BUSINESS RESEARCH METHOD

DR RAJESHWARI PATIL
COURSE DESCRIPTION:

 Creation of ability as well as willingness for evidence based thinking

 Course in BRM is covered in semester I, its applications continue throughout the
PGDM programme in helping managers in analysis and/or planning.
 The course is essential as it would enhance the quality of projects that the students
would be undertaking during their summer internship.
COURSE OBJECTIVES:

 To understand the concept and process of business research in business environment.

 To know the appropriate use of tools and techniques for exploratory, conclusive and
causal research.
 To understand the concept of measurement in empirical systems.
 To understand the concept of sampling and its types and techniques.
 To use appropriate statistical techniques for analysis of research data.
S.No.s Topic Name
1 1.1 Research:
Definition, Why study Business Research? What is good research? Exhibit scientific temper in the practice of
Decision Support System, Business Intelligence, management & increasingly look for evidence
Research applications in functional areas of Business, Emerging trends in Business research before jumping to conclusions
2 1.2 Language of Research: Understand the applicability of Concepts
Concept, construct, proposition, hypothesis, research question, constant, variable Illustrate steps involved in conducting business
1.3 Steps in Research Process: research & develop research design appropriate in a
From Problem Definition to Report Writing given situation.
3 1.4 Management-Research Question Hierarchy:
Formulation of Research Problem Learn to ask the Right Question to find the right
Management Question solution to the problem
Research Question
Investigation Question
1.5 Research Proposal:
4 Elements of a Research Proposal Draft & evaluate business research proposals
Drafting a Research Proposal
Evaluating a research proposal
WHAT IS RESEARCH

 Your Opinion
WHAT IS RESEARCH

Research is "creative and systematic work undertaken to increase the stock of knowledge, including
knowledge of humans, culture and society, and the use of this stock of knowledge to devise new
applications." It involves the collection, organization, and analysis of information to increase our
understanding of a topic or issue.

But then what is the basis of knowledge?

WHAT IS RESEARCH

 Let’s take a look at what people base their knowledge on in day-to-day life.
 Intuition or belief
 Consensus
 Authority
WHAT IS RESEARCH

 Let’s take a look at what people base their knowledge on in day-to-

day life.
 Intuition or belief
 Consensus
 Authority
 Observation is a better foundation of knowledge than the previous
ones, but still not good enough. This is because people just aren’t very
good at observing.
WHAT IS RESEARCH

 We need the scientific method to make sure our attempts to explain how the world works result in valid
knowledge.
 Opinions, beliefs, casual observation and informal logic won’t do; they are too subjective and too susceptible to
error.
 The scientific method is based on systematic observation and consistent logic.
 Applying the scientific method increases our chances of coming up with valid explanations.
WHAT IS RESEARCH

 The scientific method can be described according to six principles.

 If our study meets these principles, then it can be considered scientific
 empirically testable
 Replicability
 Objective
 Transparency
 Falsifiable
 logical consistency
WHAT IS RESEARCH

 Discuss
 Lets consider this statement: when a cat crosses your path, it is bad luck…….
 UNIT 1 : 1.1 RESEARCH
Definition

 Search of new knowledge that can be added to the existing body of knowledge.

 It is a scientific art of investigation where the researcher carries out the search in quest of knowledge.

 According to Redman and Mory, Research is a systematized effort to gain new knowledge

 Business research as defined by Donald Cooper, “is the process and the tool needed to reduce risk in management
decision making. Business research is a process of planning, acquiring, analysing and disseminating relevant data,
information and insights to the decision maker in ways that mobilize the organization to take appropriate actions that,
in turn, maximise performance.
 Business research methods include many ways of gathering information about an industry, its competition or the
opportunities available that are relevant to conducting research. 
 A broad definition of research is given by Martyn Shuttleworth – “In the broadest sense of the word, the definition

of research includes any gathering of data, information and facts for the advancement of knowledge.”

 Another definition of research is given by Creswell who states that – “Research is a process of steps used to

collect and analyze information to increase our understanding of a topic or issue”. It consists of three steps: Pose a
question, collect data to answer the question, and present an answer to the question.
 WHAT IS RESEARCH
 So to summarize,
 Research is adding to the existing body of knowledge or find something new.
 Knowledge cannot be based on Intuition, Belief, Authority or consensus
 Knowledge should be based on the scientific method
 It requires that we formulate hypotheses that are:
 empirically testable: meaning the hypothesis can be supported or contradicted by observations;
 replicable: meaning the hypothesis can be tested repeatedly;
 objective: meaning the hypothesis can be tested independently by others;
 transparent: meaning the hypothesis and results are publicly shared so they can be tested by anyone;
 falsifiable: meaning that finding contradictory evidence is a possibility;
 logically consistent: meaning that the hypothesis is internally consistent and the conclusion to support or reject the
hypothesis, based on the observations, is logically sound.
WHY RESEARCH

Stéphane Tarnier (1828–1897)

WHY RESEARCH

Willis Haviland Carrier

WHY RESEARCH
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WHY RESEARCH

NYLON
WHY RESEARCH
WHY RESEARCH
WHY STUDY BUSINESS RESEARCH-TO SUMMARIZE

 Business research can help you determine what potential customers want,

 which can guide you toward development of better products and services.

