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Hardeep Chahal · Jeevan Jyoti
Jochen Wirtz Editors

Understanding
the Role of
Business
Analytics
Some Applications
Understanding the Role of Business Analytics
Hardeep Chahal Jeevan Jyoti Jochen Wirtz
• •

Editors

Understanding the Role

of Business Analytics
Some Applications

123
Editors
Hardeep Chahal Jochen Wirtz
Department of Commerce Department of Marketing
University of Jammu National University of Singapore
Jammu, India Singapore, Singapore

Jeevan Jyoti
Department of Commerce
University of Jammu
Jammu, India

ISBN 978-981-13-1333-2 ISBN 978-981-13-1334-9 (eBook)

https://doi.org/10.1007/978-981-13-1334-9

Library of Congress Control Number: 2018949885

© Springer Nature Singapore Pte Ltd. 2019

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part
of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission
or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar
methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are exempt from
the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this
book are believed to be true and accurate at the date of publication. Neither the publisher nor the
authors or the editors give a warranty, express or implied, with respect to the material contained herein or
for any errors or omissions that may have been made. The publisher remains neutral with regard to
jurisdictional claims in published maps and institutional affiliations.

This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd.
The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721,
Singapore
Foreword

Changes in business environment have created many opportunities as well as

uncertainties, which make the role of business research more important for the
decision-makers. Since managers have to make quick but accurate decisions in
order to sustain the competition, business and service firms require knowledge of
advanced research techniques besides the routine projections and trend analyses.
Recent research studies have highlighted the growing need for the application of
advanced techniques in the business decision-making process as business analytical
techniques provide managers with more confidence in dealing with uncertainty
despite a flood of available data. In this context, the book edited by Dr. Chahal, Dr.
Jyoti, and Dr. Wirtz is an excellent initiative to present the work of eminent
researchers from various parts of the world including USA, UK, France, Singapore,
Iran, UAE, and India. I have gone through the manuscripts of the contributors. The
authors have analysed the data with the help of various analytical techniques like
exploratory and confirmatory factor analysis, regression modelling, forecasting,
structural equation modelling for better information of managers to take better
quality decisions. The book will equip the stakeholders including managers,
practitioners, entrepreneurs, researchers, and individuals working in the extant,
complex, and uncertain environment with empowered knowledge and skills to use
and interpret statistical techniques for attaining sustainable, competitive advantage.
I wish success and best of luck to all who have contributed in making this
initiative successful.

Greater Noida, India Prof. R. D. Sharma

Vice-Chancellor
Noida International University

Jammu, India Former Vice-Chancellor

University of Jammu

v
Preface

To sustain competition in current business environment, managers have to be more

decisive to offer high-quality goods/services at cost-effective rates. In addition to
the routine projections and trend analyses, they require the knowledge of advanced
research techniques to make quick and accurate decisions.
Data in its raw form is usually useless, and the driving force behind any
data-driven organization is insights and conclusions drawn from the data, which can
suggest a new course of action. In order to draw insights and reach conclusions,
managers need analytical tools and techniques to interpret data from various sources
and use the results for better decision-making. Further, business analytical tools also
help the researchers and academicians in better theory development. Many
researchers have claimed that the availability of business analytics has played a
great role in converting organizations into high-performance work systems.
Companies using these techniques in their decision-making process are in a better
position to compete and sustain competitive advantage by minimizing risk,
investing in accurate innovations, and above all providing a better picture of what is
practically viable and non-viable.
The significance of the analytical needs can be judged from the fact that a
significant proportion of high-performance companies have high analytical skills
among their personnel. And companies employing data analytical methods and
techniques in their decision-making process are in a better position to compete and
sustain competitive advantage. Among the various statistical techniques, structural
equation models (SEMs), including confirmatory factor analysis, help in both
theory building and predictive analysis, and their roles have become more crucial
with the advent of big data. Carrying out predictive modelling on large data sets has
the potential to generate fresh insights for business practitioners and drive new
theories for management researchers. Addressing this need, our efforts in this
context are to fill the extant gap and help managers and entrepreneurs in
knowledge-based decision-making.

vii
viii Preface

This edited book is a collection of ten chapters covering diverse data analytics
topics including a conceptual chapter on big data (Chap. 2) and eleven empirical
chapters on various functional areas like finance (Chaps. 3–6), marketing (Chaps. 7
–8), and HR/OB (Chaps. 9–10). The contributors have used basic techniques like
correlation, forecasting, and trend analysis and advanced higher order modelling
techniques like a gravity model and a panel data quantile-regression, structural
equation modelling, mediation analysis, moderation analysis etc. These chapters are
going to be very useful to the researchers and practitioners in the application of
analytical tools and techniques for better strategic decision-making.

Jammu, India Hardeep Chahal

Jammu, India Jeevan Jyoti
Singapore, Singapore Jochen Wirtz
Acknowledgements

We acknowledge all those people who were involved and helped in completing this
project. At the outset, we would like to thank the authors who have contributed to
this book in terms of their time and expertise. We also wish to acknowledge the
valuable contributions of the reviewers regarding the improvement of quality,
coherence, and content presentation of chapters. We also appreciate the referees for
reviewing the chapters, and scholars for editing and organizing the chapters.

