Big data analytics in innovation processes

Article Analysis Sheet

Article Topic/Research Topic:

Big data analytics in innovation processes Name: Big data analytics in innovation processes: which forms of dynamic capabilities should be developed and how to embrace digitization?

Submission Date: 12 of January 2024

Introduction:

·???????? The research explores the role of big data analytics in supporting firms’ innovation processes.

·???????? It examines this topic from a dynamic capabilities’ perspective.

·???????? It emphasizes the importance of counterintuitive strategies for developing innovative products, services, or solutions.

·???????? The research highlights the need for firms to develop dynamic capabilities to embrace digital innovation.

·???????? It discusses the relationship between dynamic capabilities, big data analytics, and digital innovation processes.

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Subject/Title:

·???????? The role of big data analytics in supporting firms’ innovation processes and the development of dynamic capabilities.

Analysis:

·???????? The research conducts an empirical analysis based on interviews with key decision-makers at firms in digitally related sectors.

·???????? The analysis provides evidence for the arguments presented in the document.

·???????? Big Data in Innovation: The research underscores the crucial role of big data analytics in enhancing firms' innovation processes.

·???????? Digital-Physical Intersection: It focuses on how firms can use big data to gain insights at the intersection of digital and physical worlds, aiding in developing innovative products, services, or solutions.

·???????? Counterintuitive Strategies: The importance of adopting counterintuitive strategies and developing dynamic capabilities for digital innovation is emphasized.

·???????? Empirical Evidence: The analysis includes evidence from interviews with decision-makers in digitally related sectors.

·???????? Dynamic Capabilities and Big Data: There's an exploration of the relationship between dynamic capabilities, big data analytics, and digital innovation processes.

·???????? Data Analysis for Creativity: Big data analytics is highlighted as a key tool in supporting creativity and the innovation process.

·???????? Improving Customer Satisfaction: The use of big data analytics can enhance customer satisfaction and aid in developing innovative products, processes, and business models.

·???????? Signal Identification: Emphasizes the importance of identifying crucial signals in data and distinguishing valuable information from noise.

·???????? Supporting Different Types of Innovation: Big data analytics supports both technology-push and demand-pull innovation, generating disruptive ideas and influencing market demand.

·???????? Risk of Overreliance: The research notes the risks of overreliance on big data, such as stifling creativity and hindering the development of radical innovations.

·???????? Changing Customer and Market Needs: Innovative firms not only understand and satisfy customer needs but also aim to generate and change these needs.

·???????? Strategic Importance in Decision-Making: The growing importance of big data analytics in strategic and innovation management decision-making is highlighted.

·???????? Dynamic Capabilities Development: Firms are encouraged to develop dynamic capabilities to effectively leverage big data analytics for innovation.

Objectives of the study:

·???????? To examine the role of big data analytics in supporting firms’ innovation processes.

·???????? To understand how firms leverage big data to gain insights at the intersections between the digital and physical worlds.

·???????? To explore the forms of dynamic capabilities that firms should develop to embrace digital innovation.

·???????? To investigate the relationship between dynamic capabilities, big data analytics, and digital innovation processes.

·???????? To provide insights for practitioners on managing innovation processes in the physical world and considering investments in big data analytics.

Context of the study:

·???????? The study focuses on the use of big data analytics in digitally related industries.

·???????? It explores how firms utilize big data to gain competitive advantages in an increasingly digital world.

·???????? The study considers the influence of the web on the habits, needs, and behaviors of people and markets.

Conceptual framework:

·???????? The research adopts a dynamic capabilities perspective to examine the role of big data analytics in supporting firms’ innovation processes.

·???????? It considers the intersections between the digital and physical worlds and how firms can leverage big data to gain richer and deeper insights.

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Research methodology:

·???????? The research uses a snowballing technique to select respondents for the interviews.

·???????? A comprehensive group of 25 experts in big data analytics from firms in leading positions in digital-related industries were interviewed.

·???????? The interviews were conducted using open-ended questions and lasted 30-60 minutes.

·???????? Two rounds of interviews were conducted to seek external validation and refinement of the findings.

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Outcomes:

·???????? The findings offer insights for practitioners on managing innovation processes in the physical world while considering investments in big data analytics.

·???????? The research contributes to the understanding of how firms can strategically utilize big data analytics to drive innovation in the physical world.

·???????? It provides evidence for the importance of developing dynamic capabilities to embrace digital innovation.

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Recommendations:

·???????? The research emphasizes the need for firms to invest in cutting-edge technologies for processing big data and recognizing rich and deep data.

·???????? It suggests that firms should adapt their products or services to meet the real needs of users and intercept them in specific and short timeframes.

·???????? Firms are recommended to develop collaborative business models to identify new opportunities among the value chains of the firm and external stakeholders.

·???????? The research suggests using big data analytics to interpret the market dynamics, create new value, and personalize products and communications.

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References:

Capurro, R., Fiorentino, R., Garzella, S., & Giudici, A. (2021). Big data analytics in innovation processes: which forms of dynamic capabilities should be developed and how to embrace digitization??European Journal of Innovation Management,?25(6), 273-294.