Research in Computing

Chapter 1: The Role of Business Research

1.1 Introduction to Business Research

• To make an informed decision to address key issues faced by a competitive business we

need information.

• Appropriate information is given to us by Research.

• Research can lead to

innovation in the form of new products,

improvements in existing goods and services,

or enhancements in employee relationships.

1.2 The Nature of Business Research

• Business research covers a wide range of phenomena.

• To make positive changes in any current scenario or circumstance, you need to ask the
right questions, and answer them.

• All questions require information about how the environment, employees, customers, or
the economy will respond to any new decision.

• Research is one of the principal tools for answering these practical questions.
• Even though researchers in different functional areas may investigate different
phenomena, they are similar to one another because they share similar research methods.
• Every business issue ultimately boils down to an information problem.

• Can the right information be delivered?

• The ultimate goal of research is to supply accurate information that reduces the
uncertainty in managerial decision making.

• Relying on decision making without research is like betting.

• Decisions are made without Research for various reasons, including cost considerations,
insufficient time to conduct research, or management’s belief that they know enough.

• Occasionally there are successes, but in the long run, intuition without research leads to
losses.
• Business research helps decision makers shift from intuitive information gathering to
systematic and objective investigation.
Business Research Defined
Business research is

the application of the scientific method

in searching for the truth about business phenomena.

These activities include

defining business opportunities and problems,

generating and evaluating alternative courses of action,
and monitoring employee and organizational performance.
• Business research is more than conducting surveys.

• This process includes

idea and theory development,
problem definition,
searching for and collecting information,
analysing data,
and communicating the findings and their implications.

• This definition suggests that business research information is not intuitive or haphazardly
gathered.

• Literally, research (re-search) means “to search again.”

• The term connotes patient study and scientific investigation wherein the researcher takes
another, more careful look at the data to discover all that is known about the subject.

• Ultimately, all findings are tied back to the underlying theory.

• The definition also emphasizes, through reference to the scientific method, that any
information generated should be accurate and objective

• In other words, research is not performed to support preconceived ideas but to test them.

• The researcher must be personally detached and free of bias in attempting to find truth. If
bias enters the research process, the value of the research is considerably reduced.
• Business research is designed to facilitate the managerial decision-making process for all
aspects of the business: finance, marketing, human resources, and so on.

• Business research is an essential tool for management in virtually all problem-solving and
decision-making activities.

• By providing the necessary information on which to base business decisions, research can
decrease the risk of making a wrong decision in each area.

• However, it is important to note that research is an aid to managerial decision making,

never a substitute for it.
Applied and Basic Business Research

• Basic business research (aka Pure Research) is conducted without a specific decision in
mind, and it usually does not address the needs of a specific organization.

• It attempts to expand the limits of knowledge in general, and as such it is not aimed at
solving a particular pragmatic problem.

• Basic research can be used to test the validity of a general business theory (one that
applies to all businesses) or to learn more about a particular business phenomenon.

• For instance, how can managers best encourage workers to dedicate themselves toward
the organization’s goals?

• This basic research does not examine the problem from any single organization’s
perspective.

• Basic research often provides the foundation for later applied research
• Applied Research is conducted when a decision must be made about a specific real-life
problem
i. Should McDonalds add Italian pasta dinners to its menu?
Business research said it should not.
ii. Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?
Research showed Crest Whitestrips would sell well at a retail price of $44.
The Scientific Method

• The scientific method is the way researchers go about using knowledge and evidence to
reach objective conclusions about the real world.
• In the scientific method, there are multiple routes to developing ideas.

• When the ideas can be stated in researchable terms, we

reach the hypothesis stage.

• The next step involves testing the hypothesis against

empirical evidence (facts from observation or
experimentation).

• The results either support a hypothesis or do not support

a hypothesis

• From these results, new knowledge is generated.

• In basic research, testing these prior conceptions or hypotheses and then making
inferences and conclusions about the phenomena leads to the establishment of general
laws about the phenomena.

• Use of the scientific method in applied research ensures objectivity in gathering facts
and testing creative ideas for alternative business strategies.
 1.3 Managerial Value of Business Research

• The prime managerial value of business research is that it provides information that
improves the decision-making process.