 It can keep you abreast of what your competition is doing and help you spot marketplace and industry trends.

 Research lets you analyze how your departments are performing, and then compare their performance against

projections to determine if you need to make adjustments.

WHAT IS GOOD RESEARCH?

 Generates dependable data and are reliable for decision making.

 Follows the standard of scientific method: Systematic, empirically(by means of observation or experience rather than
theory or pure logic.) based procedures for generating replicable research
 Well defined purpose.
 Detailed research process
 High ethical issues applied
 Adequate analysis for decision maker’s needs
 Findings presented unambiguously
 Conclusion Justified
 Researcher’s experience reflected
 DECISION SUPPORT SYSTEM

A decision support system (DSS) is a computerized program used to support

determinations, judgments, and courses of action in an organization or a business.

A decision support system is that system which helps the management in taking the

business decisions.

A DSS sifts through and analyzes massive amounts of data, compiling comprehensive

information that can be used to solve problems and in decision-making.

 DECISION SUPPORT SYSTEM

Factors to be taken into consideration while making managerial decisions.

1. Data

2. Decision rules

3. Mathematical models

4. Managerial knowledge

5. Human judgement.
 DECISION SUPPORT SYSTEM

Use of DSS –some examples

1. Common Day-to-Day Decision Support System

i. GPS route planning determines the fastest and best route between two points by analyzing and
comparing multiple possible options.
ii. Many GPS systems also include traffic avoidance capabilities that monitor traffic conditions in
real time, allowing motorists to avoid congestion.
iii. Farmers use crop-planning tools to determine the best time to plant, fertilize and reap. Medical
diagnosis software that allows medical personnel to diagnose illnesses is another example. 
 DECISION SUPPORT SYSTEM

Use of DSS –some examples

2. Decision Support System Examples That Use Historical Data

i. Descriptive analytics: Metrics such as sales results, inventory turnover and revenue growth.

ii. Diagnostic analytics: Diagnostic information that digs a bit deeper to reveal results and
explains reasons for past performance as measured by descriptive analytics.
iii. Business intelligence (BI): Although largely based on historical data, BI solutions allow users
to develop and run queries that are used to guide and support decision-making.
 DECISION SUPPORT SYSTEM
Case in Point: DSS in Agriculture.

Agriculture is the mainstay in Indian Economy and only sustainable agriculture is likely to provide the long-term benefits
required to achieve development and scarcity improvement. The research and advancements in agriculture have made
available huge amounts of data in different areas of agriculture.

Challenge: Knowledge Gap about

Productivity The output of agricultural produce
Stability The degree to which productivity remains constant.
The ability of a system to maintain its productivity when subjected to stress and
Sustainability (now Resilience)
shock.

Sustainable Agriculture production and processing systems have become more complex with involvement of biological,
chemical, physical processes such as soil, water, climatic scenarios and crop management practices respectively
 DECISION SUPPORT SYSTEM
Case in Point: DSS in Agriculture.

 Crop productivity being one such activity, it has given considerably good results with the use of DSS. The DSS
named as “Crop Environment Resource Synthesis (CERES) -Wheat”, is a part of DSSAT which was successfully
applied to simulate the crop growth and development of wheat under variable climatic, water and nitrogen levels in
semi-arid and subtropical regions of Punjab for five cropping seasons from 2000-2001 through 2004- 2005.

 The model results concluded that grain yield and water productivity are affected by water holding capacity of the
soils.

 This model was then extended with Cropping System Model (CSM) named as “DSSAT-CSMCERES-Wheat 4.0”.
 It was calibrated and validated on 13 different datasets of different farms of Ludhiana and Phillaur, Punjab collected
between 2002-2006 to predict and increase crop yield and for irrigation scheduling.

 The model helped for estimating crop yield, evapotranspiration, crop water productivity (CWP) and Irrigation Water
Productivity (IWP)
 DECISION SUPPORT SYSTEM
Case in Point: DSS in Agriculture.
 In order to increase agricultural production with the
help of precision farming technologies, the Indian
state of Maharashtra turns to drones.

Predict help to gain insight into plant health, soil

crop yield conditions and can help to predict crop yield
help in identifying stressed plants
Remote prevent losses from crop disease, optimise
sensing irrigation and reduce the impact of climate
data change and unpredictable seasonal variations.

Case in Point: DSS in Agriculture.

