Santiagorivera 2015
Santiagorivera 2015
Santiagorivera 2015
To cite this article: David Santiago Rivera & Graeme Shanks (2015): A Dashboard to
Support Management of Business Analytics Capabilities, Journal of Decision Systems, DOI:
10.1080/12460125.2015.994335
Taylor & Francis makes every effort to ensure the accuracy of all the information (the
“Content”) contained in the publications on our platform. However, Taylor & Francis,
our agents, and our licensors make no representations or warranties whatsoever as to
the accuracy, completeness, or suitability for any purpose of the Content. Any opinions
and views expressed in this publication are the opinions and views of the authors,
and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content
should not be relied upon and should be independently verified with primary sources
of information. Taylor and Francis shall not be liable for any losses, actions, claims,
proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or
howsoever caused arising directly or indirectly in connection with, in relation to or arising
out of the use of the Content.
This article may be used for research, teaching, and private study purposes. Any
substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing,
systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &
Conditions of access and use can be found at http://www.tandfonline.com/page/terms-
and-conditions
Journal of Decision Systems, 2015
http://dx.doi.org/10.1080/12460125.2015.994335
Business analytics (BA) systems create value and provide competitive advantage for
Downloaded by [Gazi University] at 16:38 05 February 2015
1. Introduction
Business analytics (BA) systems involve the use of BA capabilities and technologies to
collect, transform, analyse and interpret data to support decision-making (Cosic,
Shanks, & Maynard, 2012; Davenport & Harris, 2007). BA capabilities and technolo-
gies comprise data warehousing, reporting, online analytical processing (OLAP), dash-
boarding, data visualisation, predictive modelling and forecasting systems. BA systems
provide value to organisations by improving business processes, supporting decision-
making (Carte, Schwarzkopf, Shaft, & Zmud, 2005; Kohavi, Rothleder, & Simoudis,
2002; Piccoli & Watson, 2008) and providing competitive advantage (Davenport &
Harris, 2007).
While a number of research studies have explained how and why BA systems can
provide value to organisations using the resource-based view (RBV; e.g. Shanks &
Bekmamedova, 2012), few have addressed the strategic management of BA capabili-
ties. To provide strategic value and competitive advantage, BA capabilities should be
valuable, rare and inimitable, and have the support of the organisation (VRIO; Barney,
1997). In order to strategically manage BA capabilities, managers need to understand
and develop the BA capabilities within their organisations along these four dimensions.
In this paper, we discuss how each of these dimensions might be measured. We design,
develop and evaluate a prototype tool to enable the measures to be visualised on a
dashboard to support their strategic management.
There are three motivations for our research. First, BA systems can provide compet-
itive advantage and are an important strategic investment for many organisations
(Davenport, Harris, & Morison, 2010). Second, BA is consistently ranked highly
amongst the concerns of chief information officers who need to understand how to
manage the development of BA capabilities (Hagerty, Sallam, & Richardson, 2012).
Third, although there are a number of BA capability frameworks (e.g. Cosic et al.,
2012), there are currently no tools available to support the measurement and strategic
management of BA capabilities. Providing managers with information about the BA
capabilities in their organisations should potentially be of great value.
The research question we explore in this paper is: How can the management of BA
capabilities be effectively supported?
To answer this question, we use a design science research approach and develop
and evaluate a prototype dashboard for the VRIO assessment of BA capabilities.
The paper is organised as follows. First we discuss the background to the study,
Downloaded by [Gazi University] at 16:38 05 February 2015
including BA systems and capabilities, the resource-based view and capability assess-
ment, and dashboard design. We then describe the design science research approach
used in the study. Following that, we describe the design and development of the proto-
type dashboard to support assessment of BA capabilities. We then present the evalua-
tion of the prototype dashboard. Finally, we discuss limitations of the study, and
implications of the prototype dashboard for researchers and practitioners, and suggest
directions for future research.
2. Background
Four important areas of the literature are analysed in this section. First, we discuss BA
systems and explain how they provide business value. Second, we discuss the RBV
and define the VRIO dimensions of capabilities. Third, we define BA capabilities based
on the framework of Cosic et al. (2012). Fourth, we discuss the dashboard design
principles we used in designing the BA capability dashboard.
BA capability Description
Decision rights The assignment of decision rights and accountabilities, by determining
those who are responsible for making each kind of decision, those who will
provide input for the decision and how these people will be held
accountable
Strategic alignment The alignment of an organisation’s BA initiatives with its business strategy,
largely determined by the level of understanding that exists between the
strategic and BA managers
Dynamic BA The continuous renewal of an organisation’s BA resource base and
capabilities organisational capabilities in order to respond to changes in dynamic
business environments;it involves searching for, selecting and funding and
implementing new opportunities
Change To manage people who are impacted by BA initiatives to accept and
management embrace technological and process changes
BA: business analytics.
