Business analytics is a widely used digital technology that employs various methods and techniques to analyse data, aiding organisations in problem-solving and decision-making. The benefits of business analytics include reducing waste in manufacturing, enhancing customer satisfaction, and driving business growth - collectively referred to as business value. However, organisations often face the challenge of business analytics either failing or delivering lower-than-expected business value, making it difficult to justify the significant financial investments required to develop or acquire this digital technology.
Givemore Muchenje explains that the highest business value can only be achieved when there is a perfect alignment between business analytics and its applied tasks. However, organisations face two main challenges in achieving that perfect alignment. There is often a lack of understanding of what business analytics can do, affecting how it can be used successfully. In addition to this, the problems to which business analytics is applied may be unclear. “The understanding of a problem improves as it is addressed, which results in the improvement of the solution,” Muchenje finds in his dissertation.
Alignment between business analytics and tasks leads to higher business value
Focusing only on business analytics may not be enough to achieve business value. Professionals interviewed in different organisations in Finland indicated that business analytics must be combined with sound governance, knowledge sharing and learning abilities. In addition, business analytics matures when combined with the appropriate technology infrastructure.
The results of this dissertation can be used to improve the achievement of business value in organisations. However, it should be noted that business analytics is not a substitute for the other capabilities an organisation should also develop. Recognising the limits of business value when relying solely on business analytics is crucial. Organisations can create and strengthen their capabilities by combining business analytics with other resources. The full potential of business analytics is likely to be realised only when it complements other firm resources.
Public defence on Thursday 7 November
M.Sc. Givemore Muchenje’s doctoral dissertation in the field of business and technology management Determinants of business value realisation from the use of business analytics: The role of fit, complementarity and causal ambiguity will be publicly examined at the Faculty of Management and Business at noon on Thursday 7 November. The venue is auditorium Pieni sali 1 of the Festia building on Tampere University’s Hervanta Campus (address: Korkeakoulunkatu 8, Tampere). The Opponent will be Professor Najmul Islam of LUT University. The Custos will be Professor Marko Seppänen from the Faculty of Management and Business.