Role of IT & analytics on business performance

Abstract

The growth of big data has activated overwhelming investments in company analytics fixes, but large scale and dependable empirical proof about the company worth of big data and analytics stays limited. This particular paper provides the end result of an econometric analysis which analyzes the guidance, sign, and magnitude of the connection between firm performance and BDA based on independent dimensions of BDA assets. With a distinctive panel data set which includes comprehensive info regarding BDA treatments run by 814 organizations throughout the timeframe from 2008 to 2014, on one hand, and the financial performance of theirs, on the opposite hand, we calculate the connection between BDA assets and firm efficiency and realize that fresh BDA property are connected with an average of three to seven % improvement in solid efficiency. Nevertheless, we additionally discover substantial disparities in earnings from BDA whenever we think about the market where a firm operates: While firms in IT intensive or maybe very competitive industries are obviously in a position to acquire value from BDA assets, we didn't identify measurable efficiency advancement for firms outdoors these business organizations. Taken collectively, our findings offer strong empirical evidence for the company worth of BDA, but additionally highlight crucial boundary problems.