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Impact of Research on Business Decisions

1) Research is essential for companies to collect facts about customers, employees, and competitors to make better managerial decisions. 2) Marketing research helps reduce risks and uncertainties around decisions to help achieve marketing objectives. 3) Marketing research provides relevant information to support effective marketing manager decisions around opportunities, markets, programs, and performance.

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100% found this document useful (1 vote)
42 views26 pages

Impact of Research on Business Decisions

1) Research is essential for companies to collect facts about customers, employees, and competitors to make better managerial decisions. 2) Marketing research helps reduce risks and uncertainties around decisions to help achieve marketing objectives. 3) Marketing research provides relevant information to support effective marketing manager decisions around opportunities, markets, programs, and performance.

Uploaded by

vaibhav
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ROLE OF RESEARCH IN MAKING DECISION

Introduction
Research is essential to collect facts and statistics about a company's customers,
employees and competitors. On the basis of these numbers, companies are able to
make better managerial decisions. The collected statistics are organized into
reports and the management team uses them to take action. A good research
mechanism is essential, irrespective of the size of the company and its client base.
Research is imperative for staying competitive in the market.

Business management is about decision making. Every decision is invariably


surrounded by uncertainties and, therefore, risks.

Marketing research helps to reduce such risks & uncertainties & increase the
probability that the decisions which management has to take will help attain the
organization marketing objectives.

The task of marketing research (MR) is to provide management with relevant,


accurate, reliable, valid, and current information. Competitive marketing
environment and the ever-increasing costs attributed to poor decision making
require that marketing research provide sound information. Sound decisions are not
based on gut feeling, intuition, or even pure judgment.

Marketing managers make numerous strategic and tactical decisions in the process
of identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and
implementing marketing programs, marketing performance, and control. These
decisions are complicated by interactions between the controllable marketing
variables of product, pricing, promotion, and distribution. Further complications

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are added by uncontrollable environmental factors such as general economic


conditions, technology, public policies and laws, political environment,
competition, and social and cultural changes. Another factor in this mix is the
complexity of consumers. Marketing research helps the marketing manager link
the marketing variables with the environment and the consumers. It helps remove
some of the uncertainty by providing relevant information about the marketing
variables, environment, and consumers. In the absence of relevant information,
consumers' response to marketing programs cannot be predicted reliably or
accurately. Ongoing marketing research programs provide information on
controllable and non-controllable factors and consumers; this information enhances
the effectiveness of decisions made by marketing managers.

Traditionally, marketing researchers were responsible for providing the relevant


information and marketing decisions were made by the managers. However, the
roles are changing and marketing researchers are becoming more involved in
decision making, whereas marketing managers are becoming more involved with
research. The role of marketing research in managerial decision making is
explained further using the framework of the "DECIDE" model

The DECIDE model conceptualizes managerial decision making as a series of six


steps. The decision process begins by precisely defining the problem or
opportunity, along with the objectives and constraints. Next, the possible decision
factors that make up the alternative courses of action (controllable factors) and
uncertainties (uncontrollable factors) are enumerated. Then, relevant information
on the alternatives and possible outcomes is collected. The next step is to identify
and select the best alternative based on chosen criteria or measures of success.
Then a detailed plan to develop and implement the alternative selected is

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developed and put into effect. Last, the outcome of the decision and the decision
process itself are evaluated

Significance
A business is able to make knowledgeable decisions because of research. In the
research process, the company is able to obtain information about key business
areas, analyze it, develop a strategy and distribute business information. Reports,
provided to the top management, often include information on consumer and
employee preferences and all the available routes for sales, marketing, finance and
production. Management uses this information to decide the best strategy.
Research is a prerequisite at all stages and phases of business operations. Initial
research is required to gauge whether getting into the given type of business would
be profitable and whether there is demand for the proposed product.
Function
By conducting business research, the organization ascertains what its customers
want and then takes steps to prepare a product meeting those desires. Research also
helps determine whether a product is accepted in the market. Research aids
expansion into new markets.
Methods of Data Collection
There are two ways organizations typically collect data.
One is primary data collection from your immediate consumers, who provide
feedback on your products. You can also invite customers to offer opinions on
future products. To gain this information, an interviewer asks the customer to
provide views on how the company can modify the existing product to satisfy his

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needs better. The interviewer uses surveys and questionnaires to collect and record
data. This method is helpful for gaining insight about a company's particular
merchandise.

