Management challenges in creating value from business analytics

Abstract

The popularity of big data and business analytics has increased tremendously in the last decade and a key challenge for organizations is in understanding how to leverage them to create business value. However, while the literature acknowledges the importance of these topics little work has addressed them from the organization's point of view. This paper investigates the challenges faced by organizational managers seeking to become more data and information-driven in order to create value. Empirical research comprised a mixed methods approach using (1) a Delphi study with practitioners through various forums and (2) interviews with business analytics managers in three case organizations. The case studies reinforced the Delphi findings and highlighted several challenge focal areas: organizations need a clear data and analytics strategy, the right people to effect a data-driven cultural change, and to consider data and information ethics when using data for competitive advantage. Further, becoming data-driven is not merely a technical issue and demands that organizations firstly organize their business analytics departments to comprise business analysts, data scientists, and IT personnel, and secondly align that business analytics capability with their business strategy in order to tackle the analytics challenge in a systemic and joined-up way. As a result, this paper presents a business analytics ecosystem for organizations that contributes to the body of scholarly knowledge by identifying key business areas and functions to address to achieve this transformation.

Big Data Analytics Capabilities and Innovation: The Mediating Role of Dynamic Capabilities and Moderating Effect of the Environment

“…In addition, they are transparent about data access restrictions and governance practices (Tallon, Ramirez and Short, 2013). Nevertheless, owing to the constantly evolving technological landscape, it is important that a logic of continuous learning is infused in organizations that invest in big data (Vidgen, Shaw and Grant, 2017).…”

“…Becoming a data-driven organization requires that data analytics is part of the competitive strategy of the firm, that governance structures are in place, and that processes and structures are put into action to enable seamless flow of data throughout the firm breaking down departmental silos (Tallon, Ramirez and Short, 2013). Successful big data analytics initiatives have proved to be complex matters, which depend on a firm's ability simultaneously to harness multiple resources and capabilities, including people, technology, data, processes and structures within a business context, and deploy them synergistically (Vidgen, Shaw and Grant, 2017). Several case reports showcase the significance of developing a BDAC, with a prominent example being that of Southwest Airlines, described in the work of Erevelles et al (2016).…”

Deliberate storytelling in big data analytics adoption

“…Organizations aiming to integrate BDA into their daily routines at the individual level struggle with the elusiveness of the BDA concept, the transformative effects of big data, and a lack of knowledge about and experience with managing disruptive BDA technology (Caesarius & Hohenthal, ; Kwon, Lee, & Shin, ). The unwillingness of employees to accept a new and unfamiliar technology (Lyytinen & Rose, ) and a shift in problem‐solving analytical skills (Vidgen, Shaw, & Grant, ) impede the individual use of BDA on a daily basis. Employees face the complexity of processing and interpreting big data (Bose, ), insufficient data quality, security and privacy (Clarke, ; Sivarajah et al, ), and a lack of understanding of how BDA creates strategic business value in an organization (Beath, Becerra‐Fernandez, Ross, & Short, ).…”

Book review of: Metaheuristics for Business Analytics. A Decision Modeling Approach by Abraham Duarte, Manuel Laguna,and Rafael Martí

“…However, the more sophisticated the research methods and techniques become, the more difficult their use for solving the practical BA problems proves to be. Consequently, the shortage of knowledge of analytics methods and approaches has grown into a key challenge to practitioners in their efforts to build business analytics and data driven organization (Vidgen, Shaw, & Grant, 2017). This makes the gap between researcher and practitioners bigger (Rynes, Bartunek, & Daft, 2001).…”