The Impact of Business Analytics on the Quality of Data-Driven Decision-Making and Firm Performance

Yanjing Wang ()
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Yanjing Wang: Clark University

A chapter in Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025), 2025, pp 392-399 from Springer

Abstract: Abstract In today’s enterprise environment where unprecedent data volumes and volatile markets are becoming more the norm than the exception, making informed, on-time decision is no longer an option, but a requirement for a long-term competitive advantage. Data-driven decision making (DDDM) is an imperative paradigm, but many corporations find it hard to change their massive data repositories into usable insights and decision outcomes. This paper looks at the main role BA (Business Analytics) plays as a strategic ability that links raw data and good decisions. We assert that the effect of BA does not a direct influence on firm performance but rather it depends on an enhancement in the overall quality of decision making on several dimensions:that is accurate, timely, relevant and actionable. The paper combines existing literature to create a holistic conceptual model that explains how BA affects decision quality and, as a result, organizational outcomes. The building blocks of BA range from descriptive to predictive to prescriptive analytics; this progression explains how those different tools and techniques make it possible for managers to stop depending on their gut feeling, which is often very misleading. Additionally, the paper touches on some common issues in BA implementation, such as defining data ownership, recruiting qualified personnel, and shifting organizational mindsets. The paper also puts forward a multi-stage maturity model to assess an organization’s analytical capability. By showing the direct link between adopting BA, better decisions, and greater success for the company, this piece gives good ideas for experts and scholars, pointing out the need for a complete, strategic view to grow a culture of data. It claims that investing in BA isn’t just about making a tech change, it’s crucial to an organization’s transformation – needed to move through complex eco systems in the modern market and get a strong edge.

Keywords: Business Analytics; Data-Driven Decision-Making; Firm Performance; Big Data; Decision Quality; Strategic Management (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-916-2_43

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