Creating Value From Business Analytics Systems: The Impact Of Strategy

Abstract

Business analytics systems can potentially contribute to firm performance and create competitive advantage. However, these benefits do not always follow from investment in business analytics technology. This paper argues that dynamic capabilities, enabled by business analytics technology, lead to value-creating actions and ultimately to improved firm performance. We develop a theoretical model that explains how organizational strategy relates to both business analytics technology and organizational structure, and impacts value-creating actions. We use the theoretical model to explain the implementation of a CRM system for one type of strategy.