Business applications and implementation

Business Applications

Among telecommunications companies, Verizon has a highly-developed, well-integrated research function. The company utilizes each major type of research in order to meet its diverse strategic needs. A couple of factors contribute to Verizon's strong research focus. One is that the company operates in a technology-based industry, so the culture of research is well-developed. The other is that the industry is highly competitive. This emphasizes the importance of quality research in the planning process. Subtle insights can translate into incremental market share gains worth millions of dollars.

Verizon has long emphasized applied research on the technology side of its business. New technology has come rapidly to the telecommunications industry in recent years. The result of this has been an increased emphasis on applied research as a source of competitive advantage. When new technologies are developed, the company and its key technology suppliers must determine the different ways in which each development can be applied to the marketplace. The result can be an innovative new product worth millions of dollars.

Verizon has become adept at translating the research focus of its technology departments into the marketing ones. At the core of Verizon's research strategy is the Verizon Information Research Network (VIRN). This network was set up to address the problem of having many research questions, but limited resources available to deal with the questions. VIRN is a self-serve model that provides Verizon employees to research from over 20 different sources.

The company has even been able to utilize the VIRN system to provide research to its customers, thus developing a B2C function for what was originally designed as an internal application. The VIRN is a highly automated system that provides research both to in-house clients and to external ones as well. This system has streamlined the research process in that it uses search technology as well as the concept of a central portal to provide its employees with research that has already been gathered by other parts of the company and by external sources.

Verizon also contracts out some of its market research to polling firm Gallup. That company conducts surveys to ascertain information regarding Verizon's service levels and customer satisfaction with regards to their product offerings. This has allowed Verizon to maintain a high professional standard with respect to their research function while controlling costs. However, it takes some control of the research function away from the end users in marketing and product development. It is reasonable to assume that these users help guide the research but the extra layer of communication in between the end users and the researchers can render the process less efficient.

The effects of Verizon's comprehensive research program are felt throughout the organization. These include their reputation as an innovator in the telecommunications field with "marketable points of differentiation." This differentiation is the result of Verizon's ability to synthesize two distinctly different types of research. One is the applied research in which they consistently have demonstrated an aptitude. The other is with their customer orientation. It is not sufficient to develop wonderful new technology. It is a requirement that this technology meet the needs of consumers. What Verizon has been able to do is to identify consumer needs and then utilize their abilities in applied research to meet those needs.

This synthesis represents the most significant use of research for Verizon. The company also uses research to measure the effectiveness of its advertising campaigns. One outcome of this research was that the company changed its name from Bell Atlantic to Verizon. This was based on research that indicated the wireless brand had stronger recognition and a better reputation in the marketplace than the main brand.

There are a handful of ways in which Verizon can improve its research program. The typical research process is to use surveys to find out what customers desire and then use exploratory and applied techniques to devise products and services that meet those needs. One drawback to this is that it omits those needs which the customers do not conceive. Customers typically view product improvements in terms of incremental changes to the existing product. They have limited capacity to conceive of entirely new products. In an industry characterized by intense competition and technological leaps, it is precisely those game-changing innovations that win companies market share.

Yet, Verizon seems content to let their partners, such as Research in Motion, take the lead with regards to product innovation. Thus, I would add another vein of exploratory research to Verizon's research mix. They should use a more open-ended exploratory form of research to help find untapped potential in the market. They should take this research in-house, so that their product development staff have access to the primary data. This will allow them to interpret the data in ways that foster innovative product development.