by the Skills Accelerator team
Business and research are terms that are often synonymous with each other, being used in multiple departments and teams within organisations. Developing an in depth understanding of research types and how they can be utilised is understandably something that is of key strategic importance to business leaders. Often within organisations research is a term that is seen to be an art form used only by marketing departments when undertaking market or customer research. However, research is something that can and should be a key competency that all departments within an organisation are keen and able to draw upon. In today’s ever-changing world in which customers, markets, technology, social trends, economics, and policies are moving and adapting at an ever-faster rate, undertaking research to keep ahead of these trends is something that is proving to be something of an art. But what exactly does research mean in the context of business?
Research in Business
Research is something that can be used within business to answer many questions of strategic importance. Customer research can inform product or service development, employee research can assist in the development of a positive organisational culture while research on the external environment and trends can inform strategic decision making. This research can be used internally and externally, assisting in relationship development with stakeholders. No matter the area on which research is needed, the process organisations and employees need to follow to enable this to be a success remain the same. The key steps involved in this process are:
1. The development of a research idea/topic: The start of any research journey involves deciding what key area or project research is needed into. This involves thinking about what internal or external knowledge the organisation needs. As highlighted previously, research topics could include customer or product research or internal employee research.
2. The development of SMART research objectives: After a research topic has been chosen it is then crucial to generate SMART research objectives based on this key area. This gives the research project a focus and ensures that the research is specific, measurable, attainable, realistic and timely.
3. Consideration of research ethics: During any research process it is critical to consider any ethical issues that need to be considered as part of the project. For instance, does the research involve anyone under the age of 18 or in a vulnerable group.
4. Undertaking desk-based secondary research: After research objectives have been formed, the next step is to undertake desk-based or secondary research on the area. This involves gathering knowledge that is already available in the public domain.
5. Undertaking primary research: The desk-based research will provide an understanding as to whether primary research is needed on the topic in the form of questionnaires or interviews for instance, providing another level of data.
6. Data analysis: Once data collection has taken place, the next step is to undertake analysis of this data through either quantitative or qualitative data analysis.
7. Application of knowledge: The penultimate steps in the research process are to bring together all the information and knowledge that has been gained, interpret what this means for the organisation and then applying the knowledge that has been gained.
8. Communication of knowledge: This knowledge then needs to be communicated to internal and external stakeholders in a concise and effective way to ensure the best strategic use of the data gathered.
Organisations can confidently and effectively create and manage a research plan for any area of the business by following these key steps. Data and research are arguably one of the most important assets and tools that organisations have at their disposal in today’s data driven world.
Research can make or break you
There are many examples of organisations that have thrived using effective research and examples of those who have suffered negatively as a result of their lack of effective research. Lego was able to use market research to completely overhaul their business offering and their brand image, gaining themselves a whole new set of customers. They conducted some initial research and found that only 9% of their customer base were girls. In response to this they undertook a four-year study involving 3,500 girls and their mothers. They observed the ways in which the girls played and asked them questions regarding what would make Lego more interesting for them. The result of this research was a new line of toys released in 2012 called “Lego Friends” with brick colours changed to make them more vibrant and packaging and figures changed. Figures were also made larger than normal to accommodate accessories such as hairbrushes. Lego’s net profit rose 35% to £213m and sales rose 24% due to the success of their research and the resulting “Lego Friends” product line. The latest range is now designed to be representative of different genders, cultures, ethnicities, and neurodiversity – highlighting the ongoing use of research and its input to the product development process.
Alternatively, there are many classic examples of organisations who have experienced failure because of undertaking poor research. Take the example of New Coke. Coca Cola decided that to compete with Pepsi they needed to change their formula to a sweeter version. Coca Cola found during their market research that customers preferred the new taste and as a result were confident in their new product. However New Coke was a massive failure with customers calling for a return to the original formula. The reason for this was that in the market research customers were only tasting sips of the New Coke, as opposed to drinking a whole glass or can as they normally would. This simple mistake cost Coca Cola millions of dollars in terms of loss of time, money and reputation.
So how can businesses ensure that they fall into the first category and effectively use research to enable business success?
An answer is Skills Accelerator
Skills Accelerator from Pearson has been designed to enable employees to work on real life projects whilst developing skills in key areas. This means that multiple members of a department can develop research skills on areas of key strategic importance to the business. Employees are taken on a research journey that they consistently apply to a real-world live organisational scenario. The “Creating an effective research plan” course enables employees to gain key skills in the following areas:
1. Problem/opportunity identification – Employees will be able to analyse the external and internal environment to accurately identify problems or opportunities that require further research. Skills in developing research objectives will result.
2. Research design – Employees will be able to confidently design a research plan to a high level to ensure adequate knowledge is gained regarding their research objectives.
3. Data analysis – Employees will be able to undertake a high level of data analysis that is appropriate to the research methodology used for the research project.
4. Critical thinking – Employees will be able to employ a high level of critical thinking to a variety of different data, resources and knowledge. A high level of interpretation and practical application of the research findings will be evident.
5. Communication – Employees will be able to take the knowledge and information that they have gained and communicate this to a wide range of stakeholders in a clear and succinct way.
Considering the importance of data and research in today’s data driven world gaining skills in this key area is something of a business priority.