Research Specialists vs. Research Generalists
Last time we counted there were more than 300 research companies in Australia and yet Australia is a country with an economy characterised by fewness – a few confectionary companies, a few petroleum companies, a few grocers, a few banks, and a few airlines, yet over 300 research suppliers!
Perhaps one element that might contribute to an increase in the concentration of research providers faster than anything else is clients' demand for solutions requiring advanced quantitative analytics, and the inability of some generalist research providers to satisfy that demand. In this context, it is plausible that some generalists will give way to groups of specialists. For example, specialists in choice-based techniques, clustering techniques for segmentation and so on.
The demand for advanced quantitative techniques might be partly explained by a study undertaken by Davenport and Harris in 2006, investigating the effect of analytics on business performance, where it was found that a significant positive correlation existed between companies with higher levels of analytical maturity and robust five-year compound annual growth rates.
Value-Added Analysis
As the cost of data collection falls, will organisations undertake more data collection, or instead allocate more of their budget to generating greater insight? Excess CATI supply coupled with the improving quality of panels for the internet data collection are leading to more of the budget being available for value adding analysis.
In contrast to the falling cost of data collection, graphical production is increasing in cost because, in the face of increasing sophistication of data analysis and modelling, even greater effort is required to shield management from this complexity whilst simultaneously revealing the key insights. This trend is evidenced by the rapidly rising use of Dashboards as a tool for the presentation of quantitative research.
Job Shop Generalists
The vast majority of Australia’s research firms have fewer than five employees. As a result, it is often necessary for such researchers to be able to perform a variety of functions. In some instances, where there are both qualitative and quantitative objectives, a generalist might receive the brief, write the proposal, receive the commission, complete the qualitative stage and write the findings, draft the questionnaire, analyse the data and produce the report including exhibits and the like and make recommendations. In this way, the generalists’ are required to be a ‘Jack of all trades’. The question being raised here is, in the face of increasing sophistication of clients’ analytical needs, will the generalist model become less sustainable?
A group of specialists on the other hand, not only have the ability to have a narrow focus and more detailed expertise but importantly, they provide collegiate support to other specialists in developing ideas. Generalists might only get the opportunity to periodically apply one or two quantitative techniques and consequently find themselves more comfortable with a narrow repertoire of techniques. In such situations, the old adage may apply: 'If all that you have is a hammer, then everything looks like a nail.'
