Previous research has demonstrated that business analytics systems create value and provide competitive advantage for organisations. We argue that organisational and dynamic capabilities, enabled by business analytics systems, can explain how value is created, sustained and renewed. An evolutionary, process-oriented theoretical framework describes how dynamic and organisational capabilities interact over time to create value. The framework is then used to explain how business analytics systems provided value and competitive advantage in a longitudinal case study of a large financial institution. Several critical success factors for the use of business analytics are identified and implications are discussed.
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