Realizing value from shadow analytics: A case study

Abstract

Despite suggestions that analytics projects have value, the literature has, at times, glossed over the obstacles organizations must overcome to realize value from analytics. This research reports on a longitudinal case study of one organization's efforts to improve its profit margins by incorporating analytics into how it generates revenue. The case describes a business unit launching the organization's analytics initiatives, which they deliberately hid from their information technology department to reduce interference. Our study finds that realizing shadow analytics value involves a 3-phase sensemaking process that redefines organizational structures and sets organizations on the path towards digital transformation. These findings offer implications to the mechanisms and structures necessary for realizing value from analytics. Practically, analytics projects may require managers to rethink project management practices and business unit’s and IT department’s roles in analytics projects.