Big data analytics performance measurement practices – An explorative multiple case study among Finnish companies
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Journal Title
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Volume Title
School of Business |
Master's thesis
Authors
Date
2022
Department
Major/Subject
Mcode
Degree programme
Accounting
Language
en
Pages
52 + 14
Series
Abstract
One of the most important sources of competitive advantage in today’s business environment is information. For that reason, the ability to utilize data and turn it into understandable insights is crucial. Big data analytics is a function that makes it possible to handle larger datasets than traditional software could and allow new possibilities for analytics purposes. There are several studies supporting the fact that successful big data analytics improves firm performance, but the actual financial contribution and how big data analytics performance can be assessed is often unclear. These topics are considered from the perspectives of performance theories and cost accounting. Cost accounting is included since it is an important part of doing a proper financial performance assessment. As this is an accounting thesis the focus is mainly on financial impact leaving the technical side of big data analytics for less attention. The topic is rather new and there are not many papers with a similar approach to this thesis. The best method for a topic with limited prior research is arguably an explorative case study which is conducted with companies known to have extensive big data analytics applications in use. The study focuses on creating a general picture of theoretical frameworks related to the topic and then provides insights from practice by interviewing experts from chosen case companies. The study is not intended to find proof for existing theories but rather to suggest a new approach and provide possibilities for further research. Interview results imply that there is a lot of variation in terms of assessing big data analytics performance. Case companies use KPIs that are closest to the actual value creation of the end product hence companies having different business cases need different KPIs. The performance of a product like a chatbot that is used by customers can be measured with various customer satisfaction metrics like net promoter score or simply amount of positive feedback. The most common performance indicators are linked to efficiency and that is also simple to convert into actual financial impact. Work time saved by using big data analytics applications is one example of that. This thesis contributes to performance management literature from a big data analytics perspective. Big data is not included to make the thesis more trendy but due to the massive potential that it brings by utilizing data to improve business performance and support decision making. Understanding that phenomenon shouldn’t be just data analysts’ and data scientists’ concern but also a subject of interest for accounting professionals. By including a cost accounting perspective, the phenomenon is also assessed with a critical approach and not only considering benefits.Description
Thesis advisor
Sihvonen, JukkaKeywords
big data analytics, performance measurement, KPI, performance management