INFLUENCE OF BIG DATA ANALYTICS ON COST REDUCTION,

DECISION MAKING AND CUSTOMER EXPERIENCE AT AIRTEL

KENYA.

BY
SOPHIE THAIRU

UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA

SUMMER 2023
INFLUENCE OF BIG DATA ANALYTICS ON COST REDUCTION, DECISION
MAKING AND CUSTOMER EXPERIENCE AT AIRTEL KENYA.

BY
SOPHIE THAIRU

A Research Project Report Submitted to the Chandaria School of Business in Partial

Fulfillment of the Requirement for the Degree of Masters in Business
Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA

SUMMER 2023
 STUDENT'S DECLARATION
I , the undersigned, declare that this is my original work and has not been submitted to any
other college, institution, or imiversity other than the United States International
University Africa in Nairobi for academic credit.

Signed: Date:
Sophie Thairu (ID 660387)

This project has been presented for examination with my approval as the appointed
supervisor.

Signed: Date:
Prof. Kefah Njenga.

Signed: Date:
Dean, Chandaria School of Business

ii
 COPYRIGHT

All rights reserved; no part of this work should be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise without the express written authorization from the
writer. © 2023 Sophie Thairu

iii
 ABSTRACT
The purpose of this study is to investigate the influence of big data on cost reduction,
decision making and customer experience at Airtel Kenya. The study seeks to answers the
following questions: to what extent does big data analytics influence cost reduction at
Airtel Kenya, how does big data influence decision-making at Airtel Kenya and how does
big data analytics influence customer experience at Airtel Kenya.

This study employed descriptive research design. The target population of this study was
1000 employees of Airtel Kenya. This included 18 members of senior leadership, 35
middle level managers and 947 general employees. The study sample size was 99
respondents. The study used questionnaires as the data collection instruments. A pilot
study was conducted at Safaricom limited Nairobi. Collected data was analyzed
qualitatively using the Statistical Package for Social Scientists (SPSS) version 25.0.
Presentation of the analysed data was through tables and pie charts.

The first research question sought to determine the influence of big data analytics on cost
reduction at Airtel Kenya. From the findings, majority of the respondents agreed with a
(mean = 4.012; std = 1.062) that big data analytics decreases the operational costs in the
organization. The regression analysis found a positive and significant correlation between
big data analytics and cost reduction. (r=0.336; sig<0.05). From the findings of ANOVA,
the F-calculated (10.853) was more than the F-critical and the p-value was 0.001 which
was less than 0.05. This implied that the model was statistically significant and was a
good fit for predicting the influence of big data analytics on cost reduction. The second
research question sought to determine the influence of big data analytics on decision-
making at Airtel Kenya. The study found that majority of the respondents agreed with a
(mean = 4.035; std = 1.195) that big data analytics improved accuracy and speed of
decision-making. The regression analysis found a positive and statistically significant
correlation between big data analytics and decision-making. (r=0.046; sig<0.069). From
the findings of ANOVA, the F-calculated (0.184) was more than the F-critical and the p-
value was 0.009 which was less than 0.05. This implied that the model was statistically
significant and was a good fit for predicting the influence of big data analytics on
decision-making. The third research question sought to determine the influence of big
data analytics on customer experience at Airtel Kenya. The findings showed that majority
of the respondents agreed with (mean = 4.092; std = 0.982) that big data analytics can

iv
lead to improved customer satisfaction and loyalty with (mean = 4.333; std = 0.897). The
regression analysis found a positive and statistically significant correlation between big
data analytics and customer experience.(r=0.133; sig<0.019). From the findings of
ANOVA, the F-calculated (0.532) was more than the F-critical and the p-value was 0.019
which was less than 0.05. This implied that the model was statistically significant and was
a good fit for predicting the influence of big data analytics on customer experience.
Based on the first research question which sought to determine to what extent does big
data analytics influences cost reduction at Airtel Kenya, the researcher concluded that big
data analytics not only reduces operational cost but improves the business performance
and increases revenue. Based on the second research question which sought to determine
the influence of big data analytics on decision-making at Airtel Kenya, the researcher
concluded that big data analytics improves accuracy and speed of decision-making. Based
on the third research question which sought to determine the influence of big data
analytics on customer experience at Airtel Kenya, the researcher concluded that big data
analytics enhanced- the ability to identify customer needs and tailor products and services
accordingly which leads to improved customer satisfaction.
This study recommends that Airtel Kenya should invest in big data analytics, advanced
business intelligence tools and skilled resources to be able to reduce costs through the
identification and reduction operational inefficiencies. The tools and resources will also
analysis of consumer behavior and trends which will enable the organization to anticipate
consumer needs more effectively, enhance the firm’s precision marketing strategies.

