A framework for business analytics in performance management

Abstract

PurposeIncreased business competition requires even more rapid and sophisticated information and data analysis. These requirements challenge performance management to effectively support the decision making process. Business analytics is an emerging field that can potentially extend the domain of performance management to provide an improved understanding of business dynamics and lead to a better decision making. The purpose of this positional paper is to introduce performance management analytics as a potential extension of performance management research and practice. The paper clarifies the possible application areas of business analytics and their advantages within the context of performance management.Design/methodology/approachThe paper employs a literature based analysis and from this a conceptual argument is established. Finally, a business analytical model is presented to be used to undertake future research.FindingsThe paper clarifies the possible application areas of business analytics and their advantages within the context of organizational performance management.Originality/valueThe main implication is that the paper provides evidence of the use of business analytics for understanding organizational performance. Several insights are provided for management accounting research and education.

Supplier sustainability assessment for the UK defence industry

“…Also, these measures were ranked based on the feasibility and importance scores and presented in the order of importance as shown in Figure 3 (note that most measures under the quality and delivery dimension are of equal importance). Schlafke et al (2013) stated the need to understand the rationale behind the choice of performance measures in order to ensure appropriateness. Teeratansirikool et al (2013) also emphasised the need to employ appropriate measures which are in line with an organisation's strategy to carry out performance measurement.…”

“…Also, business analytics approaches and procedures have been introduced to be used in combination with other systems to gain information, analyse and predict outcomes of problem solutions. Schlafke et al (2013) introduced performance management analytics as an instrument to understand relevant business dynamics and control key performance drivers, in order to improve the operations of organisation. However, more effort could be expended in order to ensure the sustainability of suppliers as diversity of industries (market forces) requires diversity of innovation to ensure sustainability since no universal solution is optimal for all firms (Trkman et al, 2010).…”

How do top- and bottom-performing companies differ in using business analytics?

“…Sharma et al 2014;Cao et al 2015), operations and performance (e.g. Trkman et al 2010;Bronzo et al 2013;Schläfke et al 2013;Mihalis and Michalis 2016), innovation (e.g. Kiron et al 2012c), and competitive advantages (e.g.…”

Barriers to Predictive Analytics Use for Policy Decision-Making Effectiveness in Turbulent Times: A Case Study of Fukushima Nuclear Accident

“…In the private sector, which faces not only turbulent but also competitive decision environments, big data, business intelligence, and business analytics have been increasingly adopted and used to enhance organizational, analytical capabilities such as organizational memory, information integration, insight creation and visual presentation [43], managerial decision-making effectiveness [10], organizational performance [30,44], and supply chain performance [51,56]. In contrast, while the use of big data [21], business intelligence, and business analytics tools by large-size local governments in the U.S. has been studied for enhanced public services in the e-government field [13], there remains a relative lack of knowledge and understanding about effective business analytics use in a policy decision-making context in turbulent times.…”