Enhancing Data Analytics Capabilities for Value Realization in Organizations

Digitalization has led to an increase in data from different data sources. Although technology is crucial for a successful digital business, data is also suggested to be a vital factor for business success and organizations have been trying to find ways to utilize data to create business value. Organizations can create business value by utilizing different types of data from different sources. It does not matter which industry the organization operates in; what matters is the strategic vision of translating data into organizational value.

Therefore, it comes down to the question of whether an organization has the capability to utilize its resources, particularly those associated with the deployment of data, to create value and sustain competitive advantage. Just as organizations need different types of capabilities to address various aspects, likewise, they also require data analytics capabilities (DAC) to deploy data and analytics for creating value. This includes changes in business models, ensuring customer satisfaction, boosting operational efficiency, enhancing organizational performance and improving service effectiveness. However, not all organizations are successful in deploying DAC in business. They face many challenges in this regard, including data quality issues, a lack of skilled personnel, cultural misalignment and other managerial challenges. Reports from reputed management consultancy firms reveal an increase in data-related resource investments. However, not all these resource investments contribute to a profitable return. This scenario demands an alternative perspective concerning DAC in business organizations.

The dissertation aims to provide an enriched understanding concerning the enhancement of DAC for value realization in business organizations. Previous studies have researched the resource requirements for building DAC and, consequently, the impact of DAC on organizations’ business outcomes. These studies have primarily focused on what resources are required for building DAC rather than how they are utilized in business. The prior literature has not delved deeply into other aspects of resources, such as resource quality, resource interplay and resource interactions concerning DAC enhancement. There is a lack of knowledge concerning the components of DAC, the interaction between these components for DAC enhancement, and the value realization resulting from DAC enhancement. Therefore, there is a need for an in-depth understanding of the ways in which resources can be combined and applied to enhance DAC in organizations. Accordingly, this dissertation seeks to answer the primary research question: How can business organizations enhance their DAC for value realization?

To address this question, an interpretivist philosophical approach was adopted and a qualitative study conducted. The investigation is presented as five publications, comprising three conference articles and two journal articles. All five articles are qualitative studies, comprising a case study and interviews. The case study focused on a manufacturing context, while the remainder focused on a wide variety of industries, including health care, construction and information technology (IT) consultancy services. Interviews were administered with professionals whose daily work is closely associated with utilizing data and data analytics in business.

Information systems (IS) capabilities, existing organizational culture and data-related resource quality are identified in the dissertation as key components of DAC. Furthermore, the interaction of DAC components is categorized as a socio-technical phenomenon, where these components interact to create value. Additionally, it is demonstrated how these interactions lead to learning at various organizational levels, such as individual, group and organizational, which further leads to the enhancement of DAC. Finally, the research shows that value is realized through improved business performance, the formation of a data-driven culture and the development of digital services. These values can also be categorized into different types of value.

By addressing the research question, this dissertation contributes theoretically to IS and DAC literature. It shows how DAC can be enhanced for value realization, particularly by identifying the components of DAC, their interactions for DAC enhancement and the process of value realization. The findings from this dissertation provide guidance for organizations regarding the identification of DAC components, their improvement from a holistic perspective and their deployment for value realization in business. Organizations can use this dissertation as a foundation upon which to enhance their DAC for value realization. Future research may utilize other qualitative methods or quantitative methods to examine the enhancement of DAC in organizations. Lastly, future studies could target specific organizational sizes and industries to provide a comprehensive understanding of this topic.