Hardeep Chahal
Jeevan Jyoti
Jochen Wirtz

ix
Contents

1 Business Analytics: Concept and Applications . . . . . . . . . . . . . . . . 1

Hardeep Chahal, Jeevan Jyoti and Jochen Wirtz
2 Big Data Analytics: The Underlying Technologies Used
by Organizations for Value Generation . . . . . . . . . . . . . . . . . . . . . 9
Bhavna Arora
3 Application of Panel Quantile Regression and Gravity Models
in Exploring the Determinants of Turkish Automotive Export
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Ibrahim Huseyni, Ali Kemal Çelik and Miraç Eren
4 Impact of Macroeconomic and Bank-Specific Indicators on Net
Interest Margin: An Empirical Analysis . . . . . . . . . . . . . . . . . . . . . 45
Arif Ahmad Wani, S. M. Imamul Haque and Shahid Hamid Raina
5 A Trend Analysis of Reforms in the Indian Bond Market . . . . . . . 65
Rahul Rangotra
6 Demand Forecasting of the Short-Lifecycle Dairy Products . . . . . . 87
Rahul S. Mor, Swatantra Kumar Jaiswal, Sarbjit Singh
and Arvind Bhardwaj
7 Customer Experience and Its Marketing Outcomes in Financial
Services: A Multivariate Approach . . . . . . . . . . . . . . . . . . . . . . . . . 119
Swati Raina, Hardeep Chahal, Phillip Klaus and Kamani Dutta
8 Re-investigating Market Orientation and Environmental
Turbulence in Marketing Capability and Business Performance
Linkage: A Structural Approach . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Jagmeet Kaur, Hardeep Chahal and Mahesh Gupta

xi
xii Contents

9 Examining the Impact of Cultural Intelligence on Knowledge

Sharing: Role of Moderating and Mediating Variables . . . . . . . . . . 169
Jeevan Jyoti, Vijay Pereira and Sumeet Kour
10 Employer Branding Analytics and Retention Strategies for
Sustainable Growth of Organizations . . . . . . . . . . . . . . . . . . . . . . . 189
Ravindra Sharma, S. P. Singh and Geeta Rana
Editors and Contributors

About the Editors

Dr. Hardeep Chahal is Professor in the Department of Commerce, University of

Jammu, India. Her research interests focus on services marketing with an emphasis
on consumer satisfaction and loyalty, service quality, brand equity, and market
orientation. Her work has been published in refereed international journals like
Managing Service Quality, International Journal of Health Care Quality
Assurance, International Journal of Bank Marketing, Journal of Relationship
Marketing, Journal of Health Management, Management Research Review, Total
Quality Management and Business Excellence, Corporate Governance, Global
Business Review. She has also co-edited books such as “Sustainable Competitive
Advantage: A Road to Success” (Excel India Publishers, New Delhi, 2015),
“Research Methodology in Commerce and Management” (Anmol Publications,
New Delhi, 2004), and “Strategic Service Management” (Excel Books, New Delhi,
2010). She currently serves on the editorial boards of the International Journal of
Health Care Quality Assurance (Emerald) and Journal of Service Research (IIMT,
India). She was Visiting Fellow at the Loughborough University, UK, under
Commonwealth Fellowship Scheme (British Academy Award) and also at Gandhi
Institute of Business and Technology, Jakarta, Indonesia.
Dr. Jeevan Jyoti is Assistant Professor in the Department of Commerce,
University of Jammu, India, and has rich experience in teaching and research in
business education. Her areas of interest are strategic human resource management,
organizational behaviour, and entrepreneurship. She has publications in reputed
international refereed journals such as Personnel Review, Cross Cultural
Management: An International Journal, International Journal of Management
Concepts and Philosophy, International Journal of Educational Management,

xiii
xiv Editors and Contributors

IIMB Management Review, Total Quality Management and Business Excellence,

Metamorphosis: A Journal of Management Research, Vision: The Journal of
Business Perspective, Global Business Review, SAGE Open. She has, to her credit,
one edited book and 17 chapters in edited books.
Jochen Wirtz is Vice Dean, Graduate Studies, and Professor of marketing at the
NUS Business School, National University of Singapore. He has published over
200 academic articles, chapters, and industry reports, including five features in
Harvard Business Review. He has more than 10 books including “Services
Marketing: People, Technology, Strategy” (World Scientific, eighth edition, 2016),
“Essentials of Services Marketing” (Pearson Education, third edition, 2018), and
“Winning in Service Markets” (World Scientific, 2017).

Contributors

Bhavna Arora Department of Computer Science & IT, Central University of

Jammu, Jammu, J&K, India
Arvind Bhardwaj Department of Industrial & Production Engineering, National
Institute of Technology, Jalandhar, Punjab, India
Ali Kemal Çelik Ardahan University, Ardahan, Turkey
Hardeep Chahal Department of Commerce, University of Jammu, Jammu,
Jammu and Kashmir, India
Kamani Dutta University of Jammu, Jammu, India
Miraç Eren Ondokuz Mayıs University, Samsun, Turkey
Mahesh Gupta University of Louisville, Louisville, USA
S. M. Imamul Haque Department of Commerce, Aligarh Muslim University,
Aligarh, UP, India
Ibrahim Huseyni Şırnak University, Şırnak, Turkey
Swatantra Kumar Jaiswal Department of Industrial & Production Engineering,
National Institute of Technology, Jalandhar, Punjab, India
Jeevan Jyoti Department of Commerce, University of Jammu, Jammu, Jammu
and Kashmir, India
Jagmeet Kaur Government General Zorawar Singh Memorial Degree College,
Reasi, India
Phillip Klaus School of Management Centre for Advanced Research in
Marketing, Cranfield University, Bedfordshire, UK
Editors and Contributors xv

