Management challenges in creating value from business analytics

Richard Vidgen, Sarah Shaw, David B. Grant

Research output: Contribution to journalArticleScientificpeer-review

110 Citations (Scopus)

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.
Original languageEnglish
Peer-reviewed scientific journalEuropean Journal of Operational Research
Volume261
Issue number2
Pages (from-to)626-639
Number of pages14
ISSN0377-2217
DOIs
Publication statusPublished - 2017
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Analytics
  • Management challenges
  • Value creation
  • Ecosystem

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