BA capability Description
Evidence-based A culture where formal authority, reputation, intuition and ad hoc
management decision-making are superseded by decisions based on data and
quantitative analysis
Embeddedness The extent to which BA has permeated the social fabric of the
organisation and has become ingrained into people’s values and daily
work habits.
Executive leadership The ability of the senior managers within an organisation to infuse a
and support passion for BA and data-driven decision-making throughout the
organisation
Flexibility and agility The level of change readiness within an organisation, relating to how
receptive an organisation’s non-managerial BA personnel are to
respond to changes in the business environment
BA: business analytics.
Journal of Decision Systems 5
BA capability Description
Data management Management of an integrated and high-quality data resource is
crucial to the success of BA
Systems integration The seamless integration of BA systems with operational systems
in order to exploit the capabilities of both systems
Reporting and visualisation The development and utilisation of reports, dashboards,
BA technology scorecards, online analytical processing (OLAP) and data
visualisation technologies to display the output information in a
format that is readily understood by decision-makers
Discovery BA technology The development and utilisation of sophisticated statistical and
data-mining software applications to explore data and identify
useful correlations, patterns and trends and extrapolate them to
forecast what is likely to occur in the future
BA: business analytics.
Downloaded by [Gazi University] at 16:38 05 February 2015
BA capability Description
Technology skills and The skills and knowledge of BA technology specialists, including
knowledge statistics, data management, reporting and visualisation, discovery BA
technologies and information technology in general
Business skills and The skills and knowledge of BA business specialists, including sales,
knowledge finance, marketing, supply chain and production business systems
Management skills and The skills and knowledge of management specialists, who are
knowledge responsible for BA initiatives and projects, both enterprise-wide and
in local business units
Entrepreneurship and The skills and knowledge of technology, business and management
innovation personnel to use BA technologies to develop innovative and more
effective processes and products that result in better organisational
performance and create competitive advantage
BA: business analytics.
Several display media may be used in dashboard design, including graphs, icons,
text and organisers such as tables and spatial maps. Different types of graphs and icons
may be used to communicate different aspects of information; for example, line graphs
are particularly useful for trends and cycles in volatile information. Icons may be used
to communicate the simple meaning of facts in a clear manner. For example, up/downs
may be used to communicate if a measure has increased or decreased. Some informa-
tion is better communicated using simple text, while spatial maps are ideally suited to
display geographic information (Few, 2006).
Things to avoid in dashboard design include using more than one screen to display
the dashboard, separating data that needs to be compared, providing data in the wrong
context, inappropriate displays such as complex three-dimensional graphs that are diffi-
cult for humans to understand, and the use of meaningless variety and complexity in
the design (Few, 2006).
Downloaded by [Gazi University] at 16:38 05 February 2015
3. Research approach
A design science research approach was used in the study. Design science involves the
creation and evaluation of innovative artefacts to enable organisations to accomplish
information-related tasks (Hevner, March, Park, & Ram, 2004; Kuechler & Vaishnavi,
2012). Development of the artefact may be considered ‘proof by demonstration’
(Moody & Shanks, 2003). The artefact in this study is a prototype dashboard to support
the effective management of BA capabilities. It is based in RBV theory, including BA
capabilities and their VRIO measurement, together with dashboard design principles.
Evaluation of the artefact in design science research involves demonstrating the util-
ity, quality and efficacy of the artefact (Hevner et al., 2004). In this study, the artefact
was evaluated using a ‘one-shot case study’ involving a group of surrogate decision-
makers (Moody & Shanks, 2003). The population for the empirical evaluation was
middle-level decision-makers. A sample was formed by opportunistically recruiting a
group of 20 people, each with a minimum of 3 years’ experience in information sys-
tems and BA. Each participant was provided with a brief demonstration of the dash-
board, and then asked to follow a script that required them to use the dashboard for
several decision-making tasks involving BA capabilities. Finally, each participant was
asked to complete a small survey about use of the dashboard.
The survey contained 12 questions about the use of the dashboard, each involving a
5-point Likert scale (ranging from 1 – ‘strongly disagree’ to 5 – ‘strongly agree’). The
first four questions were about the perceived ease of use of the dashboard. These ques-
tions were adapted from the original perceived ease-of-use questions in the technology
acceptance model (Davis, 1989; Moody & Shanks, 2003). The next five questions were
about the perceived usefulness of the dashboard. These questions were adapted from
the original perceived usefulness questions in the technology acceptance model (Davis,
1989; Moody & Shanks, 2003). The final three questions were about the perceived rel-
evance of the dashboard to practice in managing BA capabilities. These were adapted
from a data-quality dashboard-evaluation study reported in Moody and Shanks (2003).
