Professional Documents
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Big Data Analytics: Degree Project
Big Data Analytics: Degree Project
Key words
Big Data Analytics, Big Data Analytics Capabilities, Qualitative Study, Knowledge-
based view, Competitive Advantage.
Acknowledgements
We would like to thank the organisations that have been with us from the beginning
to the end of our work. Furthermore, we also want to thank the informants who took
their time to respond to our questions and participating in the study. Doing so we
gained valuable information in our endeavour to answer our thesis purpose. We also
want to thank Fisnik Dalipi for being our supervisor, providing feedback as well as
answering any questions that arose during our work.
Växjö, 2021-06-06
Cleas Olsén & Gustav Lindskog
1 Introduction ...................................................................................................... 1
1.1 Background ................................................................................................ 2
1.2 Problem formulation .................................................................................. 4
1.3 Purpose & Research Questions.................................................................. 4
2 Literature review .............................................................................................. 5
2.1 The Origin of Big Data Analytics ............................................................... 5
2.2 Why Big Data Analytics? ........................................................................... 6
2.2.1 Application of BDA (Context) ........................................................... 7
2.2.2 Potential Competitive Advantages ..................................................... 8
3 Theoretical Framework (Theory) ................................................................... 9
3.1 Big Data Analytical Capabilities ............................................................... 9
3.2 Resource-Based View ............................................................................... 10
3.2.1 Tangible resources............................................................................ 10
3.2.2 Intangible resources.......................................................................... 11
3.2.3 Human skills..................................................................................... 11
3.3 Operational Capabilities (Marketing & Technological) .......................... 12
3.4 Dynamic Capabilities ............................................................................... 12
3.5 Notable differences (Dynamic & Operational) ........................................ 13
4 Method ............................................................................................................ 14
4.1 Scientific approach................................................................................... 14
4.2 Data collection ......................................................................................... 14
4.2.1 Sampling........................................................................................... 14
4.2.2 Interviews ......................................................................................... 15
4.3 BDA capabilities framework .................................................................... 15
4.4 Analysis .................................................................................................... 16
4.5 Validity and Reliability............................................................................. 17
4.6 Ethics ........................................................................................................ 17
5 Result ............................................................................................................... 19
5.1 Informants ................................................................................................ 19
5.2 Themes and sub-codes.............................................................................. 20
5.3 Tangible resources ................................................................................... 20
5.3.1 Data .................................................................................................. 20
5.3.2 Technology ....................................................................................... 21
5.3.3 Basic resources ................................................................................. 22
5.4 Human skills ............................................................................................. 23
5.4.1 Technical skills................................................................................. 23
5.4.2 Managerial skills .............................................................................. 24
5.5 Intangible resources ................................................................................. 25
5.5.1 Data-driven culture ........................................................................... 25
5.5.2 Organisational Learning ................................................................... 26
5.6 Performance and Competitive advantage ................................................ 27
5.6.1 Business Process Improvement ........................................................ 27
5.6.2 Products and Services....................................................................... 29
6 Analysis ........................................................................................................... 31
6.1 Tangible Resources .................................................................................. 31
6.2 Human skills ............................................................................................. 31
6.3 Intangible Resources ................................................................................ 32
6.4 Performance and Competitive Advantage................................................ 32
7 Discussion ........................................................................................................ 34
7.1 Tangible Resources .................................................................................. 34
7.2 Human Skills ............................................................................................ 35
7.3 Intangible Resources ................................................................................ 36
7.4 The resources as a whole ......................................................................... 37
7.5 Performance and Competitive Advantage................................................ 37
7.6 Method discussion .................................................................................... 38
8 Conclusion....................................................................................................... 40
8.1 Continued research .................................................................................. 40
References ............................................................................................................... 42
Appendices
Appendix 1 – Consent form
Appendix 2 – Interview guide
1 Introduction
Today we are surrounded by data that can be found practically everywhere. A
manufacturing company gathers data about the product line with sensors, a retailer
has huge amounts of data about its customers and their purchases and the social media
giants have advanced user profiles containing user location, user age and what user
interests are (Chen, Chaing & Storey 2012). Data which has increased in volume over
the years have later been coined and introduced as big data (Diebold 2012) and is
today a well-known term for describing large amounts of data. Even Bocij, Greasley
and Hickie (2019) argue that big data is a well-known term, which constitutes the big
sets of data, that today is being enabled by the sophisticated IT systems available in
this day and age.
Big data analytics (BDA) have during the last decades been a popular topic in the
academic world, as well as the practitioner's world. Chen, Chiang and Storey (2012)
highlight an increase in publishing of articles within big data and business intelligence
from the beginning of the 21st century which started to accelerate at the end of the
decade. Mikalef, Pappas, Krogstie and Pavlou (2020a) describe the same
development but in the current decade. Both studies show how big data, business
intelligence and analytics (BI&A) have been a hot topic because of the value it can
provide to an organisation. As more and more devices are getting connected and
technology moves forward the amount of data becoming available is increasing. More
businesses and organisations have started to realise that the data they collect can be
transformed to opportunities or efficiency to create value.
Challenges exists with big data analytics and the culture of organisations are one of
them. Lacking skills such as technical or managerial are also a challenge for
organisations. McAfee and Brynjolfsson (2012) mention five challenges to overcome
in order to enable big data analytics in organisations. All of these are somehow
connected to the socio-technical aspect. For example, they mention the need for
company culture to shift into using data instead of their intuition or gut-feeling when
making decisions. This is also brought up by Hume and West (2020) which presents
challenges to overcome, but with focus on not-for-profit organisations. They argue
that organisations have to take action with the data they collect, which is in line with
the study by McAfee and Brynjolfsson (2012) where they list the need for human
interaction to find these insights and act upon it as well.
Several studies show that several different benefits exist from utilizing BDA. By
doing so, organisations can sense opportunities, make data driven decisions resulting
in competitive advantage. Côrte-Real, Oliveira and Ruivo (2017) discuss the impact
of BDA applications and the influence it brings which allows knowledge management
on internal and external levels. This creates a flexibility within organisations, which
results in realization of threats and opportunities, market penetration and integration
of new technologies that creates competitive advantages. Furthermore, Thirathon,
Wieder, Matolcsy and Ossimitz (2017) draws to conclusion that big data and BDA
can be supportive in the work of gaining advantage over your competitors. McAfee
and Brynjolfsson (2012) emphasize that data-driven decisions, that are enabled by
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BDA, tend to be better decisions than those which are based on intuition and gut-
feelings.
