Big Data: Innovation and Competitive Advantage in an Information Media Analytics Company

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Michael E. Prescott

Abstract

The advent of technology has allowed for the capture of large volumes of data from a variety of sources.  This has led to an ever-increasing number of firms collecting large amounts of data with the belief that this will give the firm an advantage over its competitors.  However, the question is, does big data by itself really lead to firm advantage?  And if not, how can firms gain an advantage from big data?  This paper investigates the role that big data plays in innovation and firm advantage.  Using the Resource-Based View and Dynamic Capabilities framework, this paper looks at how a firm can gain an advantage from big data.  Through the analysis of a case-study concerning a global information/media analytics company, this paper provides an example of how to build a capability in Digital Data Generation that can lead to improved product or service innovation, and possibly help a firm gain an advantage over its competitors.

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