Performance management in the data-driven oragnisation

Abstract

Abstract This paper investigates the challenges raised by the “datafication” of the business environment and its role in reshaping future managerial behavior. These challenges arise specifically from new drivers of performance improvement and strategic development, such as cloud computing, big data, and data analytics. We analyze the factors that significantly change the potential influence that information and information asymmetries (“insight”) - resulting from analyzing huge volumes of data - have on organizational competitive advantage. This paper develops a framework to strengthen the value of this insight in an organizational context, and identifies potential areas of future research. The study highlights the conceptual need for, and the role of, analytics as an essential component for deriving the enterprise’s value and performance - from both structured and unstructured data. It also advocates for repositioning knowledge and human expertise in the new data-driven organizational model. It highlights the need for an increasing role for human skills and judgments (“Big Knowledge”) as opposed to a “dictatorship” of data in the new quantified world.