Studies have been made on current literature investigating areas that could be
interesting or deemed needed to be explored. Mikalef et al. (2020a) argue in a
bibliometric study that there are still unexplored areas within the subject of BDA and
business analytics. They found several research questions that were interesting from
several points of view. Concurrently Wamba, Akter, Edwards and Chopin (2015)
express the lack of empirical research and call on to investigate how big data can
enable and provide value within organisations. For these reasons it can be deduced
that there is a need for further research.
There is a lack of knowledge within the subject and that in turn makes it a possibility
that organisations are missing out on advantages they do not know about. Because of
the popularity of BDA in the past years there is an opportunity to investigate how
Swedish organisations are using this phenomenon and if they have the ability to create
value through BDA. Research within a Swedish context in the subject of BDA exist
but to the best of our ability we could not find the same endeavours as this thesis have
undertaken.
1.1 Background
Actionable knowledge is something that managers should and can use. In order to
create such knowledge culture is important as well as employee’s talents.
Bumblauskas, Nold, Bumblauskas and Igou (2017) state that for organisations to be
successful they need to be able to transform data to information, to knowledge which
leads to actionable knowledge. The Performance Triangle is a method which can be
used to transform big data to actionable knowledge. This is done by developing a
culture in which individuals can focus and use their talents in coalition with their
managers. The managers can then in turn interpret the data and effectively
communicate their findings to who it may concern. Bumblauskas et al. (2017) further
state that these are important pillars in order to maximize BDA usage. They continue
with explaining the usage of dashboards with KPIs to create an easy access of
information for managers and alike. These three, actionable knowledge, Performance
Triangle and dashboards, are what the writers express to be important theoretical
constructs and frameworks in order to utilize big data.
BDA and BI&A is related to each other in some ways. Some recent literature also
uses it as a joint term. Because of the ongoing popularity in BDA, an increase in
published articles have been seen and more academics have started to take an interest.
Most notably was Chen, Chiang and Storey where they investigated how far back in
time, they could find articles about big data. Chen, Chiang and Storey (2012) use
BI&A as a joint term and that big data analytics is a related field which enable new
areas for BI&A. Chen, Chiang and Storey describe BI&A as the mediating methods,
technologies and best-practises in companies when analysing data in order to gain
insight and make better decisions. According to their bibliometric study there is a rise
of articles in big data. This indicates that at the time of the Chen, Chiang and Storey’s
study, big data was a rising subject. They underline this by discussing when they saw
big data appear for the first time in 2001, but it was in 2007 when they started to
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notice its rise (2012). Chen, Chiang and Storey (2012) together with Bumblauskas et
al. (2017), note that the organisations culture is an important part of BI&A.
Furthermore, to help and support such culture, organisations need to transform data
to information. This results in actionable knowledge and is of importance for the
organisation. Integration and communication are also mentioned as an important part.
A more recent research has been conducted and where research questions were
suggested. By doing so it shows that the field of BDA still has several more avenues
to explore. Mikalef et al. (2020a) reveal that an increase has been seen in the last
decade in number of published articles in the subject. In conjunction with increased
connected devices, better performance for computers and the shrunk price of data
storage, growth has been made possible. It has also started to attract academics and
practitioners on how it can be evolved to create value. The authors conduct a study
which consists of mapping current literature and finding unexplored areas and
providing research questions based on their findings. One important question that they
bring to light is which different organisational capabilities through BDA can lead to
value. Mikalef et al. (2020a) continue with more suggestions for possible research
questions which can prove that the subject of BDA is not completely explored.
Mikalef, Krogstie, Pappas and Pavlou (2020b) point out that big data analytics
capabilities (BDAC) are an enabler to BDA. It is noted that past literature focuses
primarily on the tangible resources when investing in BDA initiatives. The authors
argue that there are more than tangible resources, like technology, that play a vital
role in enabling BDA. There is human skill and intangible resources that also have a
need to be accounted for. These three resources, intangible resources, human skills,
and tangible resources are known as the resource-based view. BDAC is linked to
dynamic capabilities which is used to alter or enhance operational capabilities. These
can then lead to competitive performance (2020b). The results of the article showed
that it was several different resources that needed to be used in combination with each
other. It meant that in order for organisations to benefit from BDA it is necessary to
have these resources. Mikalef et al. (2020b) report that the quantitative study they
have undertaken show that organisations need to have a multitude of different
resources working together in order to be able to utilize big data analytics. The authors
note that there are more than investing in technology, collect data and experimentation
with analytics to utilize BDA. It is found that intangible resources, such as data driven
culture, and human skills, such as technical understanding, in conjunction with
tangible resources, create a big data analytic capability. There is also a necessity that
top management is supportive and committed to creating a BDAC. The authors note
that several studies have begun to emphasize of the importance of these factors
(2020b).
In search of evidence that data driven decisions actually improve business
performance, McAfee and Brynjolfsson (2012) found that there was none. Instead,
they took it to themselves to research and prove that it does. Not everyone uses data-
driven decisions but those who utilize it claim they perform better economically and
productively. McAfee and Brynjolfsson (2012) continue by describing how
organisations can embrace big data through five areas. One of these areas is the
company culture. The authors emphasize that managers should not base their
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decisions on hunches or intuition, that a step away from such thinking is a way in the
right direction. They end by emphasizing the important cultural changes are big
within the organisations and that integrity is an imperative question to be asked, and
that data driven decisions tend to be better decisions.
Furthermore, McAfee and Brynjolfsson (2012) provide examples where companies
have used BDA to create value. An airline company in U.S.A did an internal survey
and realized that 10 percent of their flights did not arrive at the given ETA (estimated
time arrival). This resulted in resources being wasted on personnel that waited on the
ground when a flights arrival got delayed and at the same time if a plane arrived too
early the passengers and crew were stuck waiting for assistance. In the old way of
making ETAs, the pilot had to make an analysis of the plane’s position, weather, and
time for it to reach the airport. To solve the issue with delayed flights, the company
created a system that combined weather, radar signals of the flights position and flight
schedules. This system could estimate a more precise ETA, which resulted in a
reliable ETA with better flow of actions on the airport with fewer mishaps (2012).
