Business analytics and business value: A comparative case study

With growing adoption of business analytics, it is important for investing firms to understand how business value is created from investments. Studies in IT domain have highlighted how higher investment in technology may not bring more returns, rather how IT as an organizational capability acts as a key mediator in value creation. This research extends the model to business analytics, to identify elements of analytics technology assets and business analytics capability and to understand the mechanism of business value creation using multiple case studies. We capture how analytics resources contribute to business performance by developing operational and organizational performance measures.     

Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities

A central question for information systems (IS) researchers and practitioners is if, and how, big data can help attain a competitive advantage. To address this question, this study draws on the resource-based view, dynamic capabilities view, and on recent literature on big data analytics, and examines the indirect relationship between a firm’s big data analytics capability (BDAC) and competitive performance. The study extends existing research by proposing that BDACs enable firms to generate insight that can help strengthen their dynamic capabilities, which, in turn, positively impact marketing and technological capabilities. To test our proposed research model, we used survey data from 202 chief information officers and IT managers working in Norwegian firms. By means of partial least squares structural equation modeling, results show that a strong BDAC can help firms build a competitive advantage. This effect is not direct but fully mediated by dynamic capabilities, which exerts a positive and significant effect on two types of operational capabilities: marketing and technological capabilities. The findings suggest that IS researchers should look beyond direct effects of big data investments and shift their attention on how a BDAC can be leveraged to enable and support organizational capabilities.     

Orchestrating big data analytics capability for sustainability: A study of air pollution management in China

Under rapid urbanization, cities are facing many societal challenges that impede sustainability. Big data analytics (BDA) gives cities unprecedented potential to address these issues. As BDA is still a new concept, there is limited knowledge on how to apply BDA in a sustainability context. Thus, this study investigates a case using BDA for sustainability, adopting the resource orchestration perspective. A process model is generated, which provides novel insights into three aspects: data resource orchestration, BDA capability development, and big data value creation. This study benefits both researchers and practitioners by contributing to theoretical developments as well as by providing practical insights.     

The role of information governance in big data analytics driven innovation

The age of big data analytics is now here, with companies increasingly investing in big data initiatives to foster innovation and outperform competition. Nevertheless, while researchers and practitioners started to examine the shifts that these technologies entail and their overall business value, it is still unclear whether and under what conditions they drive innovation. To address this gap, this study draws on the resource-based view (RBV) of the firm and information governance theory to explore the interplay between a firm’s big data analytics capabilities (BDACs) and their information governance practices in shaping innovation capabilities. We argue that a firm’s BDAC helps enhance two distinct types of innovative capabilities, incremental and radical capabilities, and that information governance positively moderates this relationship. To examine our research model, we analyzed survey data collected from 175 IT and business managers. Results from partial least squares structural equation modelling analysis reveal that BDACs have a positive and significant effect on both incremental and radical innovative capabilities. Our analysis also highlights the important role of information governance, as it positively moderates the relationship between BDAC’s and a firm’s radical innovative capability, while there is a nonsignificant moderating effect for incremental innovation capabilities. Finally, we examine the effect of environmental uncertainty conditions in our model and find that information governance and BDACs have amplified effects under conditions of high environmental dynamism.     

Toward the development of a big data analytics capability

The era of big data has begun such that organizations in all industries have been heavily investing in big data initiatives. We know from prior studies that investments alone do not generate competitive advantage; instead, firms need to create capabilities that rival firms find hard to match. Drawing on the resource-based theory of the firm and recent work in big data, this study (1) identifies various resources that in combination build a big data analytics (BDA) capability, (2) creates an instrument to measure BDA capability of the firm, and (3) tests the relationship between BDA capability and firm performance. Results empirically validate the proposed theoretical framework of this study and provide evidence that BDA capability leads to superior firm performance.     

Actualizing big data analytics affordances: A revelatory case study

Drawing on a revelatory case study, we identify four big data analytics (BDA) actualization mechanisms: (1) enhancing, (2) constructing, (3) coordinating, and (4) integrating, which manifest in actions on three socio-technical system levels, i.e., the structure, actor, and technology levels. We investigate the actualization of four BDA affordances at an automotive manufacturing company, i.e., establishing customer-centric marketing, provisioning vehicle-data-driven services, data-driven vehicle developing, and optimizing production processes. This study introduces a theoretical perspective to BDA research that explains how organizational actions contribute to actualizing BDA affordances. We further provide practical implications that can help guide practitioners in BDA adoption.     

