Week-1/ research in business for decision making
What business research is and its importance from business
decision support systems and business intelligence systems.
Business research provides information to guide business
Business research plays an important role in an environment
that emphasizes measurement. Return on investment (ROI) is
the calculation of the financial return for all business
expenditures and it is emphasized more now than ever before.
/ Finance uses business research to make decisions to support:
Forecast future financial performance, Assess the risk of
investment portfolios and projects, construct financial
instruments such as derivatives, construct optimal portfolios of
investments, allocate assets, create optimal capital budgeting
Human Resource Management:
uses business research
to make decisions to ensure that the organization has the mix of
skill sets necessary to meet its needs, is hiring the highest-quality
talent and providing an environment that retains it, Achieves its
organizational diversity goals
/ Marketing Management
business research to make decisions to support: Understanding
its Consumer’s Behavior and Decision Making, Better use of
advertising budgets, More effective pricing strategies, Improved
forecasting of demand, Improved product line management,
Increased customer satisfaction and loyalty
A process of determining, acquiring,
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.
of research is to reduce the level of risk of a business decision
Trends affecting business research and the emerging hierarchy of
business decision makers.
Several factors increase the relevance
for studying business research.
the Internet and its search engines present extensive amounts of
information, its quality and credibility must be continuously
Individuals, public sector
organizations, and businesses are adapting to changes in work
patterns (real-time and global
3. Shifting global centers of
economic activity and competition.
The rising economic power
of Asia and demographic shifts within regions highlight the need
organizations to expand their knowledge of consumers
Increasingly critical scrutiny of big business.
The availability of
information has made it possible for all a firm’s stakeholders to
demand inclusion in company decision making
As public-sector activities increase in
order to provide some minimal or enhanced level of social
6. Battle for analytical talent
progressively complex decisions, applying mathematical models
to extract meaningful knowledge from volumes of data and using
highly sophisticated software to run their organizations.