The second method is secondary data collection, which uses data that has already
been printed over the Internet and in magazines and journals. This is
predominantly useful in gauging the broad market scenarios.

Consideration a Consultant

Conducting research involves cost and time. The organization must weigh the pros
and cons before hiring consultants to conduct research. Consultants must be made
fully aware of what the organization is looking for from the research.

Advantages

The primary benefit to business research is that the organization is able to learn
more about consumer choices and preferences. Research provides information on
the product features that lure customers and flaws in the product or marketing that
contribute to slow sales. Research helps the organization fix problems and cash in
on the strengths. Research also contributes to a company's ability to clearly
identify the customer demographics and target demographic, including age, gender,
and monthly income of the household and educational levels. Research mitigates
business risks and can help increase demand and sales.

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Importance of Research
Businesses conduct research for many reasons, such as gathering crucial
information about consumers and business customers. The key function of
management is take decisions and without help of the research and analysis of
present situation and future forecasting, decisions may not be effective. So research
helps to take right decisions. Based on research, management can make intelligent
and well informed decisions

Businesses use research to ascertain the success of their advertising. For instance, a
dairy manufacturer may want to find out what percentage of the people saw its
latest TV commercial. The dairy manufacturer may find that more individuals
become aware of its advertising the longer the TV ad runs. The company may
decide to run its TV ads at different times if few people have seen the ads. A
business can make well-informed decisions due to research. In the research
process, the business will be able to acquire details about key business areas,
analyze it, create a strategy and distribute business information. Reports, presented
to the top management, often contain details on consumer and employee
preferences and all the available channels for sales, marketing, finance and
production. Management makes use of these details to determine the best strategy.
Research is a necessity at all stages and phases of business operations. Initial
research is needed to evaluate whether getting into the given kind of business

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would be profitable and whether there exists demand for the proposed product.
Regarding the staff, a correctly carried out research can uncover important details
on their satisfaction quotient, the difficulties experienced by them and how the
problems related to relationships at the workplace could be handled. An analysis
into the results would allow the management to bring about changes for the all
round effective functioning of the organization and its employees. The workers can
be trained and coached in line with the needs. This would help personal as well as
professional development improving overall organizational performance.

Research is important for managerial decision making. All strategic business areas
are analyzed and evaluated; then techniques for more efficient procedures are
created. All businesses usually have many ways of doing an activity. Through
proper research, the organization will be able to pick the most effective, productive
and profitable one. Research could possibly be applied to marketing, production,
finance, IT and Human resources. Research can answer questions for various
problems, from getting a grip on industry trends, identifying new products to
produce and deliver to the market, or deciding on which site to locate an outlet, to
better understanding what it needs to fulfill customer demands. Research can also
help evaluate if a product is accepted in the market. Research aids expansion into
new markets.

Research helps in testing the potential success of new products. Businesses have to
understand what kinds of products consumers would like before they market them.
For instance, a restaurant may in the beginning, interview focus groups to test
types of burgers. The focus groups will probably include small teams of
consumers. The goal of the focus group may be to figure out which burger
customers prefer. Ultimately, the company may test the burgers through surveys
with larger groups of people. The above points state the importance of research in

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business decision making. Research is necessary to gather facts and statistics with
regards to a companys customers, employees and competitors. Based on these
numbers, businesses are able to make better managerial decisions.

Study of decision-making should concentrate on analyzing three areas: the process


by which decisions are made; the distribution of power; and the assumptive worlds
of key participants in the decision-making process. In terms of the process, Palmer
and Short (1994) argue that decision-making is often characterized by a number of
stages; and R&D can play a part at each stage (see also Rist 1996). For example,
R&D can be used at the problem identification and agenda setting stage; in the
subsequent phase of deciding on the course of action to be adopted; and at the
monitoring and evaluation stage, which provides opportunities for program fine-
tuning and adjustment to changing circumstances. Robinson (1998) has argued that
there are a variety of decision making processes, which can incorporate R&D very
differently. For example, pragmatic decision-making characterized by no
systematic consultation or research (although R&D may be used in an ad hoc way
to support one stance or denigrate another) is contrasted by Robinson with other
decision-making processes, including the systematic investigation of existing R&D
(and even commissioning of more). Many of the decision-makers consulted during
the empirical investigations identified the complex, changing and time-pressured
nature of their operating environment as an important factor in not directly
considering R&D evidence before taking decisions. The timeframes of research
were seen to outlast those of policy-making, so that results were often too late.
Relatedly, there had been substantial staff turnover, reducing the impact of
accumulated knowledge, skills and attitudes (Selby Smith et al 1998). Secondly,
the distribution of power among the key stakeholders who participate in the
decision-making arrangements can affect the likelihood of R&D influencing

