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Are big data and analytics actually able to increase productivity?

The study examines the relationship between the use of big data and analytics (BDA) and business performance. Professor Dr Jan vom Brocke, Professor Dr Oliver Müller and Maria Fay worked with a unique primary dataset to obtain reliable values using econometric models.

Increase in performance thanks to BDA
The researchers used a dataset provided by one of the world’s leading BDA software companies, which provides detailed information on implementing BDA solutions in 814 companies in the period from 2008 to 2014, and compared them with the financial performance of the companies for each year. The researchers found that using BDA resulted in an average 3.75% increase in corporate productivity. On closer inspection, it can be seen that these effects are more prevalent in IT-driven and highly competitive industries, where companies were able to achieve productivity gains of 6.7% and 5.7% respectively with BDA solutions. By quantifying the extent of these improvements, this study can help decision makers prepare business cases before making investment decisions.

Top 50 journal 
The research team’s study has been published in the Journal of Management Information Systems (JMIS), which the Financial Times ranks as one of the top 50 management journals and is regarded as one of the world’s top 3 information systems journals – a great success for Professor Dr Jan vom Brocke, Professor Dr Oliver Müller and Maria Fay, which underlines the high standard of scientific research at the University of Liechtenstein. Maria Fay is a PhD student at the Institute of Information systems and carried out this study as part of her doctoral thesis project at the University of Liechtenstein.

 

Study: Müller, O., Fay, M., vom Brocke, J. (2018), The effect of big data and analytics on firm performance: An econometric analysis considering industry characteristics, in Journal of Management Information Systems (JMIS), forthcoming (ABDC: A*; ABS: 4; ISI: 3.775; VHB: A)*.