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2 Literature review
In this chapter a literature study is conducted to provide insight into big data
analytics. To better understand BDA, we look back into the history of data and
analytics. Included is the Origin of BDA, from business intelligence & analytics, big
data and the development of the term BDA that we know today. Why use BDA and
finally, we bring up the potential competitive advantages of implementing BDA
solutions.
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Greasley and Hickie (2019) together with Frisk and Bannister (2017), mean that these
analytic techniques have been implemented in organisations to enable a more fact-
based decision making for better decisions. Whereas Bocij, Greasley and Hickie
(2019) note that 40 percent of decisions made in businesses today are based on
intuition and gutfeel. Big data analytics is according to Chen, Chiang and Storey
(2012) a related field to BI&A, primarily focusing on data on a bigger scale and
complexity, rather than the traditional analytics which often focus on smaller datasets.
Bocij, Greasley and Hickie (2019) categorize BDA in terms of analytic techniques
into three types. Descriptive analytics, where you try to show what has happened and
what is happening, Predictive analytics, showing what will be happening and
Prescriptive analytics answering what should be happening. Ghasemaghaei and Calic
(2019) mean that companies gather insights in three types; Descriptive insights means
to better understand their current business situation. Predictive insights,
understanding the future and what it brings according to statistical and forecasting
methods. Prescriptive insights meaning to find the best possible way to gain an
advantage.
Rowley (2017) discusses the DIKW-model which portrays a hierarchy between data,
information, knowledge and wisdom. The general understanding of the DIKW-model
is that data can create information, which in turn creates knowledge, which then, in
some cases, can turn into wisdom. Chen, Chiang and Storey (2012) state that new
insights, which you could argue comes close to knowledge and wisdom, can be
acquired through massive amounts of data generated from the web, mobile and
sensors in business and organisation areas. Dremel et al. (2018) state that a
companies’ ability to gain these insights through data analytics, is a competitive
factor, since these insights can lead to potential value for the company.
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Wamba et al. (2015) has done a systematic review and a longitudinal study and these
five dimensions of business value were among their classification framework. In their
study they find that the most published area was decision making. However, most of
these articles touch several points of the mentioned business values. The result of
Wamba et al. (2015) brings forth guidelines for managers in order to harvest the
possible gains from big data.
Actionable knowledge is a way for decision makers to make informative and better
decisions. It is derived from data to information to knowledge which transforms into
actionable knowledge when acted upon. According to Bumblauskus et al. (2017)
many different types of business decisions is impacted by BDA. It is however known
that organisations are behind in utilizing their existent data. The authors note that
actionable knowledge can translate into specific action and communication to others.
Decision makers are to be able to derive this from data or information. Bumblauskus
et al. (2017) report that in order to produce actionable knowledge several factors are
necessary. One crucial factor is having timely and valid information. This is to equal
value that of having the ability to make informed choices. These factors then need
attentive monitoring in order to make sure of the validity of input information as well
as the implementation of decisions. Without these, the decisions based on actionable
knowledge may lead to negative outcomes.
Data-driven decision-making is one of the main benefits researched according to
Wamba et al. (2015). Troisi, Maione, Grimaldi and Loia (2020) explains that data-
driven decision-making (DDDM) requires several conditions in order to be used.
There is a need for the organisation to have an innovative-oriented culture with an
active role of leadership which utilize data as a strategic resource and handles data
management carefully (2020). McAfee and Brynjolfsson (2012) describe DDDM in
a similar manner. They emphasize on moving away from decisions based on gut-
feeling and intuition for it to be replaced with it being based on data instead For BDA
to be utilized, they identifiy five challenges to overcome (2012). Hume and West
(2020) state that for-profit organisations are utilizing data-driven decision-making
and not-for-profit organisations can follow suit in order to benefit. The authors point
out seven challenges that is needed to overcome in order to utilize DDDM (2020).
Culture is described as one of the challenges needed to overcome in order to
implement and being data-driven within an organisation. It is mentioned that intuition
might be the main thing controlling decisions and noted that the data-driven decisions
need to be the main factor. The amount of skilled workforce using data are mentioned
as few and the need for recruiters to find the right workforce is high. The expectancy
of employees with sufficient abilities to handle techniques and technologies are low
in number as well. Further discussed is the need for human actions and decisions with
the insight made possible by data. Without management realizing opportunities and
acting upon it, data that is gathered and visualized is wasted (Hume & West 2020;
McAfee & Brynjolfsson 2012).
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customer and personnel interact, big data analytics can be used to better understand
customer needs. By using insights gained from speech analytics methods, a flight
company could personalize offers and be used to train service personnel. Using
analytics from social media companies can track what their public opinion is, their
competitors and the industry as a whole. By tracking customers in different ways, it
is possible to better capture market needs (2020b).
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3 Theoretical Framework (Theory)
In the following section we propose a Theoretical Framework that connects resource-
based view (RBV) and BDA capabilities to competitive performance. First, discussing
BDA capabilities and how they are connected to the RBV (tangible, human skills &
intangible). Lastly, we discuss operational capabilities, together with dynamic
capabilities and their differences in connection to competitive performance.
Figure 1. Theoretical framework for big data analytics capability (Adapted from
Mikalef et al. 2020b).
Mikalef et al. (2020b) provides this theoretical framework in their study, aiming to
connect BDA capabilities to competitive performance. The model in Figure 1 shows
distinct relationships between the different subjects with arrows.
Mikalef et al. (2020b) agrees with Chen, Chiang and Storey (2012) that big data and
the focus on related analytical technologies are here to stay. However, to realize and
use BDA, Mikalef et al. (2020b) state that firms can not only focus on technical
aspects. They also need to see through the human and intangible resources within the
organisation as well. Gupta and George (2016), together with Mikalef et al. (2020b),
argue that the RBV is a powerful tool for combining different organisational resources
and with them create a competitive advantage. Both research groups agree that
tangible, human and intangible resources, found in RBV, is needed in order to build
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a BDA capability. Furthermore, Mikalef et al. (2020b, pp. 4) defines BDA capabilities
as “...the ability of the firm to capture and analyse data toward the generation of
insights, by effectively deploying its data, technology, and talent through firm-wide
processes, roles and structures.”.
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RDBMS. To analyse unstructured datasets and distribute storage, Hadoop is a
technology that have emerged which can be used for such a case. It uses a NoSQL to
store and retrieve the unstructured data (2016).