• The decision-making process associated with the development and implementation of a

business strategy involves 4 interrelated stages:
1. Identifying problems or opportunities
2. Diagnosing and assessing problems or opportunities
3. Selecting and implementing a course of action
4. Evaluating the course of action

• Business research, by supplying managers with pertinent information, may play an

important role by reducing managerial uncertainty in each of these stages.
STAGE 1: Identifying Problems or Opportunities

• Before any strategy can be developed, an organization must determine where it wants to
go and how it will get there.

• Business research can help managers plan strategies by determining the nature of
situations or by identifying the existence of problems or opportunities present in the
organization.

• Business research may be used as a scanning activity to provide information about what is
occurring within an organization or in its environment.

• The mere description of some social or economic activity may familiarize managers with
organizational and environmental occurrences and help them understand a situation.

• Once business research indicates a problem or opportunity, managers may feel that the
alternatives are clear enough to make a decision based on their experience or intuition.

• However, often they decide that more business research is needed to generate additional
information for a better understanding of the situation.
STAGE 2: Diagnosing and Assessing Problems or Opportunities

• After an organization recognizes a problem or identifies a potential opportunity, business

research can help clarify the situation.

• Managers need to gain insight about the underlying factors causing the situation.

• If there is a problem, they need to specify what happened and why.

• If an opportunity exists, they may need to explore, refine, and quantity the opportunity.

• If multiple opportunities exist, research may be conducted to set priorities.

STAGE 3: Selecting and Implementing a Course of Action

• After the alternative courses of action have been clearly identified, business research is
often conducted to obtain specific information that will aid in evaluating the alternatives
and in selecting the best course of action.

• Objective information generated by business research to forecast environmental

occurrences may be the foundation for selecting a particular course of action.

• Even the best plan is likely to fail if it is not properly implemented.

• Business research may be conducted to indicate the specific tactics required to implement
a course of action
STAGE 4: Evaluating the Course of Action

• After a course of action has been implemented, business research may serve as a tool to
tell managers whether or not planned activities were properly executed and if they
accomplished what they were expected to accomplish.

• In other words, managers may use evaluation research to provide feedback for evaluation
and control of strategies and tactics.

• Evaluation research is the formal, objective measurement and appraisal of the extent a
given activity, project, or program has achieved its objectives.

• In addition to measuring the extent to which completed programs achieved their

objectives or whether continuing programs are presently performing as projected,
evaluation research may provide information about the major factors influencing the
observed performance levels.
• Performance-monitoring research is a specific type of evaluation research that
regularly, perhaps routinely, provides feedback for the evaluation and control of recurring
business activity.
1.4 When Is Business Research Needed?
The determination of the need for research centers on
(1)time constraints,
(2)the availability of data,
(3)the nature of the decision to be made, and
(4)the value of the research information in relation to costs.
1.5 Business Research in the Twenty-First Century

• Business research, like all business activity, continues to change.

• Changes in communication technologies and the trend towards a global marketplace have
played a large role in many of these changes.

Communication Technologies
• Virtually everyone is “connected” today and the way information is exchanged, stored,
and gathered has been revolutionized completely
• The speed with which information can be exchanged has also increased tremendously.

• Internet connections are now wireless, so one doesn’t have to be tethered to a wall to
access the World Wide Web.
• Our mobile phones and handheld data devices can be used not only to converse, but also
as a means of communication that can even involve business research data.

• In many cases, technology also has made it possible to store or collect data for lower costs
than in the past.

• Changes in computer technology have made for easier data collection and data analysis.

• Thus, there is less need for the time and expense associated with regular mail survey
approaches.

• Furthermore, the computing power necessary to solve complicated statistical problems is

now easily accessible.
• Today, even the most basic laptop computers can solve complicated statistical problems
involving thousands of data points in practically a nanosecond
Global Business Research

• Like all business activities, business research has become increasingly global and firms
operate with very few geographic boundaries.

• Some companies have extensive international research operations.

• Companies that conduct business in foreign countries must understand the nature of those
particular markets and judge whether they require customized business strategies.

• Even companies that produce brands that are icons in their own country are now doing
research internationally.
• The internationalization of research places greater demands on business researchers and
heightens the need for research tools that allow us to cross-validate research results,
meaning that the empirical findings from one culture also exist and behave similarly in
another culture.
End of Chapter 1