Chapter 1

R E SE ARCH IN BUSINE SS

McGraw-Hill/Irwin

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

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 Research
Perspectives
Computing
Power &
Speed
Battle for
Analytical
Talent

Information
Overload

Factors

Technological
Connectivity
Shifting
Global
Economics
Critical
Scrutiny of
Business

Government
Intervention
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Computing Power and Speed

Lower-cost
Data
Collection
Integration of
Data

Better
Visualization
Tools

Factors
Real-time
Access

Powerful
Computation
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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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The Research
Process

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

From Text 2

Exploratory Research:
Primary stage of research
The researchers do not know much about the situation at hand.
Searching facts through 1) reviewing literature,
2) asking questions to knowledgeable persons
3) Case study and 4) Content analysis.

Descriptive Research
Second stage of research.
Major purpose is to give a description of state of affairs
as it exists.
Population census study, demographic study and so on.
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According to one school

Historical Research
It gives description of what was existed.
It investigates records, analyses and interpret the
past events to discover generalizations to know the past,
understand the present and predict the future.

Diagnostic Research
It controls the problem by finding out the cause and effect
relationship.
It diagnoses the problem and the cause underlying it.
It prescribes the treatment for the solution of the problem.
It uses very small samples.
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According to one school

Experimental Research
This describes what will happen if certain variables are
carefully controlled or manipulated.
The Focus is on the variable relationships.
Cause and effect relationship.

Simulative Research
To predict changes in the whole system.
It involves the construction of an artificial environment within
Which relevant information and data can be generated.
Helps to build models for understanding future conditions.

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According to another school

Fundamental Research
It is intended to expand the boundaries of knowledge itself.
It is a formal and systematic process of deductive inductive
analysis leading to development of theories.
Deductive goes from general knowledge to specific knowledge.
Inductive goes from specific to general knowledge.

Applied Research
It applies theories developed from fundamental research to
the solution of the problem.
It includes the use of sampling techniques and subsequent
inferences about the target population.
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According to another school

Action Research
It is in between fundamental research and applied research.
Its purpose is to acquire new skills and techniques.
It involves close collaboration between practitioners
and researchers.

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