Data, Analytics and Community-Based Organizations: Transforming Data to Decisions for Community Development

Abstract

The past ten years have seen a revolution in two disciplines related to operations and strategy design. “Big Data ” has transformed the theory and practice of producing and selling goods and services through methods associated with computer science and information technology. “Analytics ” has popularized primarily quantitative models and methods by which organizations and systems can measure multiple aspects of performance. As these fields rely on information technology to collect, store, process and share data, we refer to the collection of knowledge and applications associated with Big Data and analytics as “data analytics and information technology. ” The impacts of data analytics and information technology (IT) are most visible in the actions of for-profit organizations and government. The not-for-profit sector has a more ambivalent relationship with Big Data, analytics and information technology. This is particularly true for mission-driven community-based organizations (CBOs) with limited budgets and small staffs. What role can the Big Data and analytics movements play for nonprofit organizations, especially community-based organizations, and the communities they serve? Will the benefits that accrue to nonprofits from substantial investment in data- and analytics-related technologies and processes justify their costs? This paper reviews the current state of research and practice of data analytics and information technology with a focus on community-based organizations. I argue that there are a number of dimensions along which the needs of CBOs differ markedly from other organizations with respect to data and analytics.

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