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decisions, especially if the stakeholders vary in their attitudes to R&D and its
potential use in decision-making. In both healthcare and VET, decision-making can
be mediated through complex structures and arrangements; for example, in TAFE
institutes or teaching hospitals. Often decision-making is contested; for example,
between different levels of decision-makers, between public and private providers
and between professional and managerial perspectives. There is additional
complexity when the distribution of power between key stakeholders changes; as it
did following the election of the Howard Government in March 1996. In such a
complex and dynamic environment there can be many openings for R&D to
influence decision-making. Of course, the role of R&D may be overshadowed by
other factors. Thirdly, there are the assumptive worlds of key individuals and
organizations involved in the decision-making process. The studies considered in
Sections 3 and 4 suggest that there are significant differences in the assumptive
worlds of key stakeholders in healthcare and VET. And in both sectors public
service downsizing has reduced the role of research branches, distancing policy-
makers further from R&D, managers and practitioners. There was evidence of
differences in the assumptive worlds of key decision-makers, too, at the different
levels of decision-making. In practice, and perhaps particularly among
practitioners and managers, formal R&D-based evidence is often supplemented by
local experience and knowledge. Three other points are briefly noted. First, at the
level of healthcare and VET providers there has been a considerable increase over
recent years in competitive pressures accompanying regulatory reform. The case
studies of individual providers, while reflecting specific factors in particular
contexts, underlined the importance of a decision making environment predisposed
to give audience to R&D findings, the contributions of key individuals rather than
formal structures, and the cumulative contributions to organizational effectiveness
and practitioner competence from successfully applying R&D to decision-making.
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Secondly, globalization and increased international competition are leading to the


closer integration of a range of policies to enhance efficiency and innovation,
including in healthcare and education. Some of the main drivers of healthcare and
VET policy and practice originate outside those two sectors; and in these other
areas, important developments are influenced by R&D activity and knowledge
accumulation. It follows that R&D not specifically directed at healthcare or
education can significantly affect decision-making there. Examples include
competition policies, developments in financing arrangements or human resource
management approaches, and changing perspectives on the appropriate balance
between producer and consumer interests. Both the healthcare and education
systems require a capacity to translate relevant R&D undertaken elsewhere, from
both domestic and international sources, so that it can be applied effectively in
local circumstances. Thirdly, there are indirect as well as direct links between R&D
and decision-making at all levels, including decision-making by managers in
provider organizations and by individual practitioners. Each stakeholder
organization uses R&D to advance its own interests, deploying a wide range of
information, including R&D-based information, in their engagement with current
political and policy debates. They also use R&D for communicating with
constituents and for other purposes, including industrial negotiations. They seek to
influence the broader research agenda. Also, the wider communitys call for change
rather than direct R&D evidence can produce modifications in decision-making by
provider organizations or practitioners. Clamour (Postlethwaite 1984) can both
initiate research and be driven by it. Here, R&D has an impact on decision making
which is indirect and mediated through the media, the judiciary, community
activity, public opinion and the political process. We suggest that researchers
should have suitably modest expectations about the contribution of R&D to
decision-making, including by managers and practitioners, since R&D is only one
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of a number of sources of information available to decision-makers, and


information from all sources is only one of many inputs into the decision-making
process. Brown (1991), considering healthcare decision-making in the US,
concluded that on a good day, ideas (information) may gain a hearing amid the
swirl of political considerations, but it must be a very good and rare day indeed
when policy-makers take their cues mainly from scientific knowledge about the
state of the world they hope to change or protect. Two-thirds of the senior
decision-makers in VET who were surveyed considered that, in reaching decisions,
political and strategic considerations played the greatest role, with research-based
information being used in half the cases described to support a decision already
taken (Selby Smith et al 1998). And Boud et al (1997) argue that, at the level of
education providers and practitioners, decisions tend to be made according to past
practice, perceptions of industry needs and local constraints, rather than based on
research.

