Ron Berman, Marketing, The Wharton School, and Ayelet Israeli, Harvard Business School
Abstract: What is the impact of deploying an analytics solution on firm output? How is this impact generated by the firm?
We use data from over 1,000 firms to estimate the causal impact of analytics and benchmarking on firm performance. Our initial findings show that adopting an analytics platform is associated with a substantial increase in weekly firm sales, driven mostly through focusing on existing customers.
We then deep-dive to understand how the output of analytics informs firm strategic decisions such as pricing decisions, extending product lines or adding new technologies to capture economic value. One of those analysis will focus on firm benchmarking and how it affects firm decisions. Our analysis will allow to estimate which of those decisions have the biggest impact on firm performance and inform managers on how to use analytics to their advantage.