Sumeet Kour Department of Commerce, University of Jammu, Jammu, Jammu

and Kashmir, India
Rahul S. Mor Department of Industrial & Production Engineering, National
Institute of Technology, Jalandhar, Punjab, India
Vijay Pereira University of Wollongong, Dubai Campus, Dubai, United Arab
Emirates
Shahid Hamid Raina Department of Economics, Central University of Jammu,
Jammu, India
Swati Raina Lovely Professional University, Phagwara, Punjab, India
Geeta Rana Swami Rama Himalayan University, Dehradun, India
Rahul Rangotra Department of Management Studies, Central University of
Kashmir, Srinagar, Jammu and Kashmir, India
Ravindra Sharma Uttarakhand Technical University, Dehradun, India; Swami
Rama Himalayan University, Dehradun, India
Sarbjit Singh Department of Industrial & Production Engineering, National
Institute of Technology, Jalandhar, Punjab, India
S. P. Singh Gurukul Kangri Vishwavidyalaya, Haridwar, India
Arif Ahmad Wani Department of Commerce, Aligarh Muslim University,
Aligarh, UP, India
Jochen Wirtz National University of Singapore, Singapore, Singapore
Chapter 1
Business Analytics: Concept
and Applications

Hardeep Chahal, Jeevan Jyoti and Jochen Wirtz

Abstract The word business analytics has become a buzzword in the present era of
experience economy. Primarily, the proliferation of the Internet and information
technology has made business analytics a robust application area. On the other
hand, it is equally impossible to deny its significant impact on the fields of infor-
mation technology, quantitative methods and the decision sciences (Cegielski and
Jones-Farmer 2016). Both industry and academia seek to hire talent in these areas
with the hope of developing organizational competencies to sustain competitive
advantage. Hopkins et al. (2007) and Hair et al. (2003) assert that adequate
knowledge on business analytics techniques enables the analysts—practitioners,
managers, etc—with capabilities that enable them to take quick and smart decisions
and provide stable leadership to the organization to compete in the market effec-
tively. On the other hand, it provides a platform for the researchers and academi-
cians to lay down path for the theory development. However, Hawley (2016)
pointed that business analytics focuses more on understanding the organizational
culture than mere technology. Thus, for successful implementation and harnessing
the benefits of business analytics the knowledge of an organization’s motivation,
strengths and weaknesses is necessary (Hawley 2016).

Keywords Business analytics Decision making
Statistical techniques


Quantitative analysis Business applications

H. Chahal
J. Jyoti (&)

Department of Commerce, University of Jammu, Jammu, J&K, India
e-mail: [email protected]
H. Chahal
e-mail: [email protected]
J. Wirtz
National University of Singapore, Singapore, Singapore

© Springer Nature Singapore Pte Ltd. 2019 1

H. Chahal et al. (eds.), Understanding the Role of Business Analytics,
https://doi.org/10.1007/978-981-13-1334-9_1
2 H. Chahal et al.

1.1 Introduction

The word business analytics has become a buzzword in the present era of experi-
ence economy. Primarily, the proliferation of the Internet and information tech-
nology has made business analytics a robust application area. On the other hand, it
is equally impossible to deny its significant impact on the fields of information
technology, quantitative methods and the decision sciences (Cegielski and
Jones-Farmer 2016). Both industry and academia seek to hire talent in these areas
with the hope of developing organizational competencies to sustain competitive
advantage. Hopkins et al. (2007) and Hair et al. (2003) assert that adequate
knowledge on business analytics techniques enables the analysts—practitioners,
managers etc—with capabilities that enable them to take quick and smart decisions
and provide stable leadership to the organization to compete in the market effec-
tively. On the other hand, it provides a platform for the researchers and academi-
cians to lay down path for the theory development. However, Hawley (2016)
pointed that business analytics focuses more on understanding the organizational
culture than mere technology. Thus, for successful implementation and harnessing
the benefits of business analytics the knowledge of an organization’s motivation,
strengths and weaknesses is necessary (Hawley 2016).
Business analytics comprises techniques and processes, namely statistical anal-
ysis; forecasting; predictive analysis and optimization, which maintain and sustain
business performance (Davenport and Harris 2006; Hopkins et al. 2007). It is

Information Optimisation

Prescri ve Analytics –
How it can happen again?

Predi ve Analy cs –
When it can happen?

Diagnos c Analy cs –
Why it happened?
Business Value

Descriptive Analytics
– What happened?

Information

Level of Analytics

Fig. 1.1 Business analytics stages

1 Business Analytics: Concept and Applications 3

spread across four stages—descriptive analytics, diagnostic analytics, predictive

analytics and prescriptive analytics (Fig. 1.1). Each stage helps the practitioners in
harnessing business value depending upon the nature of importance and business
objectives. Accordingly, business analytics has a wide range of application in
varied business areas that include customer relationship management, human
resource management, financial management, marketing, supply chain management
across all sectors. Its application facilitates and equips business and service orga-
nizations with better understanding of primary and secondary data for decision-
making. The effective application of business analytics can help the business and
service organizations to improve profitability, increase market share and revenue
and provide better return to a shareholder.