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however, that big data technology is new, and that organisations with employees that
have big data skills have a slight edge over their competition for being ahead of the
curve. In conclusion it is believed that big data-specific technical skills and technical
IT skills may in conjunction make this resource ordinary across firms (2016).
Gupta and George (2016) note that the managerial skills are often taken for granted
for the reason that it is so deeply rooted in the organisational setting. The definition
of managerial skills is highly firm-specific and developed over time by individuals
working in the same organisation. Without sharp managerial skills, insight gained
from data may get overlooked. It is of importance for managers to understand how
and where to apply the insights gained from their technical teams. Managers should
have the ability to understand their customers, business units and alike current need
but also be able to foresee it to utilize the gained insight (2016).
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3.5 Notable differences (Dynamic & Operational)
The most important part is the relation between operational and dynamic capabilities
and its effect on competitive performance. Conboy et al. (2020) discuss operational
capabilities and how it represents the way of making and generating income for the
organisation, meanwhile dynamic capabilities are meant to support and lead
operational capabilities in an ever-changing environment. By organisations being
flexible and agile through dynamic capabilities, the operational capabilities can attain
to stay relevant and continue to create revenue for the company. Dynamic capabilities
are therefore necessary for an organisation to indirectly gain competitive performance
(2020).
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4 Method
This chapter consists of the scientific approach chosen in this thesis. Data collection
and the corresponding method will also be brought up, together with an adapted
version of the Theoretical Framework presented in the method chapter. Validity and
reliability are discussed, together with ethical aspects and lastly, a description of the
thematical analysis later used in the chapter for analysis.
4.2.1 Sampling
According to Jacobsen (2002) the sample of representatives is controlled and decided
by the purpose of the study. The representatives need to fit a certain criterion and have
relevance to the phenomena that is being researched. In this study, the focus was on
the representatives that work in the area of BDA and are well integrated with the
phenomena. They either studied or worked within the area of BDA, having roles such
as Data analysists or IT managers with insights in BDA or big data. Choosing
representatives possessing great amounts of information of the studied subject is what
Jacobsen (2002) describes as the “information” approach.
When searching for companies and participants for the study, brainstorming was first
used with the help of local knowledge of where to find suitable informants. With this
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insight, companies that were active in the IT sector could be tracked down by using
search engines to find the websites of these companies. A few companies that were
not known before were also discovered on random by using this method, through
search engine advertisement. The websites that were found contained information
about where the companies were active, in areas such as big data, analytics and
DDDM. Contact information to these companies and participants could also be found
on these websites. This was then used to make an initial contact between the
interviewees and the interviewee. The companies used in this thesis are Swedish
companies or organisations based in Sweden.
4.2.2 Interviews
To collect data in this study, semi-structured interviews were conducted on several
occasions. This was done with five representatives from five different organisations.
The interviews were approximately one hour long and an interview guide was used,
see appendix 2. According to Jacobsen (2002) the optimal time for an interview is
between forty-five minutes and one and a half hour. This is to make sure the interview
is not too short or too long, resulting in inadequate amounts of data which in turn
could affect the quality of the interview. The author states that an open interview is
best used when there is a small number of units that is studied, when the aim is to
study an individual and when the aim is to examine the individual's interpretation of
a phenomenon. The reason for choosing semi-structured interviews is because fully
open interviews tend to become too complex to analyse. Meanwhile, a fully closed
and structured interview may prevent the interviewee from sharing the individual
truth and experience that the study wants to discover (2002). During the interviews,
follow-up questions were naturally asked when a better understanding of an answer
was needed.
The method of interviewing the participants was digital face-to-face interviews
through different tools such as Zoom and Microsoft Teams. The interviews were
recorded through a recording software with the purpose of being able to transcribe
the interviews afterwards. This reduced the time and effort into taking to many notes
during the interviews. However, notes are still an important part of an interview
(Jacobsen 2002).
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Figure 2. Theoretical framework used in the study (adapted from Mikalef et al.
2020b)
The reason for this is that both marketing and technological capabilities fall under the
category of operational capabilities. The aim is to present operational capabilities, not
just marketing and technological, as a potential enabler for competitive performance.
By using this theoretical framework, it is possible to identify if organisations have the
necessary resources to enable BDA. It can also be used to connect the essential
resources within companies with the potential enhancements to increase organisations
competitive performance.
4.4 Analysis
By thematically analysing the findings of the conducted interviews it can be easier to
organize and structure the findings. This results in making the information more
viewable and easier to handle in order to analyse it. Creswell and Creswell (2018)
declare that qualitative analysis should be looked at as a process made up of five steps.
The first of these steps according to Creswell and Creswell (2018) is to organize the
data and prepare it for analysis. This was done by transcribing the interviews that have
taken place. The authors continue by describing the second step as the need to read
or look at all the data in order to get a holistic view of the gathered data. After reading
through the transcripts, categorizing the findings is the third step according to
Creswell and Creswell (2018). What this implies is a process of coding in order to
organize the data in such a way that it is plausible to label them with a fitting term.
Jacobsen (2002) also commends such a process as it makes it easier to understand
complicated, detailed, and rich data. The fourth step of Creswell and Creswell (2018)
entails to generate a description and themes. The description contains detailed
information about people, places or events in a setting. The themes display the
interviewees individual perspective. The fifth and last step involves representing the
findings from the qualitative data in the shape of subjects related to the interviews
result (2018). The thematic analysis can be found in the result and the analysis of the
thesis.
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When the thematic analysis was performed the findings was also put into context
using figure 2. By doing so it became possible to better understand and interpret the
gathered findings. It was possible to distinguish which resources it was necessary to
have in order to create a BDAC and if the informants were utilizing those resources.
It was then feasible to correlate and identify competitive enhancements and
improvements using dynamic and operational capabilities of figure 2. It was thereby
easier to identify and compare findings which is presented and discussed in the
analysis and discussion of the thesis.
4.6 Ethics
Ethical dilemmas can arise when conducting interviews. It is intrusive to a
interviewees privacy to conduct an interview according to Jacobsen (2002). In order
to prevent ethical dilemmas, the writers of this study strove to fulfil the three
prerequisites to hinder its possibility to arise. The three are informed consent, privacy
requirements and requirement for information given to be reproduced correctly.
Jacobsen (2002) notes that the participant need to be able to make the decision freely
for themselves in order to fulfil the requirement of informed consent. The interviewee
needs to be able to grasp the advantages and disadvantages of being part of the study.
