Leveraging Process Innovation with Business Analytics

Although recognized as increasingly relevant, the relationships between analytical orientation and process innovation are still unclear, specifically the role of analytical resources and capabilities in this association. This paper presents the results of empirical research conducted to investigate these complex links. The empirical data was drawn from 81 companies of different sectors in Brazil. Data analysis was mainly based on path analysis with structural equation modeling. The findings of this study indicate that analytical orientation can leverage process innovation. Moreover, information quality is somehow a more valuable resource to analytical orientation than information technology, and that analytical capabilities, especially analytical leadership, were proven to be more important to sustain analytical orientation than companies' analytical resources. Another important result, also with considerable repercussion in future research on the theme, was the predictive relevance of analytical capabilities for analytical orientation. This was much higher than the predictive relevance shown by analytical resources.

[1]  Jorma Papinniemi,et al.  Creating a model of process innovation for reengineering of business and manufacturing , 1999 .

[2]  Michael D. Mumford,et al.  Exploring the relationship of leadership skills and knowledge to leader performance , 2000 .

[3]  Razia Khan,et al.  Business analytics and supply chain performance: An Empirical Perspective , 2013 .

[4]  Giri Kumar Tayi,et al.  Examining data quality , 1998, CACM.

[5]  Theodoros Evgeniou,et al.  Information Integration and Information Strategies for Adaptive Enterprises , 2002 .

[6]  Peter Trkman,et al.  The impact of business analytics on supply chain performance , 2010, Decis. Support Syst..

[7]  Kenneth K. Boyer,et al.  Innovation-supportive culture: The impact of organizational values on process innovation , 2007 .

[8]  Hajo A. Reijers,et al.  Best practices in business process redesign: an overview and qualitative evaluation of successful redesign heuristics , 2005 .

[9]  T. Davenport.  Competing on analytics. , 2006, Harvard business review.

[10]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[11]  Richard Y. Wang,et al.  Data quality assessment , 2002, CACM.

[12]  K. Moeller,et al.  Integrating business analytics into strategic planning for better performance , 2011 .

[13]  E. A. Fleishman,et al.  Leadership skills for a changing world: Solving complex social problems. , 2000 .

[14]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[15]  Monideepa Tarafdar,et al.  Understanding the influence of information systems competencies on process innovation: A resource-based view , 2007, J. Strateg. Inf. Syst..

[16]  R. Zmud.  Diffusion of Modern Software Practices: Influence of Centralization and Formalization , 1982 .

[17]  Riccardo Silvi,et al.  A framework for business analytics in performance management , 2012 .

[18]  Michael Hammer,et al.  Reengineering Work: Don’t Automate, Obliterate , 1990 .

[19]  Kenneth L. Kraemer,et al.  Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value , 2004, MIS Q..

[20]  S. Gopalakrishnan,et al.  The Dynamics of the Adoption of Product and Process Innovations in Organizations , 2001 .

[21]  Veda C. Storey,et al.  Business Intelligence and Analytics: From Big Data to Big Impact , 2012, MIS Q..

[22]  Narayan Ramasubbu,et al.  How Information Management Capability Influences Firm Performance , 2011, MIS Q..

[23]  Kevin McCormack,et al.  Improving performance aligning business analytics with process orientation , 2013, Int. J. Inf. Manag..

[24]  S. Sambrook,et al.  Towards a multidisciplinary definition of innovation , 2009 .

[25]  Christian Wagner,et al.  Critical success factors revisited: success and failure cases of information systems for senior executives , 2001, Decis. Support Syst..

[26]  James M. Utterback,et al.  A dynamic model of process and product innovation , 1975 .