1.2 Business Analytics: Its Applications

Research, in the last few decades, highlights on the growing need of application of
advanced techniques in the business decision-making for managers (Evermann and
Tate 2016). The role of business analytics has become paramount due to complex
business problems, limited ability to analyse the available solutions and shortage of
time for decision-making (Davenport and Harris 2006). They claim that business
analytical techniques provide managers with more confidence in dealing with
uncertainty in spite of the availability of huge data. Besides, these techniques are of
great interest and utility to behavioural and social scientists also, who continually
struggle with complex phenomenon, to detect pattern buried in complex quantita-
tive data. Hopkins et al. (2007) and Hair et al. (2003) assert that adequate
knowledge on business analytics techniques enables the analysts—practitioners,
managers, etc—with capabilities that enable them to take quick and smart decisions
and provide stable leadership to the organization to compete in the market
effectively. On the other hand, it provides a platform for the researchers and
academicians to lay down path for the theory development.
While highlighting on the significance of the analytical needs, Davenport and
Harris (2006) claimed that most of the high-performance work systems/
organizations have employees with high analytical capabilities. And companies
using such techniques in their decision-making process are in a better position to
compete and sustain competitive advantage. Among the various statistical tech-
niques, structural equation models (SEMs), including confirmatory factor analysis,
help in both theory building and predictive analysis and their role has become more
crucial with the advent of big data. The predictive modelling enables managers and
the researchers to have fresh insights for their future endeavours (Shmueli and
Koppius 2011). Addressing this need, our efforts in this context will fill the extant
gap and will help managers and entrepreneurs in a knowledge-based decision-
making (Hair Jr. et al. 2011).
This edited book is a collection of ten research papers including a conceptual
paper on big data (Chap. 2) and nine empirical papers in the areas of finance
4 H. Chahal et al.

(Chaps. 3–6), marketing (Chaps. 7–9) and HR/OB (Chap. 10) that can help the
researchers and practitioners in the application of analytical tools and techniques for
strategic decision-making.
The second chapter on big data analytics delves upon the underlying tech-
nologies used by organizations for value generation. The author has discussed the
challenges faced by business organizations in monitoring the data that has grown
from terabytes to exabytes and petabytes. Further, the compounded rate of data is
further growing much fast. The deluge of data generated, which is both valuable
and challenging, along with emerging technologies and techniques that are used to
handle it is referred to as the evolution and era of “big data”. She further expressed
that to leverage the large volume of data for driving the business enterprises, timely
and accurate insights derived out of the big data are a big challenge. Further,
handling and analysis of big data are a challenge for all types of organizations with
respect to its storage and technical expertise. The chapter highlights big data
characteristics like volume, value, variety, velocity, veracity and variability and its
analysis through exploratory, confirmatory and qualitative data analyses. Further,
technologies like Hadoop and Apache Spark in handling big data have also been
discussed.
The following section of the chapter discusses in brief the contribution of the
papers in the three functional areas: finance; marketing and HR/OB.

1.3 Finance

Nowadays, macroeconomic models are being used to forecast the future of the
economy. Modern economics and business management are using econometric
applications for extensive training of its personnel. Managers are using econometric
applications for devising optimal economic strategies for better insight, superior
value, optimized solutions and sustain competition. Econometric applications
provide organizations with a potent set of tools to unlock the power of information
for effective decision-making (Kolluru and Mishra 2012). In this context, Huseyni,
Celik and Eren (Chap. 3) used a gravity model approach to analyse the primary
factors that influence Turkey’s vehicle (car, minibus, bus, van and truck) exports to
its major trading partners over the period of 2005–2015. For this purpose, a gravity
model and a panel data quantile regression approaches have been performed by the
bootstrap method for empirical results. The results revealed that the population of
importer country and the amount of per capita income are positively correlated with
the amount of Turkish automotive exports. Additionally, when the distance between
importer country and the capital of Turkey increases, the amount of Turkish
automotive industry exports was more likely to have a decreasing behaviour.
Further, exporting to an EU member country has a statistically significant
increasing impact on the amount of automotive industry exports. The estimation
results also indicated that the real exchange rate was not a statistically significant
determinant of the amount of automotive industry exports during the sample
1 Business Analytics: Concept and Applications 5

period. The authors concluded that Turkey cannot exactly succeed to use the
competitive advantage of the possible declines on real exchange rates due to higher
costs of imports in the automotive industry.
The authors of fourth chapter, Wani, Haque and Raina, empirically proved the
positive correlation of gross domestic product (GDP), inflation, lending interest rate
(LIR) and capital-to-risk weighted assets ratio (CRAR) with the net interest margin
(NIM) in the banking industry. The study established that a favourable macroe-
conomic environment proves to be a main driver for encouraging NIM with a
prudent control over CRAR along with NPLs. The study suggested installing the
latest advances and practices of risk management especially on the credit front,
which will also help the banks to utilize excessive capital rather than accumulating
it unnecessarily.
In fifth chapter, Rangotra analysed the impact of various reforms undertaken by
the Government of India to improve liquidity, transparency and security in the
Indian bond market. It considers reforms initiated by the Government of India since
1992 that include introduction of system of primary dealers, establishment of
Clearing Corporation of Indian Limited as a clearing house, introduction of
screen-based trading in government securities through Negotiated Dealing
System-Order Matching (NDS-OM), trading of bonds through stock exchanges,
introduction of delivery versus payment system. The impact of reforms on the
Indian bond market has been examined by analysing the combined gross borrowing
of centre and state government through government securities (increased by around
8900% from 1991–92 to 2016–17), secondary market transactions in government
securities (increased by around 430,000% from September 1994 to September
2017), net corporate debt outstanding (increased by around 225% from June 2010
to September 2017), total trade in corporate bond market (increased by around
1450% from 2007–08 to 2016–17) and other variables related to the liquidity and
size of Indian bond market. The impact of reforms is found to be positive for all the
dimensions but has a significant impact only on the size and liquidity of the Indian
bond market. Mor, Jaiswal, Singh and Bhardwaj (Chap. 6) have focused on demand
forecasting of the short lifecycle dairy products. They have compared the perfor-
mances between different forecasting models for the prediction of group of dairy
products. Authors compared the moving average, regression, multiple regression
and Holt-Winters models based on MAPE, MAD, MSE and RMSE for the demand
forecasting of a time series formed by a group of dairy products.