DECISION SUPPORT SYSTEM
Assignment

1. Read about DSS in Agriculture in India .

2. Identify the challenges in implementing drones to modernise agriculture.

3. You are entrepreneur with interest in Agriculture and high business acumen, do you see a business
opportunity to help small farmers to modernise agriculture using technology
BUSINESS INTELLIGENCE

 The term Business Intelligence (BI) refers to technologies, applications and practices for the collection,
integration, analysis, and presentation of business information.
 The purpose of Business Intelligence is to support better business decision making. Essentially, Business
Intelligence systems are data-driven Decision Support Systems
 Business Intelligence systems provide historical, current, and predictive views of business operations, most often
using data that has been gathered into a data warehouse or a data mart and occasionally working from operational
data. 
 Business intelligence is defined as a process of collecting and processing business information to derive insights
and make profitable business decisions.
BUSINESS INTELLIGENCE
 It comprises of collection, analysis, and presentation of business related information
and is an outcome of business research which enables smart business actions.
 For example, A restaurant owner wants to understand the preference of his customers
about the type of cuisine they like, and thus evaluate the demand for a particular
cuisine. A survey is conducted to collect feedback on various types of cuisines
preferred. Based on this information, the owner can evaluate which cuisine is in
demand amongst his target audience and help him to make a business strategy
accordingly.
 The goal of business intelligence is to collect information and analyze it, to support
an organization to make better business decisions.
BUSINESS INTELLIGENCE

  The following are some of the ways organizations are learning to use business
intelligence:
 Analysing customer behaviours, buying patterns and sales trends
 Measuring, tracking and predicting sales and financial performance
 Tracking the performance of marketing campaigns
 Improving delivery and supply chain effectiveness
 Web and e-commerce data analytics
 Customer relationship management
 Risk analysis
 Strategic value driver analysis
BUSINESS INTELLIGENCE

Multi-nationals and corporations have been using BI tools for years.

1. Netflix Uses Business Intelligence to Improve Recommendations. 
2. YES BANK Improves Internal Communications. 
3. American Express Detects Fraud with BI Software.

7 unexpected examples of Business Intelligence tools

4. BI for Online courses- Coursera
5. Travel Industry- MakemyTrip, Expedia,
6. Video games are also using BI:  video game producers, and platform manufacturers, are using BI to help gain insights into their user's
habits online. 
7. Coffee shops, like Starbucks, are taking advantage of BI : Through their Loyalty Card Program, they are able to collate and analyze
masses of data about their customers. 
 RESEARCH APPLICATION

 SOME COMMONLY RESEARCHED AREAS IN BUSINESS

 1. Employee behaviors such as performance, absenteeism, and turnover.
 2. Employee attitudes such as job satisfaction, loyalty, and organizational commitment.
 3. Supervisory performance, managerial leadership style, and performance appraisal systems.
 4 Employee selection, recruitment, training, and retention.
 5. Validation of performance appraisal systems.
 6. Human resource management choices and organizational strategy.
 7. Evaluation of assessment centers.
 8. The dynamics of rating and rating errors in the judgment of human performance.
 9. Strategy formulation and implementation.
 10. Just‐in‐time systems, continuous‐improvement strategies, and production efficiencies.
 RESEARCH APPLICATION
 SOME COMMONLY RESEARCHED AREAS IN BUSINESS
 11. Updating policies and procedures in keeping with latest government regulations and organizational changes.
 12. Organizational outcomes such as increased sales, market share, profits, growth, and effectiveness.
 13. Consumer decision making.
 14. Customer relationship management.
 15. Consumer satisfaction, complaints, customer loyalty, and word‐of‐mouth communication.
 16. Complaint handling.
 17. Delivering and performing service.
 18. Product life cycle, new product development, and product innovation.
 19. Market segmentation, targeting, and positioning.
 20. Product image, corporate image. 21. Cost of capital, valuation of firms, dividend policies, and investment decisions. 22. Risk
assessment, exchange rate fluctuations, and foreign investment. 23. Tax implications of reorganization of firms or acquisition of
companies. 24. Market efficiency. 25. Banking strategies. 26. Behavioral finance: overconfidence, bounded rationality, home‐bias.
27. Executive compensation. 28. Mergers and acquisitions. 29. Portfolio and asset management. 30. Financial reporting. 31. Cash
flow accounting. 32. Accounting standards. 33. Outsourcing of accounting. 34. Sustainability reporting
 RESEARCH APPLICATION

 SOME COMMONLY RESEARCHED AREAS IN BUSINESS

 21. Cost of capital, valuation of firms, dividend policies, and investment decisions.
 22. Risk assessment, exchange rate fluctuations, and foreign investment.
 23. Tax implications of reorganization of firms or acquisition of companies.
 24. Market efficiency.
 25. Banking strategies.
 26. Behavioral finance: overconfidence, bounded rationality, home ‐bias.
 27. Executive compensation.
 28. Mergers and acquisitions.
 29. Portfolio and asset management.
 30. Financial reporting.
 RESEARCH APPLICATION IN FUNCTIONAL AREAS OF BUSINESS
 “Functional Areas” is defined as the grouping of activities or processes on the basis of their need and wants in
accomplishing one or more tasks.
 Human Resource
 Marketing/Promotion
 Production
 Sales
 Customer Service Support
 Accounting and Finance
 Distribution
 Research and Development
 Administrative and Management
 Operations
RESEARCH APPLICATION IN FUNCTIONAL AREAS OF BUSINESS

 Discussion
EMERGING TRENDS IN BUSINESS RESEARCH

 Data volumes are growing across the board, with organizations seeking to tap new sources generated by social
media and online customer behavior. This trend is spurring tremendous interest in better access and analysis of the
variety of information available in unstructured or semi-structured content sources.