‘Data over intuition’ – How big data analytics revolutionises the strategic decision-making processes in enterprises

Abstract: Background: Digital technologies are increasingly transforming traditional businesses, and their pervasive impact is leading to a radical restructuring of entire industries. While the significance of generating competitive advantages for businesses utilizing big data analytics is recognized, there is still a lack of consensus of big data analytics influencing strategic decision-making in organisations. As big data and big data analytics become increasingly common, understanding the factors influencing decision-making quality becomes of paramount importance for businesses. Purpose: This thesis investigates how big data and big data analytics affect the operational strategic decision-making processes in enterprises through the theoretical lens of the strategy-as-practice framework. Method: The study follows an abductive research approach by testing a theory (i.e., strategy-aspractice) through the use of a qualitative research design. A single case study of IKEA was conducted to generate the primary data for this thesis. Sampling is carried out internally at IKEA by first identifying the heads of the different departments within the data analysis and from there applying the snowball sampling technique, to increase the number of interviewees and to ensure the collection of enough data for coding. Findings: The findings show that big data analytics has a decisive influence on practitioners. At IKEA, data analysts have become an integral part of the operational strategic decision-making processes and discussions are driven by data and rigor rather than by gut and intuition. In terms of practices, it became apparent that big data analytics has led to a more performance-oriented use of strategic tools and enabling IKEA to make strategic decisions in real-time, which not only increases agility but also mitigates the risk of wrong decisions.