1.4 Marketing

Contemporary business organizations use business intelligence and analytics to

solve the magnitude and impact of data-related problems (Chen et al. 2012). It is
creating an exemplary change in the way data are being used, and the marketing and
sales department is no exception to this. It is pivotal that marketing professionals
should become tech savvy and use technology to harness the importance of
6 H. Chahal et al.

business analytics (Proschoolonline 2017). In the context of marketing, business

analytics integrates market and customer-related data, technology, quantitative
analysis and computer-based models to provide managers with various relevant
prospective for better and optimal decision-making. Among varied areas in mar-
keting, relationship management with customers and employees is a pivotal area in
the service economy that demands continuous monitoring by service firms to
sustain competitive advantage.
In this context, three papers are based on primary data that encompass
customers’ and employees’ perspectives and are analysed using advanced structural
equation modelling technique to understand how it helps in decision-making for
enhancing organizational performance. Raina, Klaus, Dutta and Chahal have
studied the impact of customer experience on marketing outcomes in financial
services. The study establishes customer experience as multidimensional construct
comprising brand experience, service experience and post-purchase experience. The
study has used systematic data analytical process that includes exploratory factor
analysis, item analysis and confirmatory factor for construct validation. The authors
have also established the relationship between customer experience and marketing
outcomes (customer satisfaction, behavioural loyalty intentions, word of mouth and
service value) using structural equation modelling. The result revealed that moment
of truth is the most important factor that has to be considered by financial services
for creating favourable customer experience quality followed by outcome focus,
peace of mind and product experience. Further, product experience has low
association with customer satisfaction, behavioural loyalty intentions, word of
mouth and service value. The relatively weak association with all marketing out-
comes suggests that customer awareness about competitive services has increased
and they no more accept every type of services from the same service provider
because of varied customers’ choices and their ability to compare offerings with
different service providers.
The study by Kaur, Chahal and Gupta (Chap. 8) has used advanced structural
equation modelling and moderation techniques to re-investigate the role of market
orientation and environmental turbulence in marketing capabilities and business
performance. The paper has explored and established marketing capabilities as
multidimensional scale using three-stage process—EFA, item analysis and CFA—
that consist of: outside in, inside out and spanning dimensions and market orien-
tation as a function of four factors relating to intelligence generation I (customers
needs), intelligence generation II (customers satisfaction), intelligence dissemina-
tion and responsiveness, both of which play significant role in enhancing organi-
zational performance. The authors used advanced marketing analytics to establish
positive relationship of marketing capabilities with market orientation and organi-
zational performance. Further using SEM-based mediation modelling approach,
authors also found that marketing capabilities act as a mediating variable between
market orientation and marketing capabilities and market orientation and financial
performance relationships. Further using SEM-based multigroup analysis, Gupta
et al. have established the moderating role of environment turbulence in marketing
capabilities and market orientation relationship.
1 Business Analytics: Concept and Applications 7

1.5 Human Resources/OB

Understanding organization and its people have gained immense attention in the
present business scenario due to the value attached to human aspects for providing
sustainable competitive advantage. Human resources are rare, valuable and cannot
be copied or substituted (Barney 1991). These have immense creative capabilities to
upgrade the innovative domain of an organization. Though cultural diversity results
in knowledge sharing at various platforms in the organization, it also has adjust-
ment issues. In this context, Kour, Jyoti and Pereira (Chap. 9) have evaluated the
role of cultural adjustment (CCA) and work experience between cultural intelli-
gence (CQ) and knowledge sharing relationship in the banking sector. Structural
model explains the indirect effect of CQ on knowledge sharing with cross-cultural
adjustment as mediator. Further, the role played by language proficiency and work
experience has also been evaluated. The result revealed that CCA mediates the
combined effect of CQ and work experience on knowledge sharing. The study
contributes towards cultural intelligence theory. It helps in understanding the
complex relationships in organizational setup, which can be of immense use for the
practitioners at the workplace. The last chapter by Kumar, Singh and Rana analyses
the impact of employer branding on organizational attractiveness in Indian orga-
nizations using factor analysis, Pearson‘s r and step-wise multiple regression
analysis techniques. The results indicate that employer branding has a positive and
significant relationship with organizational attractiveness. Since economic value,
application value, social value and development value emerged as strong predictors
of attracting and retaining employees, employers can provide employees with
marketable skills through training and development in return for effort and flexi-
bility. The authors believed that the study findings can help in identifying varied
EBs aspects that are effective in extracting organizational attractiveness and
incorporating them into the organizational culture.
There is significant evidence that the ability to make better decisions improves
with the usage of quantitative-, qualitative- and financial-based techniques. Hence,
this book offers a relevant resource that can help the audience (research scholars,
practitioners, market researchers, etc.) in the application and interpretation of sta-
tistical practices, using real-world applications from the fields of marketing, human
resources, finance, operations research and information technology relating to
issues like preferences of a customer base, quality of manufactured products, high-
performance human resource policy, employee resilience, availability of financial
resources, operational flexibility, etc.
8 H. Chahal et al.