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 ACKNOWLEDGEMENT
Thank you to the good Lord for enabling me to successfully complete my work. I am
grateful to my supervisor, Prof. Kefah Njenga from the Chandaria school of Business at
the United States International University for his professionalism in guiding me to
successfully undertake this research. Thank you to my colleagues in my MBA class for
the support accorded. Thank you to all the respondents who took part in my study. They
enabled me to successfully complete my research and to make a positive contribution to
my field.

vi
 DEDICATION
I would like to dedicate my work firstly to God for seeing me through it, my family for
the support they accorded me in the course of my work, my friends, for the moral support.
I cannot forget to mention my sister Percy Thairu and my brother Tom Thairu who
supported me emotionally and morally throughout the course of my work. Lastly but not
least, I dedicate this work to my parents, Jane and Edward Thairu who got me to where I
am today.

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 TABLE OF CONTENTS

STUDENT’S DECLARATION ..............................................................................................ii

ACKNOWLEDGEMENT ...................................................................................................... vi
DEDICATION........................................................................................................................vii
LIST OF TABLES ................................................................................................................... x
LIST OF FIGURES ................................................................................................................ xi
LIST OF ACRONYMS .........................................................................................................xii
CHAPTER ONE ...................................................................................................................... 1
INTRODUCTION.................................................................................................................... 1
1.1 Background of the Study ............................................................................................................. 1
1.2 Statement of the problem ............................................................................................................ 6
1.3 Purpose of the Study ................................................................................................................... 8
1.4 Research Questions ..................................................................................................................... 8
1.5 Significance of the Study ............................................................................................................ 8
1.6 Scope of the Study ...................................................................................................................... 9
1.7 Definition of Terms ................................................................................................................... 10
1.8 Chapter Summary...................................................................................................................... 10
CHAPTER TWO ................................................................................................................... 12
2.0 LITERATURE REVIEW ............................................................................................... 12
2.1 Introduction ............................................................................................................................... 12
2.2 Influence of big data analytics on cost reduction ...................................................................... 12
2.3 Influence of big data analytics on decision-making .................................................................. 15
2.4 Influence of big data analytics on customer experience ............................................................ 22
2.5 Chapter Summary...................................................................................................................... 28
CHAPTER THREE ............................................................................................................... 29
3.0 RESEARCH METHODLOGY ...................................................................................... 29
3.1 Introduction ............................................................................................................................... 29
3.2 Research Design ........................................................................................................................ 29
3.3 Population ................................................................................................................................. 29
3.4 Sampling Design ....................................................................................................................... 30
3.5 Data Collection Methods ........................................................................................................... 31
3.6 Research Procedures ................................................................................................................. 32
3.7 Data Analysis Methods ............................................................................................................. 33
3.8 Chapter Summary...................................................................................................................... 34
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CHAPTER FOUR .................................................................................................................. 35
4.0 FINDINGS AND DISCUSSIONS................................................................................... 35
4.1 Introduction ............................................................................................................................... 35
4.2 Background Information ........................................................................................................... 35
4.3 Influence of big data analytics on cost reduction at Airtel Kenya ............................................ 37
4.4 Influence of Big Data Analytics on decision-making at Airtel Kenya ...................................... 40
4.5 Big data analytics influence on customer experience at Airtel Kenya ...................................... 43
4.6 Summary ................................................................................................................................... 46
CHAPTER FIVE ................................................................................................................... 47
5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS .............................. 47
5.1 Introduction ............................................................................................................................... 47
5.2 Summary of the Findings .......................................................................................................... 47
5.3 Discussions................................................................................................................................ 49
5.4 Conclusions ............................................................................................................................... 50
5.5 Recommendations ..................................................................................................................... 51
REFERENCES....................................................................................................................... 54
APPENDICES ........................................................................................................................ 57
Appendix I: Respondents Consent Form ........................................................................................ 57
Appendix II: Letter of Introduction ................................................................................................. 58
Appendix III: Research Questionnaire ............................................................................................ 59
Appendix VI: Debrief Form ............................................................................................................ 61
Appendix V: IRB Ethical Certificate .............................................................................................. 62
Appendix VI: Research Permit ....................................................................................................... 63

