Big Data Analytics Capability, Business Strategy, and Firm Performance

This report explores the critical role of big data analytics capability (BDAC) in shaping business strategy and enhancing firm performance. It begins by highlighting the increasing importance of big data in today's business environment and the potential for BDAC to provide competitive advantages. The report introduces a model based on resource-based theory and sociomaterialism to analyze BDAC, which encompasses dimensions of infrastructure, talent, and technology capabilities. It emphasizes the significance of technology flexibility and robust data management in leveraging the value of big data. The report also references key research in the field, underscoring the positive associations between BDAC components and business strategy alignment, ultimately leading to improved organizational outcomes and competitive advantages. The report concludes by emphasizing the importance of aligning analytics capabilities with the overall business strategy to harness the full potential of big data.

Running head: ENTERPRISE ARCHITECTURE& IT STRATEGY
ENTERPRISE ARCHITECTURE& IT STRATEGY
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1ENTERPRISE ARCHITECTURE& IT STRATEGY
Big Data and Business Strategy
Big data’s recent interest has led several organizations in developing big data in order for
enhancing performance of the organizations. It is seen that few organizations achieved big
impact by big data. For addressing the issue, model drawing of BDAC is proposed in this paper
on resource based theory (RBT) as well as sociomaterialism’s entanglement view. It is observed
that BDAC as hierarchical model includes three major dimension as well as 11 sub-dimensions.
Organizations are challenged increasingly by the big data that emerged as an opportunity as well
as productivity’s exciting frontier (Akter, et al., 2016). Big data analytics capability (BDAC) is
considered widely for transforming way by which business is done by the organizations. There is
potential in BDAC in transforming management practice and theory. This is future big thing for
innovation. Incessant growth within investment of BDAC continues as organizations search for
competitive advantage.
Big data’s concept could be defined as huge amounts of several observational data that
support decisions’ different types. Big data’s definition focuses on greater scope for information
that consists of information of real time, media data’s non-traditional form, data of new
technology, data of social media, current buzz-word and large amount of data. BDAC could be
termed as competence for providing business insights by using infrastructure, talent capability
and data management for transforming business into competitive force (Mazzei & Noble, 2017).
BDAC has ability in using big data in decision making that is crucially connected with business
strategy of the organization.
Creating analytics environment where capability and strategy are aligned well in order for
achieving competitive advantages. However, dimensions of BDAC differ in terminology.

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Infrastructure capability of BDA and management capability of BDA are reflected in taxonomy
schemes. BDAC was found in having positive association to every primary dimensions of talent
capability of BDA (Vidgen, 2020). It is identified that technology capability of BDA as key
component for BDAC, which emphasize need of versatility for platform of analytics so that data
could be connected by it form several functions across organization, created robust models and
ensures flow of information. In environment of big data, it is crucial to have technology
flexibility to embrace valuable and voluminous data from different sources.

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References
Akter, S., Wamba, S. F., Gunasekaran, A., Dubey, R., & Childe, S. J. (2016). How to improve
firm performance using big data analytics capability and business strategy
alignment?. International Journal of Production Economics, 182, 113-131.
Mazzei, M. J., & Noble, D. (2017). Big data dreams: A framework for corporate
strategy. Business Horizons, 60(3), 405-414.
Vidgen, R. T. (2020). Creating business value from Big Data and business analytics:
organizational, managerial and human resource implications.