R&D Research in healthcare and education is so diverse and includes so many


approaches that we are not communicating well if we just talk about research
with a capital R (Anderson 1998). The Australian Bureau of Statistics (1993)
defines research (R&D), by reference to the OECD Frascati Manual, as comprising
creative work undertaken on a systematic basis in order to increase the stock of
knowledge, including knowledge of man, culture and society, and the use of this
knowledge to devise new applications. Thus, R&D focuses on studies
characterized by originality; it has investigation as a primary objective; and
research shades into development and application. R&D has three main outputs.
First, it provides new knowledge and applies existing knowledge in new ways,
including for new audiences and in new settings. A second output consists of
research skills and attitudes: an approach, a way of doing things or of assessing

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alternative sources of information. R&D creates human capital as well as


knowledge. The third output is appropriately educated people, who are critical for
the effective operation of the research system and improved decision-making. Most
impact studies concentrate on the knowledge creation aspects of research. Since
R&D involves an aspiration to truth, it precludes conclusions being reached before
the evidence is examined or despite it (Weiss 1991). The OECD and the Australian
Bureau of Statistics classify R&D studies by type: basic research; strategic
research; applied research; and experimental development (Australian Bureau of
Statistics 1993). Research in healthcare and VET can be distributed among the four
types. Three significant implications arise. First, one would expect different levels
of impact for the different types of research. For example, R&D which specifically
addresses.

A current problem clearly defined by users is likely to be thought more relevant,


particularly in the short term, than research intended to expand decision-makers
conceptual understanding. Secondly, one might expect different patterns of impact
between the types of R&D in various decision-making situations. For example,
national and State level decision-makers might be expected to attach higher
priority to strategic research and less to developmental activities - and the reverse
for providers, because the former tend to be less concerned with detailed
implementation and more with strategic questions (and conversely for managers
and practitioners). Also, different patterns of R&D impact would be expected at
different stages of the policy cycle. Thirdly, perceptions of use and influence tend
to vary among types of R&D. Even when information from a research study is
used or has an influence on decision-making, this may not be visible to a particular
stakeholder. Note, however, that research skills and attitudes can be used in all
decision-making settings (and in the research system itself). The accumulative

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nature of R&D means that, while an individual study can have an impact on
decision-making; this tends to be the exception not the rule. Trace-back studies
suggest greater research impact, particularly from basic R&D, than forward-
looking studies. Viewing research as a process of debate (Klein 1990) or
conceptualizing a knowledge reservoir (Buxton and Hanney 1997) highlights the
value of an ongoing research capacity from which decision-makers can draw.
Educational research and R&D on the healthcare system employ a wide range of
approaches. Since different research questions benefit from different techniques
and methodologies, it is important to match the approach to the problem. When a
particular disciplinary approach is adopted, this influences the problems identified,
the questions posed, the techniques adopted to investigate them, the way in which
results are reported and the audiences with whom researchers interact. To the
extent that the issues concerning decision-makers warrant attention from more than
one disciplinary perspective, researchers require not only competence in their
discipline, but other skills and personal characteristics to enable them to
collaborate effectively. R&D is carried out in various locations. Indeed, it can be
argued that anyone with relevant skills can carry out R&D and they can do it
anywhere. However, there are advantages in carrying out particular types of R&D
in the different locations. Each location tends to specialize in particular types of
research; produce different combinations of research outputs; and attract particular
types of researcher. The great majority of R&D by practitioners appears to
represent the actions of individuals seeking to improve the operation of an activity
with which they are involved; these studies are often relatively brief in duration
and produce either no report or one which has only limited circulation. There is a
balance to be struck, from the overall societal viewpoint, among the different types
of research and, by implication, among the different locations.

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Types of Research
Businesses of all types and sizes undertake extensive research methods to improve
and grow. The long term success of a start up, medium sized business and even
established business depends on efficient and cost effective research undertaken.

Companies often rely on various business research methods to obtain information


from the consumers or other businesses. Such business research methods
undertaken enable a company to do an in depth study about several internal and
external factors influencing the market share and profitability of the company.

Based on the information obtained through the different business research


methods, companies whether new or established can undertake some essential
business decisions such as the following-

Possibility of the business to survive and succeed in a new geographical


region
Assessment about competitors
Adopting a suitable market approach for a product

Businesses may choose to adopt either one or all of the below discussed research
methods to achieve their business goals:

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1. Case Studies

The business research method of case study is generally undertaken by those


business houses who want a detailed and comprehensive understanding of the
consumer response about a particular product or service.