Jacobsen (2002) emphasizes of the importance on interviewees free will regarding
participating in the study. The author also notes that in order for it to be of free will
they also need to be aware of the purpose of the study, how the data will be used and
pros and cons of the outcome. It is however of significance to make sure that the data
the participant is giving is not angled by have been given too much information. That
is the reason why Jacobsen (2002) argues to walk the middle way regarding giving
enough information. He also emphasizes that the interviewee also needs to understand
the information given to them. These four parts of informed consent is of utmost
importance to go through according to Jacobsen (2002). This is the reason why it was
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chosen to disclaim the purpose of the study and only reveal some of the studies
interview questions before doing the interview. They have been informed of the
purpose and area of the study. The interviews started by asking if they allowed to
record audio and picture. In order for them to have informed consent they also have
the possibility in any given moment of the interview to say that they do not want to
be part of the research anymore. All the informants were also required to sign a
consent form, see appendix 1.
An interviewee has a right to privacy and that right is just as equal as participating in
the interview of free will according to Jacobsen (2002). As interviewers it is of
importance to know how sensitive the data gathered is to an interviewee. As well as
how private the information that is gathered is. One more factor in privacy is what the
likelihood of being identified with the information the interviewee gives away. The
actions taken to negate this is having the interviews be confidential. This has been
done in not naming the participants as well as their organisation and/or leaving
information out that could potentially lead to them. The information about the
interviewees has been saved locally on a computer and is being kept until the thesis
has received a passing grade. After a passing grade, the information associated with
the informants will be deleted. The recorded interviews and the transcription of the
interviews have also been stored locally on a computer and will be done so until a
passing grade has been received. It will also be deleted after given such notice.
Jacobsen (2002) declares that interviewers have a responsibility to correctly
reproduce the interviewees given data completely and in the right context. It is
mentioned that it is not possible to completely reproduce the result in its complete
context, but studies should strive for it (2002). As the interviews were conducted in
Swedish the quotes in 5.0 and forward in the section of result was translated. It was
translated as close to the original Swedish quote as possible. Sometimes it was
required to interpret the core message of the quote in order to correctly translate it.
Implications of this can be read in section 7.6 method discussion.
It was translated as close to the core message of the quote as possible. Sometimes it
required interpretation of what the informant meant
That is why this thesis strives to do so and is also the reason why interviewees will
get notified when the thesis is available to them. As mentioned, if an informant does
not feel correctly portrayed or wants to be excluded
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5 Result
This chapter present the results given from the study, that was found in correlation to
the interviews that were conducted. The first sub chapter presents the informants in
alphabetical order. The second sub chapter gives a definition to the themes and sub-
codes using in the thematic analysis. This sub chapter is followed by a compilation of
answers and thoughts from the informants based on all the sub-codes presented in
the previous one.
5.1 Informants
Informant A is employed at a large company in the role as head of data science. This
informant has been with the company for fifteen years and has been in the field of IT
since joining the company with different roles. The companies’ journey with analytics
began two years ago. It was after informant A held a talk about what the possibilities
of analytics, machine learning, artificial intelligence (AI), amongst others, can bring
forth. The informant felt that the company have economic muscles that can aid the
transition but that the company lack the quality of data as well as the people-skill.
Informant A feels that their journey is in its early stages and the benefits from
becoming more data-driven can be seen but is yet to be fully achieved.
Informant B works at a group of companies where he is the head of digital innovation
and data. The informant has been working in the field of digitalisation for over twenty
years with experience in several fields, among those being e-commerce. The
corporate group and the informant's role are to help their groups companies transform
to be more data-driven and gain insights from their customers to produce value.
Informant B feels that the companies are transforming their businesses and have taken
a step in the right direction but that there is still a big challenge that needs continuous
attention.
Informant C is the head of shared data and IT in a very large company that have been
long established in their area of manufacturing. The informant is head of a couple of
hundred people in several different departments. Informant C has been working in the
field of IT for over twenty years, over ten of those in the same company where the
informants' position has been in management for the last several years and head of
their IT strategy. The company have the capability for skills, technical aspects but
feel that commitment with being data driven needs to be higher in order to peak.
Informant D is the director of big data and advanced analytics in a group of companies
and have over fifteen years of experience in analytics. The last ten years the informant
has been in an architect or management position and is currently responsible for their
advanced analytics journey. The informant has expressed that the company have
undergone different hypes, such as business intelligence, big data, AI and Machine
Learning. With this they have learned what can be achieved and how as well as
achieve some of it, but still feel like there is more to learn.
Informant E is head of Data Science on a fast-growing large company. The informant
has been in the field of AI for twenty years and is currently helping the organisation
to become more data driven as well as educating different teams and developers what
data analytics and AI are and what it can be used for.
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5.2 Themes and sub-codes
The following sections will be structured according to table 1 found below.
Table 1. Themes and sub-codes
Theme Sub-code
− Data
Tangible resource − Technology
− Basic Resources
− Technical skills
Human skills
− Managerial skills
The themes found and the sub-codes were the first part of the analysis. In the figure
the themes and sub-codes are presented in an orderly fashion.
5.3.1 Data
Every informant feel that they have more than enough data in order to work with
analytics in their respective companies or group of companies. This is common for
all of the informants. An informant exemplifies this by talking about structured and
unstructured data:
(Informant B)
The amount of structured and unstructured data differs between the informants.
Internal and external data is something that the informants also talked about, as well
as the integration between them. They all integrate them to some extent. The majority
of the data by the informants is internal but external data is also gathered. An informant
spoke of it like so:
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“The majority is internal data that is created, generated somewhere on
[company] or our business processes, then we also collect external data
to some extent, such as, these open data sources, such as weather,
forecasts and so on”
(Informant D)
The quality of the data is something all informants feel strongly about. They feel that
depending on the quality of the data, the decisions made on it will reflect the quality.
An informant pointed out the importance when discussing how a department started
being more data driven:
“It’s just that the quality of the data is too bad, it flips it to become wrong
and then it becomes a question of maturity about...well.”
(Informant C)
One thing most of the informants have in common is the feeling regarding GDPR. It
is regarded as a necessary force, where a minority of the informants feel that there is
unused data to be found and explored. An informant spoke of it as such:
(Informant E)
Some of the informants felt the need to express that big data is no longer a talking
point and that they treat big data as just data.