Optimizing the energy efficiency of chiller systems in the semiconductor industry through big data analytics and an empirical study

Big data analytics is playing a more and more prominent role in the manufacturing industry as corporations attempt to utilize vast amounts of data to optimize the operation of plants and factories to gain a competitive advantage. Since the advent of Industry 4.0, also known as smart manufacturing, big data analytics, combined with expert domain knowledge, is facilitating ever-greater levels of speed and automaticity in manufacturing processes. The semiconductor industry is a fundamental driver of this transformation; moreover, due to the highly complex and energy-consuming nature of the semiconductor manufacturing process, semiconductor fabrication facilities (fabs) can also benefit greatly from incorporating big data analytics to improve production and energy efficiency. This paper developed a big data analytics framework, along with an empirical study conducted in collaboration with a semiconductor manufacturer in Taiwan, to optimize the energy efficiency of chiller systems in semiconductor fabs. Chiller systems are one of the most energy-consuming systems within a typical modern fab. The developed big data analytics framework allows production managers to ensure that chiller systems operate at an optimized level of energy efficiency under dynamically changing conditions, while fulfilling the chilling demands. Compared to the commonly-used heuristics previously employed at the fab to tune chiller system parameters, by the utilization of big data analytics, it is shown that fabs can achieve substantial energy savings, greater than 12%. The developed framework and the lessons learned from the empirical study are not only generalizable but also useful for practitioners who are interested in applying big data analytics to optimize the performance of other equipment systems in fabs.     

Disciplined autonomy: How business analytics complements customer involvement for digital innovation

The rise of big data and the fluid boundaries of digital products are driving companies to use business analytics (BA) to power their customer involvement. The complementarity view offers unique competence to generate value from BA because capability complementarity is less likely to be replicated or imitated. Unlike prior studies on BA-enabled value realization, our research investigates the interactions of BA and customer involvement capabilities using the complementarity view. We tested our model using data collected from 317 IT companies in China. Our results suggest that BA value realization requires both a top-down mechanism in which BA skills provide global guidance for alignment with a company’s goals and a bottom-up mechanism in which BA culture empowers local autonomy for adaptation to ever-changing needs. Our BA-complemented mechanisms provide research and practice with a way to concurrently use BA and customer involvement capabilities to address the duality of digital innovation. We further suggest that BA skills are necessary but insufficient for digital innovation because BA culture demonstrates a stronger effect in complementing organizations’ existing capabilities than BA skills do.     

An integrated big data analytics-enabled transformation model: Application to health care

A big data analytics-enabled transformation model based on practice-based view is developed, which reveals the causal relationships among big data analytics capabilities, IT-enabled transformation practices, benefit dimensions, and business values. This model was then tested in healthcare setting. By analyzing big data implementation cases, we sought to understand how big data analytics capabilities transform organizational practices, thereby generating potential benefits. In addition to conceptually defining four big data analytics capabilities, the model offers a strategic view of big data analytics. Three significant path-to-value chains were identified for healthcare organizations by applying the model, which provides practical insights for managers.     

A novel virtual node approach for interactive visual analytics of big datasets in parallel coordinates

Big data is a collection of large and complex ​datasets that commonly appear in multidimensional and multivariate data formats. It has been recognized as a big challenge in modern computing/information sciences to gain (or find out) due to its massive volume and complexity (e.g. its multivariate format). Accordingly, there is an urgent need to find new and effective techniques to deal with such huge ​datasets. Parallel coordinates is a well-established geometrical system for visualizing multidimensional data that has been extensively studied for decades. There is also a variety of associated interaction techniques currently used with this geometrical system. However, none of these existing techniques can achieve the functions that are covered by the Select layer of Yi’s Seven-Layer Interaction Model. This is because it is theoretically impossible to find a select of data items via a mouse-click (or mouse-rollover) operation over a particular visual poly-line (a visual object) with no geometric region. In this paper, we present a novel technique that uses a set of virtual nodes to practically achieve the Select interaction which has hitherto proven to be such a challenging sphere in parallel coordinates visualization.     

The promising future of healthcare services: When big data analytics meets wearable technology

As policy-makers and business practitioners across the globe expend extraordinary effort toward the field of e-health, the thriving development of healthcare-wearable technology is creating great opportunities and posing a remarkable future for healthcare services. This paper employs a game theory model to investigate the dynamics of wearable device market. We extend the two-dimensional product differentiation model by incorporating consumer diversity, consumer density, and firms’ big data analytics (BDA) investment strategy. Our model reveals that with differentiated consumer densities firms are more likely to engage in quality competition and the firm that invests in BDA can achieve higher profits. Furthermore, the overall quality of biomedical and healthcare services can be improved under various market conditions. Our findings provide practical guidance to wearable device manufacturers on optimizing competition strategies and offer insights to social planners on potential policy-making to promote better healthcare services.     

Using big data analytics to extract disease surveillance information from point of care diagnostic machines

This paper explains a novel approach for knowledge discovery from data generated by Point of Care (POC) devices. A very important element of this type of knowledge extraction is that the POC generated data would never be identifiable, thereby protecting the rights and the anonymity of the individual, whilst still allowing for vital population-level evidence to be obtained. This paper also reveals a real-world implementation of the novel approach in a big data analytics system. Using Internet of Things (IoT) enabled POC devices and the big data analytics system, the data can be collected, stored, and analyzed in batch and real-time modes to provide a detailed picture of a healthcare system as well to identify high-risk populations and their locations. In addition, the system offers benefits to national health authorities in forms of optimized resource allocation (from allocating consumables to finding the best location for new labs) thus supports efficient and timely decision-making processes.     