Case studies primarily help a business in the following ways:

Thorough assessment of consumer satisfaction.


Consumer attitudes and opinion about a product.

Though case study method of business research is time consuming, it helps in the
collection of in depth information about customers likes, dislikes and preferences
thus throwing light on strength and weakness of a specific product or service.

2. Conducting Surveys

Conducting surveys is a very common method adopted by businesses to gather


larger amount of information or data immediately at a very low cost. Due to large
popularity of this method of business research, a standard survey sample is easily
available for companies which they can put together to ascertain relevant
information.

The biggest drawback of survey research method is failure of response from


consumers in the specific target market along with less detailed, incomplete
surveys and minimum information pertaining to the specific target market.

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ROLE OF RESEARCH IN MAKING DECISION

3. Interviews

Companies rely on this method of business research to track actual consumer


experiences with respect to a particular product or service. Consumers are asked
specific questions which they have to answer at length based on which companies
get a clear picture about the level of consumer satisfaction, experience of the
consumer in lieu to a product or service.

The main advantage of this research methodology is the chance to ask follow up
questions which throws light about the consumer response with respect to a
specific product or service. The only drawback is that a careless interviewer can
partially influence the response provided by interviewee. Also this method of
business research tends to be time consuming.

4. Focus Groups

Focus group can be described as a in between research methodology among the


various business research methods. The idea behind undertaking this method of
business research is to obtain an honest suggestion and feedback from the
consumers about a specific product or service.

The focus groups aim to provide a larger sample as compared to interviews and
case studies. The only drawback from undertaking this type of research is that there
are chances of the facilitator in asking irrelevant questions which might divert the
research in a particular direction thus defeating the ultimate purpose of the analysis
undertaken.

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Some essential steps to overcome shortcomings of business research methods

Research is fundamental to all business and it is often as essentially important to


the business as the data availability. Many errors are likely to occur in the process
of business research. For instance, inaccurately recorded data, irrelevant questions
posed by the researchers pose as challenges while making important business
decisions.

As business research methods acts as a guiding light. Managers should learn to use
it with caution by becoming aware about its impending shortcomings. Research
Services is a leading name in the business research industry having catered to some
of the worlds leading Fortune 500 companies. Be it competitive intelligence or
opinion studies, Research Services has extensive experience in delivering world-
class business research services.

Why do research?

Because without it we are all just guessing! Think of the time and money you
waste going down the wrong routes. Much better to be forewarned and forearmed.
Research is helpful at every point in the planning process, from market and
competitor analysis to identify the size of your market, the trends in your industry,
who the main competitors are and what their proposition is, to analyzing buyer
behavior and learning what customers need to be able to buy from you.

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ROLE OF RESEARCH IN MAKING DECISION

Take the time to understand your proposition and what your customers think of
you, make sure its differentiated and then work out your strategy and how youre
going to turn it into action.

Across all sectors, the leading brands locally are benefiting from research check
out our clients list to see who. Research can be used for anything from providing
content for PR purposes to ultimately, helping you to sleep better at night, because
information empowers you to make informed decisions; saving you valuable time
and reducing risk.

It is tempting to believe that if an organization is running smoothly with good


profits and an excellent team of professionals, it will continue to function in the
same capacity. But sadly that is not the case. Constant enhancement and
development of the business and the team are essential to surpass others in the
market and have a competitive edge. This is largely possible through research.

Research is not restricted only to medical and science fields but is an important
aspect of any organization big or small. A company consists of people and it is
this team that steers the course of the business. Businesses succeed or fail based on
the decisions taken by these people in the organization. At the same time, most
managers also need access to facts and figures about the organizations
performance, markets, financial aspects to continually enhance the business and
the quality of their products. Many organizations in industries like pharmaceuticals
have a full fledged research and development division with quality control to
ensure quality of product and invention of new products.

But what happens in SMEs and other service sectors like NGOs and business
consultancy? In such a scenario, research is an all time must for continuous

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upgrading of skills and knowledge of employees for quality deliverables. Besides


this, the deliverables by itself would need a vast amount of research to satisfy the
requirements of clients.