“We have made the journey with big data, and in present I would say we
only talk about data, we make much less difference between that which
was called big data before and that which is called data, now we really
just work with data”
(Informant D)
5.3.2 Technology
All of the informants have the technology to store and utilize data, using either or
both server halls and the cloud to do so. Technology such as Hadoop clusters are also
mentioned. Four out of five explicitly expresses that data warehouse and data lakes is
being used to store and/or analyse data. One of the informants spoke of it like so:
“Then we have like, we actually have like three main places we store
data, for analytical needs and, but also kinda machine learning and stuff.
Partly, we have a number of data warehouses around the company. […].
We work with data lake, on a fairly large scale, and the last thing we’re
doing is that we are also establishing a cloud eco system”
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(Informant D)
Several of the informants speaks of the tools used to handle data as ever-changing.
New tools are developed and updated which requires companies to adapt out of a need
to use it according to an informant:
“But, but one can only ascertain that the need to question existing
technological solutions, it has never been higher in this, this sphere you
know. New tools are developed, constantly. And you need to, you are in
need to work with the latest really.”
(Informant B)
“[…] it kinda becomes, like really, starting to experiment, then you often
search for funding or financing to validate a hypothesis. And it is often
smaller experiment. Maybe 6-8 weeks of experiments to validate that,
the hypothesis, and that yes, there is a value and then you have found the
value.”
(Informant B)
When asked about what resources are needed for a project to succeed most informants
answered in a similar fashion. They talk about needing people with business domain
knowledge, technical skills, data and an infrastructure to support it.
“But then you also need to have a domain expert that actually
understands what we are trying to solve.”
(Informant E)
“[...] then there are the business people to understand the process. To
understand the data, you often need IT personnel to do that, consider
that.”
(Informant C)
When asked about funding for projects one informant expressed that in the beginning
there were no issues with resources for projects. However, now a few years later when
the organisation have peaked in interest for such project's, resources have started to
become scarce. Majority of the informants, however, have no or very few issues with
funding though. One informant expressed themselves regarding it:
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“Moreover, then there exists, given that it is going well for the company.
Well, then there is quite a lot of financial muscles and you get a lot of
chances to test and try with great freedom.”
(Informant A)
“[…] there are a lot of these roles, it’s a narrow labor market. […] I
would say somewhat, we have a lot of the skills, but it’s not...it is a scarce
commodity.”
(Informant D)
A majority admit that there is a journey for the companies to be had when it comes to
adapting their business towards data analytics, especially when acquiring and
maintaining the technical skills. Two of the five informants say that they have the
technical skills, but that they lack the experience. One informant put it this way:
(Informant A)
Three out of five informants also mention that they have the technical skills to handle
BDA. The three informants all use or have the ability to implement cross-functional
teams with both business domain knowledge and technical knowledge. Here one
informant expresses themselves:
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you need people that like, has the business knowledge and is able to add
business logic...”
(Informant B)
Another included informant describes their view upon a cross-functional team and
emphasizes shortly:
(Informant C)
“Leadership, I would definitely say that we have that, like on the most
difficult role, the CEO position”
(Informant A)
Another informant filled in with a little bit of worry:
“We definitely have the right people. However, you can always ask
yourselves the question whether everyone has the competence when it
comes to being data-driven.”
(Informant D)
According to every informant there is a general awareness and acceptance, in the
higher up positions, that data can bring value to a business in different ways.
However, between the informants there are mixed feelings on how well this
awareness and acceptance is being reflected into decisions being made out of data.
When asked if managers use insights from data in their decision making one
informant put it this way:
(Informant A)
Disagreeing with the previous informant, one informant expresses after being asked
if managers and leaders use insights from BDA that:
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actively the last 3,5 years and we have like, validated the hypothesis that,
yes there is a business value.”
(Informant B)
Working in the manufacturing industry, one informant mentions that when BDA
initiatives/concepts are proven to work, they often get stuck in the concept state and
not implemented into the business. In order to continue to develop processes and
create more value for the company the informant argues:
“[…] the leadership that is needed is that someone that dares to say,
“No this is wrong. There is way too much manual work here. And within
a year it should look differently, then we will have a digital process”
[…] That type of leadership is what’s missing.”
(Informant C)
And to finalize the statement on how to overcome this the informant said:
(Informant C)
“In many places there is a very, very big interest from the top of the
organisation that we are to work in a data-driven fashion and that we,
kind of, are not to shoot from the hip but actually use our data to what it
is supposed to be used for”
(Informant E)
One informant spoke of how they use data, but the data has been worked on and
interpreted to create insights. This is then used in combination with experience to base
decisions. It was spoken of like so:
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(Informant D)
Most of the informants speak of some form of commitment issues when wanting to
become data driven. They speak of people in the business not wanting to embrace
being data driven due to the feeling of data not being as good as someone who has
worked there for a very long time and/or have domain expertise. An informant speak
of it:
“It is enough if a person we have trusted for fifteen years say “No, this
seems like a bad idea”. Well, that is an obstacle for us”
(Informant C)
A few of the informants share that there is also a problem with departments being
territorial and not sharing insights and data. An informant takes it up when discussing
whether or not their decisions are based on data:
“So, they’re not really open to embrace new ways. Then it’s also a little,
a little about being territorial, if, if I wanted to learn more about this
thing, I would need to make a request to this department and I don’t like
them very much because we compete for the same thing.”
(Informant E)
There is an overall feeling of being on the path to being data-driven and each
organisation have travelled different lengths of that path. Some of them are in the
beginning of their journey while some have been data-driven for years. What is
common in all of them is that they express a need to continue working towards it. One
informant expressed a need for a culture-shift and it being a question about people in
order for it to work:
“That means that everyone needs to become more data-driven and that
is a culture issue which needs a shift. But I believe, that it’s not going to
be about, like, money, funding, investment on it, that’s going to resolve
itself. I don’t think it’s going to be about technology or infrastructure,
that’s going to be available, or it is available. In the end it’s going to be
about people, it’s a people-question, to one hundred percent. Whether
one succeeds or not.”
(Informant B)
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“[…] you have to be conscious that it’s very favourable for 90% of all
employee’s but there are a few that might not want or able to adapt like,
you need to take care of that too.”
(Informant B)
Another informant brought up their understanding of how competence and
performance is connected:
“Ah yes, there it is, if you look at the performance, the performance part
of the organisation, here we prioritize very highly that we keep up with
technology, the competences and the tools that we have.”
