Leveraging big data for organizational performance management and control

Authored by: Damminda Alahakoon , Piyumini Wijenayake

The Routledge Companion to Performance Management and Control

Print publication date:  August  2017
Online publication date:  August  2017

Print ISBN: 9781138913547
eBook ISBN: 9781315691374
Adobe ISBN:

10.4324/9781315691374.ch8

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Abstract

Due to large-scale automation and computerization, business processes, as well as communication, within organizations generate and capture large volumes of data in electronic form. The rise of social media, Internet of Things (IOT), and popularity of multimedia have changed and revolutionized the way organizations function, products are manufactured and business is conducted. Such change has resulted in an overwhelming flow of data in both structured and unstructured formats creating what has been called the information age or the age of big data. Organizations that successfully extract maximum value from information and act on their insights have gained huge competitive advantage. The tools, technology and skills that enable organizations to harness the power of big data are referred to as business analytics. Forward-thinking business leaders will use big data as a management revolution, but there will be major challenges to face and resolve to achieve the status of a “big data-enabled organization”. Management control and performance management systems need to adopt big data and data analytics for these to have an impact on organizational management. This chapter discusses the impact of big data on organizational performance management and control (PMC). The chapter will look into traditional management control systems (MCS) and performance management systems (PMS), and discuss how the age of big data will result in next generation MCS and PMS. A key factor in the new systems will be the integration of the ability to manage and use large volumes of diverse unstructured data. This will ensure that managers can access and measure, and hence know, radically more about their businesses from new information sources, and directly translate that knowledge into improved decision making and performance.

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