Debating big data: A literature review on realizing value from big data

Big data has been considered to be a breakthrough technological development over recent years. Notwithstanding, we have as yet limited understanding of how organizations translate its potential into actual social and economic value. We conduct an in-depth systematic review of IS literature on the topic and identify six debates central to how organizations realize value from big data, at different levels of analysis. Based on this review, we identify two socio-technical features of big data that influence value realization: portability and interconnectivity. We argue that, in practice, organizations need to continuously realign work practices, organizational models, and stakeholder interests in order to reap the benefits from big data. We synthesize the findings by means of an integrated model.     

Data analytics and firm performance: An empirical study in an online B2C platform

Data analytics has become an increasingly eye-catching practice in both the academic and the business communities. The importance of data analytics has also prompted growing literature to focus on the design of data analytics. However, the boundary conditions for data analytics in creating value have been largely overlooked in the literature. The objective of this article therefore is to examine the business value of data analytics usage and explore how such value differs in different market conditions. We rely on an online B2C platform as our empirical setting and obtain several important insights. First, both demand-side and supply-side data analytics usage has a positive effect on the performance of merchants. Second, when merchants’ product variety is high, the influence of usage toward demand-side data on performance is strengthened, whereas such impact is weakened for supply-side data analytics. Third, when competitive intensity is high, the performance implication of demand-side data analytics usage is strengthened, whereas such impact is not strengthened for supply-side data analytics. This study contributes by advancing the overall understanding of business value of data analytics.     

Business intelligence and analytics use,innovation ambidexterity,and firm performance: A dynamic capabilities perspective

To survive in a dynamic and hyper-competitive business environment, firms are compelled to simultaneously introduce incremental and radical innovations. While it is recognised that business intelligence and analytics (BI&A) can support innovation and provide organisational value, the literature provides a limited understanding of its impact on balancing different innovation activities and ensuring performance gains. In this study, we examine the relationship between BI&A use, innovation ambidexterity, and firm performance by relying on the process theory of IS value creation as well as the dynamic capabilities perspective. We test our model using data collected from medium- and large-sized firms in Slovenia, applying partial least squares modelling. The results support the notion that BI&A use is positively associated with successful balancing between explorative and exploitative innovation activities, which in turn enhances firm performance. Our results also indicate that innovation ambidexterity is enhanced in two ways: indirectly through interaction with the firm’s absorptive capacity, and directly by increasing the possibilities of faster experimentation with offerings of products or services and improved predictability of the value of new products or services.     

Business analytics maturity of firms: an examination of the relationships between managerial perception of IT,business analytics maturity and success

This study develops a measure for business analytics (BA) maturity and empirically examines the relationships between managerial perception of IT, BA maturity and BA success. The findings suggest that (1) BA maturity can be measured via BA integration & management support, process-level benefits of BA and technology & data analytics capabilities, (2) BA maturity positively affects organizations’ overall BA success, and (3) managerial perception of IT positively influence organizations’ achievement of BA maturity.     

The value of big data for credit scoring: Enhancing financial inclusion using mobile phone data and social network analytics

Credit scoring is without a doubt one of the oldest applications of analytics. In recent years, a multitude of sophisticated classification techniques have been developed to improve the statistical performance of credit scoring models. Instead of focusing on the techniques themselves, this paper leverages alternative data sources to enhance both statistical and economic model performance. The study demonstrates how including call networks, in the context of positive credit information, as a new Big Data source has added value in terms of profit by applying a profit measure and profit-based feature selection. A unique combination of datasets, including call-detail records, credit and debit account information of customers is used to create scorecards for credit card applicants. Call-detail records are used to build call networks and advanced social network analytics techniques are applied to propagate influence from prior defaulters throughout the network to produce influence scores. The results show that combining call-detail records with traditional data in credit scoring models significantly increases their performance when measured in AUC. In terms of profit, the best model is the one built with only calling behavior features. In addition, the calling behavior features are the most predictive in other models, both in terms of statistical and economic performance. The results have an impact in terms of ethical use of call-detail records, regulatory implications, financial inclusion, as well as data sharing and privacy.     

Business analytics for strategic management: Identifying and assessing corporate challenges via topic modeling

Strategic management requires an assessment of a firm's internal and external environments. Our work extends the body of management tools (e.g., SWOT analysis or growth-share matrix) by proposing an automated text mining framework. Here we draw on narrative materials from firms (e.g., financial disclosures) and perform topic modeling so as to identify the key issues faced by an organization. We then quantify the use of language along two dimensions: risk and optimism. This reveals a firm's strengths and weaknesses by identifying business units, activities, and processes subject to risk, while also comparing it with competitors or the market.