The survey questions can be seen in Table 5 below.
Perceptual measures are widely used in social science research (Neuman, 2010).
They enable subjective measures to be quantified and used in the measurement of con-
structs. Data from the survey were analysed using t-tests to compare the scores
obtained from each question, with the mid-point of the scale (3 – ‘neither disagree or
agree’) using a normal distributed set of values.
Journal of Decision Systems 7
The research approach used was evaluated according to the design science research
guidelines of Hevner et al. (2004). The evaluation is presented below in the discussion
section of the paper.
two-level hierarchy of BA capability area and overall BA capability. Data in the proto-
type dashboard system is based on Cosic et al. (2012), and includes 16 BA capabilities
and four capability areas. For example, the four BA capabilities evidence-based
management (Pfeffer & Sutton, 2006), BA embeddedness (Shanks & Bekmamedova,
2012), executive leadership and support and flexibility and agility are grouped into the
BA culture capability area (Cosic et al., 2012). This enabled the measures in the fact
table to be reported for either individual capabilities or at the aggregated level of
capability areas.
The stakeholder dimension includes a base granularity of individuals within an
organisation, and a two-level hierarchy of stakeholder role (job type) and stakeholder
type (IT or business focus). This enabled the measures in the fact table to be reported
for either individual stakeholders or at the aggregated level of different stakeholder
roles or stakeholder type.
The department dimension includes a base granularity of individual departments
Downloaded by [Gazi University] at 16:38 05 February 2015
within an organisation, and a two-level hierarchy of division and overall company. This
enabled the measures in the fact table to be reported for either individual departments
or at the aggregated levels of division and overall company.
The time dimension comprises a base granularity of month, and a two-level hierar-
chy of quarter and year. This enabled the measures in the fact table to be reported for
either individual months or at the aggregated levels of quarter and year.
The design of the dimensional model supports the management of BA capabilities
using VRIO measures that may be reported at multiples levels of detail by four dimen-
sions. The measures in the fact table may be ‘sliced and diced’ and ‘rolled up and
drilled down’ in multiple ways. This provides data that is suitable for flexible
presentation and manipulation on the dashboard (Kimball & Ross, 2013).
A summary of the results obtained from the study is shown below in Table 5. It
can be seen that the responses to each of the questions were significantly higher than
the mid-point of the scale. Overall, the evaluation showed that the dashboard was
considered easy to use, useful and relevant to practice.
6. Discussion
The BA capability dashboard is aimed at supporting the management of BA capabilities
within organisations. It provides managers with a flexible means of understanding the
levels of value, rarity, inimitability and organisational support of BA capabilities. In
particular, managers can analyse BA capabilities in relation to time (when), stakeholder
(who) and department (where).
Measures for the value, rarity, inimitability and organisational support of each BA
capability must first be collected from relevant stakeholders. The measures could use a
Downloaded by [Gazi University] at 16:38 05 February 2015
linear scale from 0 to 5, reflecting the strength of each capability. Data should be col-
lected periodically, probably every 6 months, to enable meaningful time series analysis.
Data should also be collected from a variety of stakeholders throughout the organisa-
tion, to enable meaningful analysis across different stakeholder types and organisational
departments.
Analysis of BA capability levels using the time dimension provides insight into
which BA capabilities are improving and which are stagnating or becoming worse. This
insight should help managers to understand the strengths and weaknesses in their orga-
nisation’s BA capabilities, and to decide which BA capabilities to invest in. Further-
more, it will provide input to the search and select routines in an organisation’s
dynamic capabilities (Teece, 2009; Teece et al., 1997), and help organisations to gain
insight into which innovations and changes are required.
Analysis of BA capability levels using the stakeholder dimension provides insight
into the different perceptions of BA capabilities by stakeholder roles and types. For
example, discovering that IT-type stakeholders perceive BA capabilities in the BA tech-
nology area to be poor might carry more weight in decision-making than the percep-
tions of business management-type stakeholders. The insight that various types of
stakeholders have differing perceptions might lead to further training rather than an
investment in improving BA capabilities.
Analysis of BA capability levels using the department dimension provides insight
into which parts of an organisation have differing perceptions of BA capability levels.
