IMPACT OF BUSINESS ANALYTICS ON INNOVATION

Abstract

The development of Big Data and Business Analytics (BA) has provided unprecedented opportunities for organizations to innovate. With new and unique information gained from BA, companies are able to develop innovations or improve existing products / services. However, few studies have investigated how BA contributed to the success of the company's re-designation. This study aims to address this gap. From the point of view of data processing and use, a research model is proposed and strongly validated by data collected from a UK business survey. Evidence from a 296 respondent survey supports a research model that provides a focused and validated view of BA's contribution to innovation. Significant findings suggest that BA directly promotes environmental scaling which also helps to improve the company's innovation in terms of new product innovation and purpose. However, the impact of the BA contribution will be enhanced by the role of data mediation driven by data in the organization. Data-driven culture directly affects the innovation of a new product, but indirectly on product understanding through environmental scanning. The findings also confirm that environmental scans have a direct impact on the innovation and innovation of products that also enhance competitive advantage. Model test results also reveal that the success of innovation can be influenced by many other factors that need to be considered close to BA applications.