(Informant D)
Many informants touch the subject of having an educational process within the firm,
with the goal of continuously improving their employee's competence in regard to
BDA. One informant references a course called Elements of AI, originating from a
Finnish university that takes a few days to go through and gives a basic view into
what AI is. When asked if the informant would like to see an implementation of a
course like this the response was:
“Yes, make an adapted variant, like this one with AI, for non-
technicians.”
(Informant E)
When talking about education one informant brought up an example of learning
within the organisation. On this occasion they gathered all the executives and board
members and held an informative and educational seminar about AI, different
technologies used in a specific project and the outcome. This was meant to showcase
the importance of the technology and what it can bring to the business. When talking
about it, the informant declared the importance of education:
“It is a pretty important part, with this, yeah well, yeah with a little
missionary work actually, to learn.”
(Informant A)
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in their business was using it on their production process. The reason for this is
because of the ease of calculating profit and efficiency with improving the process:
(Informant A)
The informant also gave an example where they presented a case company-wide to
provide more insight in what they are doing:
“[…] it was about, earlier you had a pretty clumsy guiding of a process.
And thanks to us working with machine learning we could remove the
clumsy steering and replace it with a much, much faster and easier
guiding process, so to speak.”
(Informant A)
When asked about where they have seen the value of big data analytics one informant
speaks of working with improving their pricing for their products. As well as how
they work with recommendation engines, increasing automation in Airhouse or in
parts of their supply chain, also pricing for their products:
(Informant B)
A different informant speaks of how they are trying to improve their marketing by
pinpointing individual people who have use of a product they are doing a campaign
on. This is common amongst the informants. When asked about what they have
changed, one informant spoke of it like this:
“We have also changed our way which was mentioned earlier to launch
campaigns for different products, instead of shooting wide you try to pin
point down and find the right offer to the right customer and the right
time […].”
(Informant E)
One thing that is mutual among the informant is the feeling of being in the early stage
of analytics. Changes have been made but there is still more to bring out. When asked
if they have had opportunities and taken advantage of the opportunities brought up by
analytics, with focus on big data, one informant answered:
“Yes, god yes, but then, there is also, there is also new things you could
need to do and that we haven’t reached all the way with.”
(Informant C)
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Another informant said this when asked a similar question:
(Informant D)
“So, there we have a very high amount of data, we've worked a long time
with this, made services based on that.”
(Informant C)
Furthermore, the same informant enhances this by stating:
“Yeah, well so far, there are a bunch of services related to our connected
[products] that wasn't there before, so we sell things now, that we didn't
sell before.”
(Informant C)
However, for some informants, value has not been identified in products or services
explicitly. Informant A believes that they are a little too early on their BDA journey
before they can realize any products for the customers:
“No, I wouldn't say that we have, the things we have done has not
resulted in new products or services [...].”
(Informant A)
But there are work in progress for the firm hoping to deliver value to their customers:
“[...] I mean, I have worked in projects, in one project for two years
now, that I someday hope will become a product or service for our
members.”
(Informant A)
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All informants feel that big data and analytics can help their business in some way.
When talking to one informant, they felt like making a statement about data usage
and how important it was for them:
“So, data usage is very very important for us. And it enables us to
improve our products, understand our products, improve them, offer the
right things to the right customers at the right time.”
(Informant E)
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6 Analysis
In this chapter an analysis of the result is presented. Here, the result is interpretated
and explained further and put into correlation to the theoretical framework and
literature that has been used earlier in the thesis.
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the technical skills can be hard to find (2016). The interviews have generated different
views upon this. All informants say that there is a scarce market when trying to find
educated and experienced people with the ability to extract the intelligence from big
data. There is a difference amongst the informants however, where some already have
the sufficient number of educated and skilled employees while some do not.
Looking on the managerial competence inside of the firms, many informants feel that
they have the adequate people on the executive level, but less so on the middle level.
The top management have a general and/or advanced understanding of what BDA
can contribute with, meanwhile the middle management is lacking the same level of
understanding. Gupta and George (2016) mean that without good managerial skills,
there is a tendency to overlook possible value gained from insights based on data.
With the informants feeling that they have the right leaders, some of them were
sceptical whether or not they make the most of the insights gathered from data.
Meanwhile, some feel like they have found the right path having experienced leaders
who have seen the value of BDA and are actively working with turning insights to
value.
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according to Côrte-Real, Oliveira and Ruivo (2017) which correlates with the thesis
findings. Mikalef et al. (2020b) explains that one operational capability is about
manufacturing products and services. What the majority of informants have done is
improving their current processes, mainly because it makes it easier to calculate
profits and effect. By doing so they also open the way for future investments in BDA
initiatives in the organisations, by showing that it has value. The informants also state
that new marketing strategies are being produced. It is something that Mikalef et al.
(2020b) note as being an operational capability, addressing customer needs. The
authors also mention that transforming these as such is noted as a dynamic capability
(2020b).
Some informants have started or are already creating new products and services based
on the analytics from data that has been gathered. Not many of the informants have
come as far as to creating such possibilities for their organisation. The reason being
that they are in the beginning of utilizing big data analytics and are in need to prove
that it works. These findings from the informants correlates with current literature, as
BDA projects may not yield immediate results and organisations should be aware of
this according to Mikalef et al. (2020b).
The informants mention finding possible areas where to either optimize an existent
internal process or create an improved process. This mean that the informants
organisations are finding areas where they can improve by utilizing the data they
have. It correlates with existing literature where dynamic capability is described as
sensing, seizing, and transforming as according to Conboy et al. 2020.
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7 Discussion
This chapter will discuss the empirical result that was gathered through the
qualitative study together with existent research work and analysis. This chapter will
also contain a method discussion which brings up different aspects from conducting
this thesis.
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asked in a more closed question on how they value money and time. Here they also
mention that both money and time is a necessary and a fundamental part in BDA
investments. However, many of the informants does not put that much pressure into
this aspect. A majority of the informants have had successful initiatives and proven
that there is value in working with BDA. This has resulted in firms adding financial
support to buy data or hire competence for example, to support BDA within the
companies.
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employees with the wanted technical skills. One of the informants mention how
potential candidates lack practical experience and some others have a hard time even
finding suitable employees. The results point to a need in increase of education and
training regarding technical skills surrounding BDA. One could also question if it is
about education not being available or if there are too few interested parties in the
education.