References

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Cegielski, C. G., & Jones-Farmer, L. A. (2016). Knowledge, skills, and abilities for entry-level
business analytics positions: A multi-method study. Decision Sciences Journal of Innovative
Education, 4(1), 91–118.
Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business intelligence and analytics: From big
data to big impact. MIS Quarterly, 36(4), 1165–1188.
Davenport, T. H., & Harris, J. G. (2006). Competing on analytics: The new science of winning.
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Hair, J. F., Bush, R. P., & Ortinau, D. J. (2003). Marketing research: Within a changing
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Hair, J. F., Jr., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2011). Essentials of
Business Research Methods. Armonk, N.Y.: M.E. Sharpe.
Hawley, D. (2016). Implementing business analytics within the supply chain: success. The
Electronic Journal Information Systems Evaluation, 19(2), 112–120.
Hopkins, M. S., LaValle, S., Balboni, F., Kruschwitz, N., & Shockley, R. (2007). 10 insights: A
first look at the new intelligence enterprise survey on winning with data. MIT Sloan
Management Review, 52(1), 21–31.
Kolluru, S., & Mishra, R. K., (2012). Econometric Applications for Managers. New Delhi: Allied
Publisher.
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analytics-for-marketing-professionals: http://www.proschoolonline.com/blog/business-analytics-
for-marketing-professionals/.
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35(3), 553–572.
Chapter 2
Big Data Analytics: The Underlying
Technologies Used by Organizations
for Value Generation

Bhavna Arora

Abstract The expansion of Internet and its applications globally has witnessed
generation of high volume of data resulting in high volume of information. In the
contemporary era of digital world, data is seen as the driving force behind the
progression of business enterprises. Today, the data that is generated worldwide has
grown ranging from terabytes to exabytes and petabytes, and the compounded rate
of data further growing is much fast. The data generated widely has many forms
and structures. The deluge of data generated, which is both valuable and chal-
lenging, along with emerging technologies and techniques that are used to handle it
is referred to as the evolution and era of “Big Data”. As the big data is generated
from multitudinous sources, majority of this data exists in unstructured form that
demands specialized processing and storage capabilities, unlike the structured data
that uses storage and processing of traditional relational structures. This results in
high complexity and uncertainty in data. The usage of statistical analysis,
computer-based models and quantitative methods that can help the business orga-
nizations to improve insights for better operations and decision-making is referred
as business analytics. To work intelligently and focus on value generation, orga-
nizations need to focus on business analytics. The analytics are a critical component
of big data computing. As defined in the literature, an intelligent enterprise has the
characteristics similar to human nervous system and is responsive to external
stimuli. To leverage the large volume of data for driving the business enterprises,
timely and accurate insights derived out of the big data are a big challenge. The
technologies like Hadoop and Apache Spark assist in handling big data on both
fronts. However, handling and analysis of big data are a challenge for any orga-
nization with respect to its storage and technical expertise. Business analytics is
used in business organizations for value generation by data manipulation along with
business intelligence and report generation. Advanced analytics are also used by
business enterprises that use techniques of data mining, data optimization and
predictive forecasting.

B. Arora (&)
Department of Computer Science & IT, Central University of Jammu, Jammu, J&K, India
e-mail: [email protected]

© Springer Nature Singapore Pte Ltd. 2019 9

H. Chahal et al. (eds.), Understanding the Role of Business Analytics,
https://doi.org/10.1007/978-981-13-1334-9_2
10 B. Arora

Keywords Big Data
Data Analytics
Hadoop
V’s of Big Data

Apache Spark

2.1 Introduction to Big Data

The contemporary era has witnessed very large volumes of data and the termi-
nology and trends that have been accepted globally with these are “Big Data”. The
author in paper (“What Is Big Data?—Gartner IT Glossary—Big Data”, n.d.) has
defined big data as “Big data is high-volume, high-velocity and high-variety
information assets that demand cost-effective, innovative forms of information
processing for enhanced insight and decision-making”.
In Manyika et al. (2011), the author refers “Big Data” to “data set whose size is
beyond the ability of typical database software tools to capture, store, manage and
analyse”.
The volume of data that is being stored today around the world is exploding. In
the year 2000, the world witnessed storage of 8 lac petabytes of data. With the
expansion of Web and its applications, the data that is being stored is growing
exponentially. The data is likely to rise to 35 zettabytes by the year 2020. The data
that is created is not analysed efficiently, and the insights of the data is not revealed.
The data contains hidden insights that the companies can use to enhance their
business perspectives. How the volume of big data impacts the human mind is very
challenging. Considering the data volume that consists of multiples of terabytes
may be considered as big data, but actually when it can be managed in network
attached storages (NAS) or storage area network (SAN) using additional disc
arrays, then it might not be considered as really Big Data. When the data exceeds
this limit, i.e. about petabytes in size and can only be managed with sophisticated
applications and tools, the data can be referred as “Big Data”. This would require a
complex distributed computing and storage grids extensively, so that this data could
be managed.
However, companies used various tools and technologies to collect and store
different types of big data. The analysis of these diversities of big data is chal-
lenging as the tools that are required for big data analysis are extremely complex to
design and implement. The management of this data is another big challenge as the
companies should have the clarity on big data adoptions. It is paramount in agreeing
that such information in big data which is huge and complex has created various
challenges for organizations that did not exist earlier. The large volumes of data
available pose several problems for researchers, analysts and decision-makers in the
industry. At times, the decision-makers in the organization tend to make their
decisions without having complete facts, and others find the business intelligence
along with the data analytics to be part of their visionary plans so as to enhance
business competitiveness.
The evolution of big data has witnessed the explosive growth in the entire
world’s data that can be used to make decisions, but this can only be useful if this
2 Big Data Analytics … 11