Investments in BA capabilities can then be better targeted.
examine the utility and potential utility of the artefact, and applied rigorous quantitative
data-analysis techniques. The fourth guideline concerns the research contributions from
the study. We argue that there are important contributions to knowledge in the design
of the artefact and the approach to its evaluation. The artefact combines innovative
insights into the definition and measurement of BA capabilities within organisations.
The evaluation approach provides a useful means of initial evaluation of dashboard
artefacts in a ‘laboratory setting’. The evaluation instrument is based on previously
used and validated measurement scales. The fifth guideline concerns the rigour of the
research design. We have used rigorous methods in both the design and evaluation of
the artefact. The dashboard is based on the RBV, and uses a set of BA capabilities that
have been developed using a combination of existing work and empirical study (Cosic
et al., 2012). The one-shot case study approach used in the empirical evaluation has
been previously used by Moody and Shanks (2003) and incorporates a measurement
instrument based on previously validated scales (Davis, 1989; Moody & Shanks,
Downloaded by [Gazi University] at 16:38 05 February 2015
2003). The sixth guideline concerns design and a search process. We argue that the
application of dashboard design principles, in addition to the underlying theoretical
base of the BA capabilities and measures, utilises available means to ensure that arte-
fact is effective. The final guideline concerns the communication of the design research.
We are reporting our research outcomes to both technology-oriented as well as manage-
ment-oriented audiences, and in both practitioner and academic outlets.
7. Conclusion
Downloaded by [Gazi University] at 16:38 05 February 2015
The design, development and evaluation of the BA capability dashboard has demon-
strated its potential to support management of BA capabilities. There are a number of
limitations of the study. First, the prototype tool needs further refinement. It is currently
a useful starting point to demonstrate the utility of a dashboard for managing BA capa-
bilities, but needs further development to be of use in practice. Second, the evaluation
was limited, although appropriate at this initial stage of development of the dashboard.
More extensive evaluation involving further refined one-shot case studies and,
eventually, action research and in-depth case studies is required.
While BA assets may be readily acquired and are commodities that do not necessarily
provide competitive advantage, organisations need to carefully manage their BA capabili-
ties to successfully compete in turbulent environments (Shanks & Bekmamedova, 2012).
The successful management of BA capabilities, supported by the prototype dashboard for
the VRIO assessment of BA capabilities, has the potential to significantly enhance the
decision support infrastructure within organisations.
Acknowledgements
An earlier version of this paper was presented at the DSS2014 International Federation for Infor-
mation Processing (IFIP) Working Group 8.3 International Conference on DSS. The authors
acknowledge with thanks the feedback provided by the anonymous reviewers of that paper. This
research was supported under the Australian Research Council’s Discovery Projects funding
scheme.
References
Allmendinger, G., & Lombreglia, R. (2005). Four strategies for the age of smart services.
Harvard Business Review, 83, 131–145.
Asadi Someh, I., & Shanks, G. (2013). The role of synergy in achieving value from business
analytics systems. Proceedings of the thirty fourth international conference on information
systems, AISeL.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management,
17, 99–120.
Barney, J. (1995). Looking inside for competitive advantage. The Academy of Management
Executive, 9, 49–61.
Barney, J. (1997). Gaining and sustaining competitive advantage. Reading: Addison-Wesley.
Becker, J., Knackstedt, R., & Pöppelbuß, J. (2009). Developing maturity models for IT
management – a procedure model and its application. Business & Information Systems
Engineering, 3, 213–222.
14 D. Santiago Rivera and G. Shanks
Carte, T., Schwarzkopf, A., Shaft, T., & Zmud, R. (2005). Advanced business intelligence at
cardinal health. MIS Quarterly Executive, 4, 413–424.
Cosic, R., Shanks, G., & Maynard, S. (2012). Towards a business analytics capability maturity
model. Proceedings of the 23rd Australasian conference on information systems, 1–11.
Geelong, Australia.
Davenport, T. H., & Harris, J. G. (2007). Competing on analytics. Boston, MA: Harvard
Business School Press.
Davenport, T. H., Harris, J. G., & Morison, R. (2010). Analytics at work. Boston, MA: Harvard
Business School Press.
Davis, F. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information
technology. MIS Quarterly, 13, 319–340.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic
Management Journal, 21, 1105–1121.
Few, S. (2006). Information dashboard design. O’Reilly North Sebastopol, CA.
Hagerty, J., Sallam, R. L., & Richardson, J. (2012, Feb 6). Magic quadrant for business
intelligence platforms. Gartner Research Note G00225500.
Hevner, A., March, S., Park, J., & Ram, S. (2004). Design science in information systems
Downloaded by [Gazi University] at 16:38 05 February 2015