Two weeks ago, I started a series of articles about Strategy. In today’s post, we will talk about research and its importance.
To build a serious strategy, research is necessary. Often, the research stage takes the most time within the strategic process.
Indeed, it takes a long time and seems hard to understand why it must be done. Especially since it doesn’t seem very productive… In addition, you would also have to pay an expert (sic!) to do it well, unless you feel like going through several volumes of specialized reading beforehand.
How is research done? With patience, is the most straightforward answer. But let’s take them one by one, because each research subject requires its own tools, and we wouldn’t want to mix them up.
Thus, we will want to start with research on the macro-environment and industry trends. This involves the PEEST analysis (political, economic, environmental, social & technological factors), which we might delve into on another occasion.
This is important because it gives us a general perspective on the factors that influence our business and which we cannot influence (unless we are an economic giant).
When we talk about trends, these can emerge from the aforementioned analysis, but I also recommend “spying” on what is happening abroad, in Europe and the States.
Given that they set the tone in almost every field, it’s like having the chance to see into the future when we want to see where a certain field we are studying is headed.
Once this stage is completed, we will begin to analyze what is also called our business micro-environment, namely the stakeholders (with an emphasis on consumers and competition, if we are referring to the commercial side).
The consumer study is one of the most complex, but also one of the most important investments that can be made in a company.
Using qualitative research tools (interview, focus group), as well as quantitative ones (questionnaire), we will obtain a huge database that will allow for interpretation and understanding.
Understanding information and transforming it into decisions is also called intelligence and leads to innovation, ideally. In any case, it will lead to understanding consumers, to whom we will be able to deliver closer to the needs they have or will have.
The study of the competition is a step that must be taken, in turn, with great care and responsibility. The gathered information must be added to documents, which should be updated periodically, so that we have a correct and complete picture of our competitors.
The most frequently used tool in this regard is document analysis, meaning the study of articles, interviews, and publications of any kind (including social media, blogs, websites) of the competitors.
They must be under observation at all times, because every move they make will affect our market. The thing that makes them different and represents a strength of theirs must be the next item on our list, so that we can match them (and then some). We can be sure they are doing the same to us.
Last but not least, we must conduct an objective analysis of our own company. Someone from the outside should really be brought in here, because the last thing you are capable of regarding your own company (as an employee or entrepreneur) is being objective.
Some of the tools used in this regard are observation and the interview, being the first to tell us (like a kind of verbal and non-verbal language) what the state of affairs is, and the strengths and weaknesses of our company.
There is a lot of work involved in research for a strategy, and no one said it’s easy. But it is important to do it, because it’s like lifting a veil from our eyes once we understand it. All the data we collect will be interpreted and transformed into intelligence and innovation!
It is said that he who has the information has the power. To have the information, we need research. However, it is not enough just to have it; we must understand it and then use it.
