How Does Business Analytics Contribute to Business Value?

This paper presents a model, synthesized from the literature, of factors that explain how business analytics contributes to business value. It also reports results from a preliminary test of that model. The model consists of two parts: a process and a variance model. The process model depicts the analyze-insight-decision-action process through which use of an organization’s business-analytic capabilities create business value. The variance model proposes that the five factors in Davenport et al.’s (2010) DELTA model of BA success factors, six from Watson and Wixom (2007), and three from Seddon et al.’s (2010) model of organizational benefits from enterprise systems, assist a firm to gain business value from business analytics.

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The University of Mary Hardin Baylor