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• The research industry is one of extremes.

– Very large suppliers account for the sales portion of sales in the industry.

– Smaller firms and one-person shops dominate when you look at the number of research firms.

• Exhibit 1a-1 provides an overview of the suppliers within the research industry.

Internal Research Suppliers

• Firms that rely on research to make decisions are likely to have an internal research department or an individual who coordinates research initiatives.

• The number of firms with internal research departments began to grow in the 1960s.

• In the 1970s, researchers were often assigned to a functional area, such as marketing, and reported to the executive in charge of that area.

• The researcher’s influence at the strategic level was constrained by their role… order takers who reacted to the demand for research projects and reports.

• Through the 1990s, the accuracy and actionability of the information provided by research was thought to be low.

• In 2001, the Cambridge Group and ARF sought to redefine the research function in order to make it more relevant to senior management.

• Based on executives’ feedback, research began to expand into such areas as:

– Providing actionable insights

– Reducing risk in marketplace actions

– Improving return on investment

• This evolution is consistent with Northwestern’s Philip Kotler’s contention that, as costs rise, CEOs and board members demand greater accountability for decisions and expenditures.

• However, there is no trend toward staffing large internal research departments. In poor economic times, internal research departments may be eliminated altogether, because firms feel that such services are expendable or available from external suppliers.

• In some ways, the prominence of the DSS and BIS functions has forced the researcher into an even more subordinate role.

• While both information technology management and research are critical, in most organizations the two functions...