The role of data analytics in formulating a business model in the South African metals manufacturing sector

Abstract

Technological advancements are a contributing factor to the success of any business, especially with globalisation mandating flexibility within businesses. The survival of the metals manufacturing companies is dependent on many variables, but the focus will be placed on the role of data analytics in business models. A quantitative approach was used to collect the data utilising Qualtrics software and data were recorded on Excel before being coded and then loaded onto the Statistical Package for Social Sciences (SPSS) software system. All employees in the metals manufacturing companies in South Africa made up the population for this study. The results revealed a relationship between data analytics and business insight involved in developing a business model. In the absence of data, the level of success in decision making is compromised. Over 80 percent of respondents emphasised the importance of data required in making decisions. The ability to make informed decisions gives companies a competitive edge, but a dynamic capability is evidenced through people’s experience in data analysis. The data collected were analysed using quantitative data analysis tools such as chi-squared tests and Cramer’s phi tests, which indicated that data play a pivotal role in developing business models