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 LIST OF TABLES
Table 3. 1: Target population .............................................................................................30
Table 3. 2: Sample size ......................................................................................................31
Table 3. 3: Results of Reliability Testing ..........................................................................33
Table 4. 1: Response Rate .................................................................................................. 35
Table 4. 2: Age of the respondents .................................................................................... 36
Table 4. 3: Influence of big data analytics on cost reduction ............................................ 38
Table 4. 4: Correlation of big data analytics on cost reduction at Airtel Kenya................ 39
Table 4. 5: Regression Coefficients of cost reduction ....................................................... 39
Table 4. 6: Model Summary For Cost Reduction .............................................................. 40
Table 4. 7: Analysis of Variance of cost reduction ............................................................ 40
Table 4. 8: Influence of big data analytics on decision-making at Airtel Kenya............... 41
Table 4. 9: Correlation of big data analytics on decision-making ..................................... 42
Table 4. 10: Regression Coefficients of decision-making ................................................. 42
Table 4. 11: Model Summary for decision-making ........................................................... 43
Table 4. 12: Analysis of Variance of decision-making...................................................... 43
Table 4. 13: Big data analytics influence customer experience at Airtel Kenya ............... 44
Table 4. 14: Correlation of big data on customer experience at Airtel Kenya .................. 45
Table 4. 15: Regression Coefficients of customer experience ........................................... 45
Table 4. 16: Model Summary of customer experience ...................................................... 46
Table 4. 17: Analysis of Variance of customer experience ............................................... 46

x
 LIST OF FIGURES
Figure 4. 1: Gender of the respondents ..............................................................................36
Figure 4. 2: Highest Level of Education ............................................................................37

xi
 LIST OF ACRONYMS

BDA Big Data Analysis

BDPA Big Data and Predictive Analytics

GDP Gross Domestic Product

FMCG Fast-Moving Consumer Goods

MNP Mobile Number Portability

NACOSTI National Commission for Science, Technology, and Innovations

PLC public limited company

SCOR Supply Chain Operations Reference

SCM Supply Chain Management

SU Strathmore University

SPSS Statistical Package for Social Scientists

TUK Technical University of Kenya

USA United States of America

xii
 CHAPTER ONE
INTRODUCTION

1.1 Background of the Study

Big data is described as data storage, management, analysis, and visualization of large
and complex sets of data and focuses on data management techniques that supersede
traditional relational systems and are better suited to manage large volumes of data
Bekmamedova and Shanks (2014). Further, (Chi, 2021) characterize data in five “V”
dimensions: volume, velocity, variety, veracity and valorization. Volume refers to the size
of the data collected. Sources of data such as connected smartphones, sensors and other
devices, combined with rapidly developing information and communication technologies
have contributed to the tremendous generation of data. Velocity is characterized by the
high speed of data generation and the timeline within which the data remains useful.
Variety means having data from multiple sources, with different formats, from different
disciplines and several application domains. In agriculture, there is no standard way by
which data is captured and that results to difficulty in harmonization and compilation of
data from the various sources difficult.

Innovation is consistently ranked amongst the top priorities of business executives (Teece
and Leih, 2016). The possibility to utilize big data analytics capabilities to pursue
innovative strategies (Ciampi , 2020; Munir , 2022) is generating radical changes in
business logics in many industries (Wang and Hajli, 2017). To obtain more
knowledge, business model innovation has been included as an outcome of big data
analytics capabilities in our model.

Big Data’ and ‘Big Data Analytics’ have become important globally both in academics
and business; they enable real-time data analysis with minute precision in order to arrive
at key decisions based on evidence rather than intuition. Manyika (2012) defined Big
Data Analytics as “the amount of data just beyond technology's capability to store,
manage, and process efficiently.” According to Hashem (2015) “Big Data Analytics is a
set of techniques and technologies that require new forms of integration to uncover large
hidden values from large datasets that are diverse, complex, and of a massive scale.” In
addition, NIST defines Big Data Analytics as “the data of which the data volume,
acquisition speed, or data representation limits the capacity of using traditional relational
methods to conduct effective analysis or the data which may be effectively processed
1
with important horizontal zoom technologies.” This study looks at Big Data Analytics as
a blend of infrastructure and technology of an organization, which collects stores and
analyses various types of data. Further its additional advantage and biggest value-creation
is in its inherent ability to use advanced analytical techniques, which earlier could not be
processed using the traditional database.

