Using Business Analytics for Strategic Alignment and Organisational Transformation

Abstract

Organisations use business analytics (BA) systems to create value and provide competitive advantage. They frequently use BA systems to respond quickly to market changes and customer demand, and for market differentiation with better customer service and new types of products and services. The authors argue that BA systems can also enable alignment between business strategy and information technology (IT) strategy and support organisational transformation. The authors use a single case study to explain how a global data warehouse, standardized metrics and sophisticated reporting capabilities supported the strategic transformation of a diversified and multi-layered international mining company into a unified and integrated global organisation. They identify a number of core technology, management, culture, governance and people related capabilities that were crucial to the success of the global transformation initiative. Two important implications of the case study are the importance of BA systems in the alignment of IT and business strategy and the synergistic interaction of BA systems and other organizational resources in achieving benefits.