The Role of Data Analytics on Business Decision Making: A study of Banking and Insurance Firms in Benin City

Abstract

This study explored the influence of data analytics on business decision-making. The focus was on examining how real-time data analytics affects decision-making efficiency, understanding the overall impact of data analytics on decision-making, and analyzing how the challenges related to the implementation of data analytics affect decision-making within banking and insurance firms in Benin City, Edo State. The study targeted businesses across various sectors, selecting a sample of 100 businesses using convenience sampling to ensure representation from different industries and business sizes. Data was collected through a structured questionnaire, and all 100 responses were analyzed using SPSS 23 with multiple linear regression to test the hypotheses. Findings revealed that real-time data analytics has a significant positive effect on the decision-making efficiency of banking and insurance firms in Benin City. Moreover, data analytics overall positively impacts decision-making efficiency, and the challenges of implementing data analytics also significantly influence decision-making processes. The study recommends that businesses invest in real-time analytics to improve decision-making efficiency, enhance their data analytics capabilities by fostering a data-driven culture, and address the implementation challenges such as data security, skill gaps, and resource limitations to maximize the benefits of data analytics.