Business Analytics Capabilities and Use: A Value Chain Perspective

Abstract

This paper presents a mapping of the business analytics (BA) capabilities of a firm from a value chain lens similar to Porter’s (Harv Bus Rev 79:62–78, 2001) internet capabilities framework. The generally accepted classification of analytics: descriptive, predictive and prescriptive, is used as basis for mapping BA capabilities. Using an extensive search of the academic and practitioner literature, analytics applications were analyzed and mapped onto the value chain framework. Given the increased interest and investment in BA, it is important to have a good understanding of what analytics capabilities firms use to enhance value through its value chain activities. We illustrate exemplar uses of BA applications, tools and technologies used by firms. Preliminary results suggest that organizations are focusing on application of analytics where the outcome is easily measurable compared to application of analytics in other activities where it is harder to measure a direct value.