Summary Methodology for IE Research 1ZV00 including practise questions

Methodology 1ZV00 Summary

Exam material Problem Solving in Organization: entire book
Business Research Methods (empirical cycle): Ch. 1,2,3,5,6,7,9,12,14
Lecture slides and additional material on Canvas


Why is good methodology important?
Every problem requires a systematic approach.

Method = A systematic established procedure for approaching something
Methodology = A system of methods used in a particular area of study

Why is good methodology important?
 Make informed choices in your projects;
 Be able to plan and set-up your project;
 Know how to apply methods to get good results (and avoid pitfalls = hidden danger);
 Assess research critically (and understand its limitations!);
 Learn transferable skills that will be useful beyond your studies.


Problem-solving cycle = How to make it work?  Use when Business processes need to be
improved
 Used for performance-related business issues
 Context specific! (Solution for Albert Heijn does not need to work for Jumbo)
 A business process that does not meet a defined performance level
 e.g. Costs, quality, timeliness
 Dissatisfied stakeholders

Business process = A set of activities and tasks that, once completed will accomplish in an
organisational goal (How things are done)

examples

,Problem Solving Cycle
Step 1: Problem Definition = Search, choose, demarcate, plan
(Figuring out what the problem is and defining is)

Step 2: Analysis and Diagnoses = Systematically gather and interpret information on context
and possibly causes

Step 3: Solution Design = Propose a solution and plan how to implement it

Step 4: Intervention = Implement the solution

Step 5: Evaluation and learning = Does it work/improve?


Empirical Cycle
 Used for generic business problems that many businesses encounter
 Relationships between variables
 Develop and empirically test theories
 Aim: generalizable insights, usable across contexts


Step 1: Observation = Observe a business problem
 Is this likely to apply in many instances?
 Does academic literature already say something?

Step 2: Induction (developing theory) = Possible explanations in literature or based on data?

Step 3: Deduction (generalizing hypotheses) = formulate generic hypotheses

Step 4: Testing (of hypotheses) = Empirical hypothesis testing (quantitative data and
qualitative case studies)

Step 5: Evaluation = is this the right explanation?

, PROBLEM-SOLVING CYCLE STEP 1 : PROBLEM DEFINITION

Defining a Business problem

 Problem mess and problem statement
 Setting up a problem-solving project

Problem Definition = Search, Choose, Demarcate and plan

 Collect insights both internally and externally
 Synthesise all information
 Select business problem and demarcate
 Decide on research framework: theory and deliverables
 Plan: when to do what and why, using which resources
 Write project proposal

Business problem= A state of affairs in the real world where important stakeholders are
dissatisfied, while they believe that things can be improved. A business process that does not
meet expectations and can be improved.

Problem mess  Problem statement




Problem: Food waste at Albert Heijn

, Problem definition: The accuracy of the replenishment process is too low.

When do store managers deviate from the suggested order quantity?

 What does the academic literature say on human forecasting?
 When are humans better than forecasting that algorithms?

Adjust the order system so that store managers are:

 Encouraged to change the order in certain situations
 Discouraged to change the order in other situations

Includes: training, awareness, openness to change, etc.

Problem statement = a description of a business problem

 No problem-solving project without problem statement!

Generic form of IE problem statements: Y of X is Z

Y = Performance indicator e.g. costs, quality, throughput time
X = Business process
Z = Unwanted value of Y

Examples:




A problem statement is a statement (e.g. “The runtime of X is too long”)
 Not a question (“What is the causes of the long runtime?”)
 Not an assignment ( “Shorten the runtime.”)
 Not a cause-effect relationship (“Limited capacity of Y causes the long runtime”.)

Try to make your problem statement as specific as possible in terms of structure, content, time
and place.
 “Workload (performance indicator) in production (Business process) is too high
(unwanted outcome)


Characteristics of Business Problems

 Part of a problem mess
 Embedded in social systems
o Several stakeholders with potentially contradicting perspectives and
interests
 Open ended, multiple solutions possible
 Often solved within constraints of time and resources