Importantly, Mikalef (2019) have discovered that big data analytics capabilities have
a positive impact on incremental as well as radical innovations. Using big data to
understand customers can generate incremental innovation (Story , 2011). Big data
analytics capabilities can support enterprises in radical innovation, through
development of new products or services which can create new markets or radically
change existing markets (Erevelles, 2016)

Many studies have addressed the technical and operational issues related to Big Data,
including issues such as Creating value from Big Data Analytics(Chen and Zhang 2014),
data processing framework for data storage and analysis (Chen, Chiang and Storey,
2012), issues related to data transformation, data quality/heterogeneity, security, privacy
and legal/regulatory issues (Al- Shomrani, Eassa and Jambi, 2017)Only a few studies
have looked to evaluate Big Data Analytics adoption from an organizational perspective.
Sun et al., (2016) developed a conceptual framework to identify the factor affecting
organizational adoption of Big Data. Their framework is not extensive as the factors are
explored only from a theoretical perspective based on content analysis of IT adoption
literature. Thus, it is amply clear that empirical research is needed for a better explanation
of the adoption of Big Data Analytics at an organizational level. Kwon, Lee and Shin,
2014 developed a research model using the resource view with Isomorphism theories to
explain the intention to adopt Big Data Analytics; the result concluded that data quality
and data usage benefits were the most important indicators for Big Data Analytics
adoption.

The advantages of Big Data Analytics are manifold including better decision making,
better ‘targeted’ marketing, much improved client-based support, direct and stringent
business insights, better planning and forecasting among several others (Wood, 2018)
However, despite having several strategic and operational advantages, it has been
observed that the adoption rate of Big Data Analytics within industries and sectors at
large hasn’t been impressive (Shin 2016). Thus further research is needed in order to
2
understand the inertia coupled with the risk and challenges affecting large scale adoption;
having said that, it’s imperative to note that there’s a lot of research that is on-going in the
technology itself, wherein scholars and exponents of this technology are working together
in order to address some plaguing business related issues of Big Data Analytics (Chen,
Mao and Liu, 2014; Verma, Bhattacharyya and Kumar, 2018). Whilst some studies have
been focusing on the risks and opportunities of adopting Big Data, without getting into
details on the importance and effectiveness of adoption factors, there are others, who are
looking to investigate factors that influence the use of Big Data, whereas research on
factors influencing Big Data Analytics usage and its impacts on service delivery business
is also required.

Big data exhibits four major characteristics namely, volume, velocity, variety and value.
Volume is the huge quantity of data while velocity refers to the mobility of data streams,
on the other hand variety denotes the relational and non-relational data obtained using
different ways; for example when mobile networks are considered we obtain real time
data. Value is the worth of the significance of big data applications; it has a scarceness
value, uncertainty value and diversity (Mo & Li, 2018). Big data evolution and the
Internet of Things (IoT) have taken precedence in many organizations with the intent of
spearheading decision making and enhancing productivity.

Globally, Sudhahar, Veltri, and Cristianini (2015) sought to determine how Automated
analysis of the US presidential elections using Big Data and network analysis can predict
relationships. The study employed a text analysis method. They analyze texts by an
automatic identification of ‘semantic triplets’, formed by key actors, objects and their
relationships. First, we observe that the fundamental split between the Republican and
Democrat camps can be easily detected by network partitioning, which provides a strong
validation check of the approach adopted, as well as a sound way to assign actors and
topics to one of the two camps. Another study conducted in the US shows that big data
and analytics impact above 10% of the growth in 56% of the firms (Hashem &Anuar,
2019). Hashem and Anuar reported that 91% of affluence 1000 companies invest in big
data analytics projects of which 85 % have achieved massive success.

Firms progressively use Big Data Analytics(BDA) for example in search analytics, web
analytics, customer analytics, search engine optimization, customer analytics, as well as
pay per use management in order to customize knowledge of a customer’s lists of sites,
3
product, suppliers, competitors, blogs, retailers, user details and data analytic from or
about those sites (Xu, Frankwick, & Ramirez, 2019). According to Dinh, Phan, & Bui,
(2020) recent studies, have dealt with management of knowledge aspects such as business
analytics, business intelligence, knowledge discovery and data mining. This means they
have focused strongly on the exploration of knowledge, but exclusively not absolutely
supported knowledge exploitation. Often than not, there has been slight effort to assess
the influence of big data on the entire organizational process, knowledge management as
well as service orientation trends.

