The role of an open analytics culture and analytics skills in adopting real-time supply chain analytics for higher performance

Abstract

PurposeThe study objective was to understand what components of organizational culture and capability combined with analytic skillsets are needed to allow organizations to exploit real-time analytic technologies to create supply chain performance improvements.Design/methodology/approachThe authors relied on information processing theory to support a hypothesized model, which is empirically tested using an ordinary least squares equation model, and survey data from a sample of 208 supply chain executives across multiple industries.FindingsThe authors found strong support for the concept that real-time analytics will require specialized analytical skills for the managers who use them in their daily work, as well as an analytics-focused organizational culture that promotes data visibility and fact-based decision-making.Practical implicationsBased on the study model, the authors found that a cultural bias to embrace analytics and a strong background in statistical fluency can produce decision-makers who can make sense of a sea of data, and derive significant supply chain performance improvements.Originality/valueThe research was initiated through five workshops and presentations with supply chain executives leading real-time analytics initiatives within their organizations, which were then mapped onto survey items and tested. The authors complement our findings with direct observations from managers that lend unique insights into the field.