can be made in timely manner. For this, powerful tools are needed that can assist in
storage, extraction and analysing the data from the big data sets. The big data can
also be defined as that data that cannot be processed through conventional methods
of processing. To mention few varieties and sources of data that come under the big
data realm are as follows (Jain 2015):
1. Black box data captures the voice and recordings of flight crew members of
helicopter and other aircraft along with the information pertaining to the per-
formance of the aircraft.
2. Data of stock holdings where the decisions made by a customer on a share or
equity of different companies.
3. Data from social media websites such as Facebook and Twitter that holds views
and other information posted by millions of users across the globe.
4. Transport and meteorological data sources.
5. Data retrieved by search engines from different databases.
6. Metamorphic and Census data.
7. Connection-oriented data that includes sensory data.
8. Data from cloud storages that provides computing and data on demand.
Big data is more than just more information; it represents the beginning of the
end of the industry experience as a core competitive advantage (Stubbs 2014). Big
data is not a philosophical fancy anymore. It is already in place in industry. Big data
cannot be argued as just the latest version of “data”. Today, the users are generating
much more data and more types of data than before. In their work, Manyika et al.
(2011) have proposed five major contributions that big data contributes to business
organizations:
• transparency creation by making big data more accessible and ready to use in
timely manner for value generation
• performance improvement by enabling experimentation
• population segmentation by tailoring products and services that meet specific
needs
• decision-making support
• innovative business models, products and services
Big data and business analytics work hand in glove. Without data, analysis
cannot be done. Without business analytics, big data is just noise. Big data bears the
potential of making things efficient and is capable of generating returns. These
returns include benefits to internal value such as productivity or external value like
revenue generation. It offers exceptional insights along with predictive capabilities
for those who are able to leverage it.
12 B. Arora

2.2 The V’s of the Big Data

The contemporaneous era is witnessing production of data at astronomical rates. To

analyse this data that is constantly varying, new tools and technologies are con-
tinuously being developed by experts that will be able to handle the complexities of
large volumes of data. The future trend is that the big data is going to grow more
rather than decrease, as more and more data generating applications are growing.
Big data can be characterized by volume, value, variety, velocity (Philip Chen and
Zhang 2014), veracity and variability, and each of these parameters can be defined
as under:

2.2.1 Volume

Today, the large volume of data is generated because nowadays organizations

collect and process data from a diverse range of sources such as application gen-
erated logs, machine-generated data, email data, weather and geographic informa-
tion systems (GIS) data, survey data, reports, social media data. Big data analytics
have the capability to compute gigantic volume of information. Data volumes have
reached levels to terabytes (TB) or petabytes (PB). As an example, the financial
industry produces voluminous data in terms of market data, quotes and financial
trading. The New York Stock Exchange creates about more than one terabyte of
data per day (“Want to make big bucks in stock market? Use Big Data Analytics”,
n.d.) and if this volume is calculated over the month, year and so on, the volume of
data is immense. About 10 billion photographs (Beaver 2008) were hosted by
Facebook creating about one petabyte of data storage in the year 2008. Another site
Ancestry.com, stores around four petabytes of data (Bertolucci 2013). Even the
Internet archive stores about two petabytes of data, and it is accelerated at a rate of
about twenty terabytes per month (“1. Meet Hadoop—Hadoop: The Definitive
Guide, 3rd Edition [Book]”, n.d.). These big data structures comprising of high
volumes of data tends to impose limitation on the storage and processing capa-
bilities. It also imposes limitations to the database structures, and hence, the data-
base modelling gets complicated as the data grows. In his work (Brock and Khan
2017), the author analyses that the huge amount of data poses challenges to
underlying storage infrastructure which in turns calls for systems with scalability
and capability for distributed querying. High computational power and parallel
processing are required for analysing big data as the traditional database techniques
are not able to cope with big data, as the size of data sets has surpassed the
capabilities of computation and storage.
2 Big Data Analytics … 13

2.2.2 Variety

The traditional systems heavily rely on underlying structured data whose dimensions are
considered as accuracy, completeness, relevance and timeliness. The inputs to such
systems need to be entered judiciously and meticulously so that the output that is
produced in the form of reports is meaningful and useful. The big data is heterogeneous.
In such environments, the system needs to use techniques for data cleaning so as to
eliminate the garbage data in source. Data collected from various sources like applica-
tions, stock data, emails, geographical data, weather data, social media application data is
difficult to handle as it comes from a variety of sources, and it is virtually impossible to
convert this heterogeneous data to a conventional structured form for processing. In
order to process such data, special techniques and technologies are used that can
understand and go beyond the traditional processing of the relational structured data. Big
data solutions need different types of processing tools to process heterogeneous data.

2.2.3 Velocity

The rate at which the data flows in the system and its environment is termed as
velocity. With the Internet and mobile data coming in the lives of the consumer, the
era witnesses high rate of data flow as the consumers carry with their devices, a huge
volume of streaming source of data that consist of geo-located images and audios.
Studies reveal that in the year 2013, about five exabyte data were generated in the
world every 10 min. Today, this figure has risen exponentially risen, and the data is
being generated every minute. However, the importance of velocity of big data
follows the similar rate of increase as in the case of volume of the data. For example,
the business Walmart creates about 2.5 petabytes per hour (Brock and Khan 2017).
One of the main challenges to the velocity is the communication networks. Since the
big data processing demands real-time processing, the processing capabilities for
inflow of the data streams in the networks are also a big challenge.

