
Pure research
Reporting studies
Return on Investment
(ROI)
Scientific method
Strategy
Tactics
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Chapter 1
ADDITIONAL DISCUSSION OPPORTUNITIES

McGraw-Hill/Irwin

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

Snapshot: Mercedes Benz/TNS Infratest

Web
Web offers:
offers:
Neutrality
Neutrality of
of moderation
moderation
Researcher
Researcher objectivity
objectivity
Respondent
Respondent anonimity
anonimity
Targeted
Targeted respondent
respondent selection
selection
Picture
Picture of
of aa modern
modern brand
brand
Data
Data for
for critical
critical future
future decisions
decisions
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PicProfile:
Role of Cloud
Computing

Today, information is
everything. Its the core
of your business and
you cant exist without
it.
NTT uses the private
cloud for seamless and
secure data access
worldwide.
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Snapshot: Consultancy Skills Needed

Think
Think Strategically
Strategically

InsightsInsights- and
and Action-Specialists
Action-Specialists

Challenge
Challenge Decision
Decision Makers
Makers

Advocate
Advocate Action
Action
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Snapshot: Pattern Thinking at Yum!

Visit
Visit seven
seven best-practice
best-practice companies
companies
Observation,
Observation, in
in depth
depth interviews
interviews
Pattern
Pattern Thinking
Thinking
Insights
Insights led
led to
to patterns
patterns
Apply
Apply thinking
thinking to
to restaurants
restaurants
Dynasty
Dynasty Drivers
Drivers for
for Yum!
Yum! Brands
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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Chapter 1
RESEARCH IN BUSINESS

McGraw-Hill/Irwin

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

Photo Attributions

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