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constant development of different techniques and technologies and what they mean
for them, which is of great importance because it affects how they work. If the
organisation learns of new techniques it might lead to improvements otherwise
unknown, although it could also be a technique that could be redundant. Which in
turn means they need to be cautious how they navigate the technological landscape.
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what could be a potential value. However, when given the chance the informant feel
that they perform and provide value through their initiatives. Bumblauskus et al.
(2017) note that actionable knowledge is a way for decision makers to make
informative and better decisions. The authors also state that several factors need
attentive monitoring such as the validity of input information and implementation of
decisions is needed. Otherwise, the decisions based on the actionable knowledge may
lead to negative outcomes (2017). This could be one of the reasons why the
management are cautious when it comes to deploying initiatives.
McKinsey Global Institute (2011) states that five different types of business values
exist and this thesis findings correlate with most of them in some way. Using
experiments to discover needs and expose possible improvements is something that
most of the informants have done or is doing. The informants also improve their
marketing with BDA and have or trying to narrow down their users to better provide
marketing services which correlates with the thesis findings.
The findings indicate that there are benefits to using BDA and some of the informants
feel that it is a survival factor to utilize BDA. One of the informants even claim how
companies these days are needed to be sort of a tech-company because without using
analytics you fall behind in the competition. It can be seen that the value, and the
context of the value, differs between informants due to how far they have come in
transforming their organisation to use BDA.
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interpret what the informant were saying in order to correctly translate the quote. In
some cases, it was difficult to do so without interfering with the core message.
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8 Conclusion
As mentioned in the chapter for purpose and research questions, the purpose of this
study was to examine how companies in Sweden enable big data analytics utilizing
different resources in order to gain competitive advantage. To answer this, two
research question were established:
• RQ1: What kind of resources are utilized to enable big data analytics and how
are they being used?
What kind of resources companies utilize was found in various studies and used in
this work. To answer the first RQ it was found that data, technical skills, and data
driven culture, amongst other resources, were being utilized. The organisations in this
study were using them in order to create BDAC and enable BDA within their
business.
• RQ2: How does big data analytics lead to performance enhancement and
competitive advantage, and in what context?
By utilizing the different resources mentioned above, creating BDAC, organisations
have used insights gained from BDA to enhance their organisation. Organisations in
the study improved their business processes by doing so as well as creating new
products and services resulting in competitive advantage.
Different resources play a different part in the organisations. It can be seen that
depending how long the organisations have worked with BDA, different resources
are valued more than others. It is clear that all the different resources are needed to
work in conjunction to benefit from BDA.
The findings show that there are benefits associated to BDA according to the
informants. BDA is a vital part of organisations today in order to stay competitive.
The Swedish companies in this study are starting to or have already realized the value
that comes from utilizing BDA. What the companies have in common, is their
expression that the end result of the BDA movement is yet to be seen.
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by doing so. It would also be of importance to realise why and what that could mean
in the organisations continued endeavours with BDA.
With the study being of a qualitative approach, generalisation is a challenge. Within
this study there were five informants present, which is not a plausible amount to
achieve this. Therefore, conducting a mixed method or quantitative approach could
be beneficial in order to establish a higher level of generalisation.
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Appendices
Syftet med studien är att undersöka hur företag möjliggör big data analytics för
att få konkurrensfördelar.
Genom att skriva under den här samtyckesblanketten godkänner du att dina
personuppgifter behandlas inom ramen för uppsatsen/studien som beskrivs ovan.
Du kan när som helst dra tillbaka ditt samtycke genom att kontakta någon av
studiens kontaktpersoner enligt uppgifter i informationsbrevet. Dina
personuppgifter kommer därefter inte längre att bevaras eller behandlas vidare
utan annan laglig grund.
Du eller ditt företag kommer aldrig att benämnas vid namn i själva rapporten, utan
åsyftas nämnas i termer som ej kan kopplas till dig/er. I studien utlovas
konfidentialitet.
Du har alltid möjlighet att få information om vad som registrerats om dig eller ha
synpunkter på behandlingen eller de uppgifter som samlats in genom att kontakta
någon av kontaktpersonerna nedan eller lärosätets dataskyddsombud på
dataskyddsombud@lnu.se. Klagomål som inte kan lösas med Linnéuniversitetet
kan lämnas till Datainspektionen.
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Underskrift Ort och datum
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Namnförtydligande
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Appendix 2 – Interview guide
10 Inledning
• Berätta lite kort om dig själv och vilken bakgrund du har.
• Vad har du för roll i företaget?
• Hur länge har du jobbat i det här området?
11 Tangible resources
• Vad är det för data som ni har och arbetar med idag?
• Är den data som ni har idag extern respektive intern?
• Integreras de två på något sätt?
• Varifrån kommer denna data?
• Finns det någon data som ni känner att ni inte utnyttjar idag?
• Hur ser ni på rollen som data har för er verksamhet?
• Hur hanterar ni er data rent tekniskt sätt?
• Hur lagrar ni den?
• Skulle du säga att ni har en förutsatt procedur gällande initiativ för investering
i projekt för BDA?
• Hur ser du på de resurser som krävs för att kunna lyckas och vilka skulle du
säga att det är?
• Upplever du att ni har de tekniska förmågor och ledarskap som behövs i
samband med big data analytics?
12 Human skills
• Skulle ni säga att ni har tillgång till den tekniska kompetensen som behövs
för att hantera big data?
• Hur stor betydelse är det för er att anställda har rätt teknisk kompetens för
hantering av data?
o Hur säkerställer ni att era anställda har rätt kompetens?
• Upplever du att chefer eller beslutstagare inom organisationen, gör val utifrån
de insikter som kommer fram genom BDA i företaget?
• Hur väl tycker du att chefer använder den insikt som kommer från datan?
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13 Intangible resources
• Vad upplever du att ni baserar era beslut på inom företaget?
• Hur var engagemanget inom företag när/om ni investerat i data analysering?
• Används insikter av data på flera nivåer inom företaget på något sätt
• Hur upplever du att organisationen prioriterar kring en fortsatt utveckling och
utbildning kring ny teknologi och tekniker inom företaget?
• Hur skulle du säga att ni hanterar den konstanta teknikutvecklingen?
15 Avslutning
• Tycker du vi har missat något viktigt i relation till big data analytics?
• Tack!
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Department of Informatics