2.2.4 Veracity

The reliability and trustworthiness of data are termed as veracity of data. It also
refers to the quality of the data. The point to focus on is “how accurate is all this
data?” As an example, consider the tweets in Twitter posts. These posts contain
hashtags, typos, abbreviations, etc. The data that is to be considered should be
reliable, accurate and trustworthy. Manipulation and analysis of such data need to
be qualitative and trustworthy to get correct insights from it. For real-time appli-
cations, to provide correct and reliable data at times the applications may produce
nearest best results in the cases where the data that is being analysed in real-time
applications fails to deliver in a particular moment.
14 B. Arora

2.2.5 Value

Value refers to the worthiness of the data being extracted. On one hand, if the
organization has voluminous amount of data but unless it can be made useful for the
organization, it is worthless. Even though there is an explicit association between
data and insights, it does not definitely mean that there is value in big data. The
original data received might have low value as compared to its volume. By ana-
lysing a large volume of data appropriately, high value and pronounced insights
from the data can be obtained. The significance of embarking on initiatives of big
data is to understand the costs of analysing and reaping the benefits during the
process of collecting and analysing data. Thus, it ensures that the data that is reaped
is monetized and the organization is benefitted to the maximum.

2.2.6 Variability

The variation in the flow rates of data is referred to as variability of data. The
velocity of big data is inconsistent and has periodic troughs and peaks. As the big
data is generated from myriad resources, complexity also has to be analysed.
Complexity arises after collecting data from different sources as it has to connect,
clean, match and transform the data (Fig. 2.1).

2.3 Big Data Classification

As the data sources of big data are numerous, based on the types of data, big data
can be classified broadly into three categories—unstructured, semi-structured and
structured.

2.3.1 Structured Data

The data that is stored in the databases in an orderly manner is referred to as the
structured data. Statistics reveal that structured data only constitutes about

Fig. 2.1 6V’s of Big Data Velocity

V's of Big data

Value
Volume
Veracity
Variability
Variety
2 Big Data Analytics … 15

Sales

Inventory
Metadata
Summary
data

Raw Data

Marketing

Data sources Data Warehouse

Data Marts

Fig. 2.2 Overview of data warehouse and data marts

one-fourth of the data that the organizations use. This data can be used in pro-
gramming and querying structures from databases. The sources of such data can be
from machine input or humans. Data that is generated by machines includes data
from GPS-like devices or sensory devices like the medical equipment, Web
interfaces and logs. Data that is included by human systems includes database
records which involve human intervention in generating data. The two most popular
approaches that can be used to manage large data sets in a structured way are data
warehouses and its subsets, i.e. data marts. A data warehouse can be seen as an
assemblage of data which is isolated from the operational systems and the
decision-making process in any organization. It is a huge repository of historic data.
The data is compiled and assembled from various resources so as to provide timely
and accurate information. The data in a data warehouse is the extracted information
from various functional units of an organization. Before the data is integrated into
the warehouse, it undergoes a series of processes. These preprocesses are data
cleaning, data transformation and data cataloguing. After the preprocessing, the
data is available for higher-level online data mining functions. These warehouses
are controlled by a centralized unit. The subset of data warehouse is a data mart.
The data marts focus on specific functional area only. The warehouse and data mart
both primarily vary in their scope and usage area. The structured data forms only a
small subset of the Big data that is ready for analysis (Fig. 2.2).

2.3.2 Unstructured Data

Unlike the traditional row–column database structure, the unstructured data has no
clear formats in storage. Such data constitutes about 80% of the total data that is
included in big data. Till few years back, such data has been stored and analysed
manually as it was quite difficult to analyse this data. The unstructured data can
16 B. Arora

comprise the machine-generated or the human-generated data. Typical examples of

unstructured machine-generated data include satellite images, data captured from
radars, whereas the unstructured human-generated data is spread across the entire
globe which includes data from the Web content, social media and mobile data.
Users tend to upload data on Facebook, Instagram, audios and videos, etc.; they all
are a part of the massive unstructured data contributed by the user. The largest
unstructured data component is the video data that constitutes big data.

2.3.3 Semi-structured Data

A very thin line exists between the unstructured and semi-structured data. Unless
clearly defined, the semi-structured data can appear as unstructured. Even though
that the information is not typically arranged in traditional database structured
formats, but in order to process this data, some properties that make the data
processing easier and convenient to process are contained in it.

2.4 Data at Rest and Data in Motion

Technically speaking, in order to gain insights from big data, right technology for
various processes like collecting, managing and analysing is required. The pre-
dictive purpose for the same is quite critical. Since the data is from a variety of
sources and is of different types, there is a requirement of different computing
platforms that support in providing meaningful insights. In order to determine the
technology and processes that are required to glean the insights from the big data, it
is imperative to understand the difference between data at rest and data in motion.

2.4.1 Data at Rest

In data handling systems, data at rest refers to data that is stored in stable systems.
The data at rest comprises data compiled and stored in structures like spreadsheets,
databases, warehouses, archives and backups, mobile data. There can be different
points where data is analysed and where its action is taken. This can occur at two
separate times. For example, present month’s business activities can be predicted
based on last month’s sales data by a retailer. The action is making strategic
decisions, and the activity is the sales of the previous month. Market campaigns and
strategies can be planned accordingly based on the variables like customer beha-
viour, sale schemes. Looking at this data analysis, the business can take advantage
and such decisions can impact the sales in the stores, while the customer would be
benefitted with the sale schemes the store offers.
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