Leveraging big data analytics for competitive advantage in South African banking

Abstract

Big data is considered a form of capital and source of competitive advantage. This proliferation of data has the promise of transforming business process, altering corporate ecosystems and unlocking business value through the strategic and operational implications of better informed decision making and enhanced organisational responsiveness. Furthermore, the big data era has new implications for understanding consumer behaviour and formulating marketing strategy. Despite the promise of the big data revolution being a source of competitive advantage and superior organisational performance, organisations lack the ability to create difficult to match capabilities to effectively leverage big data for competitive advantage. The research explores leveraging big data analytics for competitive advantage in South African banking. Data was collected through 11 semi-structured, in depth interviews with experts from the South African banking industry. Thematic analysis of the qualitative interview data provided insights into leveraging big data analytics for competitive advantage in South African banking, particularly, the industries utilisation of big data analytics, the adequacy of the methodologies employed for the processing of big data and the resource and capability requirements. The research establishes that in strategizing around leveraging big data capabilities, it is imperative that South African banking is cognisant of the key role that top management emphasis, inter-departmental dynamics and organisational design plays in the development and leveraging of these capabilities. Furthermore, the research accentuates the importance of the embodiment of a data-oriented culture to facilitate the organisation to sense, seize and execute on opportunities.