Sensegiving in organizations via the use of business analytics

Abstract

PurposeBusiness analytics (BA) has been a breakthrough technological development in recent years. Although scholars have suggested several solutions in using these technologies to facilitate decision-making, there are as of yet limited studies on how analysts, in practice, improve decision makers' understanding of business environments. This study uses sensemaking theory and proposes a model of how data analysts generate analytical outcomes to improve decision makers' understanding of the business environment.Design/methodology/approachThis study employs an interpretive field study with thematic analysis. The authors conducted 32 interviews with data analysts and consultants in Australia and New Zealand. The authors then applied thematic analysis to the collected data.FindingsThe thematic analysis discovered four main sensegiving activities, including data integration, trustworthiness analysis, appropriateness analysis and alternative selection. The proposed model demonstrates how these activities support the properties of sensemaking and result in improved decision-making.Research limitations/implicationsThis study provides strong empirical evidence for the theory development and practice of sensemaking. It brings together two distinct fields – sensemaking and business analytics – and demonstrates how the approaches advocated by these two fields could improve analytics applications. The findings also propose theoretical implications for information system development (ISD).Practical implicationsThis study demonstrates how data analysts could use analytical tools and social mechanisms to improve decision makers' understanding of the business environment.Originality/valueThis study is the first known empirical study to conceptualize the theory of sensemaking in the context of BA and propose a model for analytical sensegiving in organizations.