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Exploring a Measurement of Analytics Capabilities

Exploring a Measurement of Analytics Capabilities Abstract Changes in the volume and velocity of data have led many organizations to consider assessing and improving analytics capabilities. The purpose of this research is to describe a methodology developed to assess organizations’ analytics capabilities and explore the empirical value of data collected using this methodology. The measurement for analytics capabilities was developed by IBM during 2009–11 marketing efforts. To assess the data’s empirical value, we investigate whether measurements of analytics capabilities are internally consistent, associated with decisions to invest in analytics software and hardware, and able to explain firm profitability. In analyzing consistency, we find a natural sequence in the development of analytics capabilities. Exploring decisions to invest in analytics, we discover that firms with higher levels of capabilities are more likely to invest, as are firms that are larger and located in more profitable industries. However, we find no relationship between analytics capabilities and firm profitability. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Economics Springer Journals

Exploring a Measurement of Analytics Capabilities

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References (32)

Publisher
Springer Journals
Copyright
2016 National Association for Business Economics
ISSN
0007-666X
eISSN
1554-432X
DOI
10.1057/be.2016.9
Publisher site
See Article on Publisher Site

Abstract

Abstract Changes in the volume and velocity of data have led many organizations to consider assessing and improving analytics capabilities. The purpose of this research is to describe a methodology developed to assess organizations’ analytics capabilities and explore the empirical value of data collected using this methodology. The measurement for analytics capabilities was developed by IBM during 2009–11 marketing efforts. To assess the data’s empirical value, we investigate whether measurements of analytics capabilities are internally consistent, associated with decisions to invest in analytics software and hardware, and able to explain firm profitability. In analyzing consistency, we find a natural sequence in the development of analytics capabilities. Exploring decisions to invest in analytics, we discover that firms with higher levels of capabilities are more likely to invest, as are firms that are larger and located in more profitable industries. However, we find no relationship between analytics capabilities and firm profitability.

Journal

Business EconomicsSpringer Journals

Published: Jan 1, 2016

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