In-house research is needed in areas of professional and self development of the


employees through training and mentoring. Organizational research and analysis
would also be required for assessment of performance management, process
reengineering, departmental assessment and well-being of employees.

All the above mentioned research areas would involve the people directly as they
are the ones who initiate all processes. Research in each of these areas can bring
about meaningful and relevant implementation of policies and procedures for
positive change within the organization.

Performance management would require the managers to play a crucial role as


facilitator and mentor to achieve excellent results. Besides motivating and
encouraging the team, a manager needs to lead from the front.

A proper understanding of the employees and healthy interaction would be crucial


factors for a manager to enhance performance of the individuals in the team. A
good approach, right attitude and behavior of the manager with proper systems in
place would require sound research to understand and improve the system.

Process reengineering involves a detailed study of the existing processes and


systems of the departments, inter-departments and also between units. A careful
study would reveal the gaps existing in the system and suitable remedial or
innovative solutions can be arrived at through analysis. It would eliminate
repetitive and waste activities with introduction of better and enhanced processes.

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Departmental assessment would involve understanding the purpose and processes


of the department. If done by the department team, it provides a feeling of
ownership and brings about a sense of responsibility. The team would be able to
identify what works well for them and what are the exercises that can be
eliminated.

With regard to the staff, a properly conducted research can reveal crucial
information on their satisfaction quotient, the difficulties encountered by them and
how the issues pertaining to relationships at the workplace can be tackled. An
analysis of the results would enable the management to bring about changes for the
overall effective functioning of the organization and its employees. The employees
can be mentored and trained based on the needs. This would facilitate personal as
well as professional development enhancing overall organizational performance.

Besides research on the systems, an organization requires research to improve their


marketing and sales performance.

The facts and figures of operations through proper accounting and financial
systems would help in taking decisions on the feasibility and growth of the
organization.

Ultimately, it is research that helps sustain a company. It would enable the


management in decision making through careful analysis of the research output for
the benefit of the organization. Many organizations have been unable to sustain
themselves and have fallen simply because of neglecting research and not keeping
abreast of market trends and innovations. Research is important to survive in
business.

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Inputs of Research
Operations research applies sophisticated statistical analysis and mathematical
modeling to solve an array of business and organizational problems, as well as
improve decision-making. As the business environment grows more complex,
companies and government agencies rely on analysis to inform decisions that were
once based largely on management intuition. Originally developed by the U.S.
Department of Defense during World War II, operations research has helped many
large companies and government agencies make better decisions, boost
performance and reduce risk.

Simplifying Complexity

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Modern challenges associated with a global economy and the growth of technology
has increased the complexity of the business environment. Modern corporations
often strive to serve a global, rather than a regional or national, customer base and
face worldwide competition. By relying on sophisticated mathematical models and
advanced software tools, operations research can assess all available options facing
a firm, project possible outcomes and analyze risks associated with particular
decisions. The result is more complete information on which management can
make decisions and set policy, according to the Institute for Operations Research
and the Management Sciences, INFORMS for short, a national organization of
operations research professionals.

Maximizing Data
Companies collect large amounts of data but may feel overwhelmed by the volume
and lack the time or expertise to fully analyze these data, transforming them into
useful information on which to base decisions. Operations research uses advanced
mathematical and statistical techniques, such as linear programming and regression
analysis, to help organizations make the most of their data, according to
INFORMS' Science of Better website. Through detailed analysis of the data,
operations research analysts can help uncover options that lead to higher profits,
more-efficient operations and less risk.

Adding Value
In its executive guide to operations research, "Seat-of-the-Pants-Less," INFORMS
reports that operations research has added value to organizations in the public and
private sector alike. For example, INFORMS reported that UPS used operations
research to redesign its overnight delivery network in such a way that saved more
than $80 million between 2000 and 2002. Meanwhile, New Haven, Connecticut,

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used operations research to determine the extent to which the city's needle
exchange program reduced HIV infection rates.

Considerations
INFORMS outlines five signs for organizations that could benefit from operations
research. These indicators are facing complex decisions, having problems with
processes, having trouble with risk, not making the most of available data and
needing to overcome stiff competition. Operations research analysts can help
organizations overcome these challenges.

