Exploring the Dynamics of Developing the Analytics Capability

As technology evolves and the amount of available data increases across industries, companies race to develop their analytics capability. This research seeks to understand what constitutes the analytics capability, and how it should be developed in the context of a multinational corporation. For this end, we conduct an in-depth single-case study in a multinational manufacturing company, where we interview 30 informants working with, or dependent on analytics for decision making. Based on the data, we form our conception of the analytics capability by using the Gioia method. We then examine the dynamic nature of the analytics capability through deriving projections based on the data, which allows exploration of on how the capability should be developed and how it will eventually evolve.
We identify 13 dimensions comprising the analytics capability which we group into four categories: Culture, Governance, Methods, and Technology. The analytics capability is deeply rooted in the organizational fabric displaying complex interdependencies within and between categories. Further, the projections highlight the contingent nature of analytics as different analytic ends require different means. Based on the study we conclude that: 1) Evaluating the maturity of the analytics capability on a firm level is not meaningful, but should rather be done on a means-ends basis; 2) The Analytics capability creates a foundation of structural ambidexterity on which dynamic capabilities can be built; 3) Combining the Gioia method with projections in exploratory research is argued to result in more robust conceptualizations of novel phenomena.