The Purpose of the Research


It is not at all unusual for marketing managers to neglect to tell the researcher the
precise purpose of the research. They often do not appreciate the need to do so.
Instead, they simply state what they think they need to know. This is not quite the
same thing. To appreciate the difference consider the case of the marketing
research agency which was contacted by the International Coffee Organisation
(ICO) and asked to carry out a survey of young people in the age group 15-24.
They wanted information on the coffee drinking habits of these young people: how
much coffee they drank, at what times of day, with meals or between meals, instant
or ground coffee, which other beverages they preferred and so on. In response, the
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research organization developed a set of wide-ranging proposals which included


taking a large random sample of young people.

In fact much of the information was interesting rather than important. Important
information is that information which directly assists in making decisions and the
ICO had not told the research company the purpose of the research. The initial
reason for the study had been a suspicion, on the part of the ICO, that an increasing
percentage of young people were consuming beverages other than coffee,
particularly soft drinks, and simply never developed the coffee drinking habit. Had
this been explained to the research company then it is likely that their proposals
would have been radically different. To begin with, the sample would have been
composed of 15-24 year old non-coffee drinkers rather than a random sample of all
15-24 year olds. Second, the focus would have been non-coffee drinking habits
rather than coffee drinking habits.

Five Concluding Comments


First, the evidence is that R&D does have an impact on decision-making by
policy-makers and practitioners in both decision making and education, but
not in the way many people think. For example, the research enterprise is
accumulative. Over time, researchs main contribution may be to the big
ideas. A number of the big ideas preoccupying senior decision-makers in
recent years are grounded in research. The outputs of the R&D system also
include research skills and attitudes and trained personnel (human capital).
These outputs are often overlooked (they were largely ignored by users at
the symposia). Their absence substantially weakens decision-making.
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ROLE OF RESEARCH IN MAKING DECISION

Secondly, it was generally not possible to evaluate in any quantitative


fashion the extent of the influence of research on decision-making. There are
many different types (broadly defined) of research and these can be used in a
wide range of decision-making contexts. They have varying levels of
visibility to the separate groups of users and other stakeholders and affect
their knowledge of the extent of researchs influence. Thus, a priori, one
cannot conclude which types of research are used and have influence more
than others: it depends. Further, the extent of the use or influence of research
cannot be determined by considering the research system alone. It depends
critically on the circumstances of decision-making in a particular context
and the linkages between research and decision-making in that context. The
research studies demonstrated that there are many contexts and a range of
(potential) uses of research in decision-making.
Thirdly, the extent to which research is used and has influence on decision-
making can be enhanced by the actions of the stakeholders. This places
responsibilities on both decision makers and researchers. For example,
decision-makers have an obligation to be engaged with the world of ideas
and to develop their own human capital. They cannot expect to make good
decisions without thought. Neither decision-makers nor researchers are
likely to act appropriately unless the incentive structures in their work
settings encourage it. Also, to the extent that a significant amount of research
is now commissioned by users in every decision, these groups actions will
influence the quality of research. For example, a strong preference by users
for R&D that is short-term and instrumental can, in the longer term, weaken
the research base. A weak network of effective linkages undermines the
potential for research to be used in decision-making at each level and to have
influence, by limiting the potential for the two-way flow of information and

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ROLE OF RESEARCH IN MAKING DECISION

people. The emphasis on linkages rather than dissemination (narrowly


defined) increases the mutual responsibilities of the parties.
Fourthly, the case studies brought students and workers (in VET) and
patients and careers (in healthcare) into prominence as an additional set of
significant decision-makers by whom R&D can be used, and on whom it can
have an influence. This was a valuable addition to the framework for
analyzing the relationships between R&D and decision making. It
emphasizes that decision-making at this level is often the result of the
relationship between providers and users; and that R&D can be used by, and
have influence with, both parties to the relationship.
Finally, the studies raised the difficult issue of the precise boundaries of
R&D, especially in relation to research skills and attitudes, and at the level
of practitioners and managers. Openness to evidence in making decisions,
for example, can be characterized as a way of working, as well as
characteristic of R&D. A number of the case studies can be seen as wrestling
with how best to define the precise boundary of R&D activity. In an
increasingly turbulent environment, an interest by managers and
practitioners in evidence, openness to new perspectives and a willingness to
learn progressively and systematically from the experience of oneself and
others is central to improving practice and performance. The studies
illustrate the diverse ways in which a beneficial relationship between R&D
and decision-making in healthcare or education at the managerial and
practitioner levels can operate, or be frustrated.

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ROLE OF RESEARCH IN MAKING DECISION

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