(Wasike, 2018) conducted a study centered on BDA and operational excellence in SP

practices. The study surveyed respondents of multinational companies in USA, Europe,
Middle East, Australia and Asia. The collected data was analyzed using structural
equation
modelling and findings prove that analytics, Internet of things (IoT), data science, vendor
rating and demand management have effects on supply chain on matters cost saving,
customer satisfaction, operational excellence and bridging communication discrepancies
between supply chain management (SCM) and demand management. The researcher
further asserts that firms which adopt big data technology can accumulate financial gain
and value addition and that soon the industry would adopt BDA as a standard. Through
the study, BDA and SCM are incorporated hence providing a modernistic explanation of
the Supply Chain Operations Reference (SCOR)

In South Africa, the financial sector has also adopted the use of big data to tailor a more
customized experience for customers. South Africa ranked in the top five, out of 138
countries, for financial services meeting business needs, financing through local equity
markets, soundness of banks and regulation of securities exchanges (Schwab, 2017) All
major banks in South Africa, have refocused their efforts into putting in place long term
big data projects aimed at transforming how they do business. (Camarate & Brinckmann,
2017).

In Nigeria, Nwanga, Omwuka and Aibuni (2019) researched on how service to the
customer and earning within Nigeria’s mobile phone industry was impacted by big data
analytics. The researchers found out that real-time analytics provided valuable insights
that the providers relied on to meet individual customer demands, improve profits and
reduce overall operational cost. Results from the study suggest that network facilities
4
providers in Kenya have adopted BDA in their supply chain to a moderate extent with
descriptive analytics adopted the most. Further, it was found that there is a positive
relationship between BDA and SCP though to a very low extent. BDA affects SCP
attributes; reliability, agility and cost by 24.7%, 27.7% and 14.2% respectively. While the
dimensions of BDA were jointly found to be good predictors of reliability and agility,
they were statistically insignificant on cost.

In Kenya, usage of data surged especially during the Covid- 19 pandemic

(Communications Authority of Kenya, 2020). The authority has attributed the progression
to the rising demand for online information. User of information are adopting virtual
meetings and learning using video-conferencing following governments‟ directives for
people to stay home and keep social distancing. Despite the increasing use and generation
of data facilitated by network facilities providers, the huge data has not been given much
attention yet, big data analytics technologies have made it possible to reveal great value
behind such massive data. This study, therefore, seeks to explore the influence of big data
on cost reduction, decision making and customer experience at Airtel Kenya.
Big data analytics has enabled the possibility to generate value from volumes of raw data
allowing organizations to pursue incredible insights for effective decision making and
quality of service. Organizations are however hesitant to adopt big data solutions due to
several barriers including data storing and transmission, data scalability, quality of data,
its complexity, appropriateness, how secure, how private, how much it can be trusted,
data ownership, as well as transparency (Brohi, 2016) Predictive analytics helps to
combine massive data from different sources with the goal of predicting future trends or
events. Predictive analytics evaluates the future, by forecasting trends, by generating
prediction models, and by scoring. Even though predictive analytics cannot predict with
100% certainty, but it helps the companies in estimating future trends for more informed
decision-making (Thillainayagam, 2014).

Research has found that a combination of multiple factors, such as technology, is

important for value generation through data. This means that big data can lead to a
technology orientation. For example, Limbu (2014) have discovered that a
technological orientation can play an important role in the relationship between
technological capabilities and organizational outcomes. Through technology, traditional
business models can be improved, and innovation can be achieved (Wang, 2021). In

5
harmony with this, Ryu and Lee (2018) have found that big data analytics are used by
businesses with a strong technology orientation to support their operations. Similarly,
Mandal (2018) has found that big data analytics capabilities can improve
performance and this relationship is supported by technology orientation.

With its corporate headquarters in New Delhi, India, Bharti Airtel is a multinational
telecommunications services provider from India. A Bharti Airtel subsidiary is Airtel
Kenya. With more than 303 million subscribers spanning 20 Asian and African nations,
Bharti Airtel is currently the third largest mobile service provider in the world. The
company first entered the Kenyan market in 2000 under the brand name Kencell. In 2004,
it changed its name to Celtel Kenya. The Zain firm acquired Celtel Kenya in 2005. Zain
was acquired by Bharti Airtel in June 2010 and given the new name "Airtel Kenya."

As Kenya's most inventive mobile phone service provider, Airtel Kenya takes pride in
this distinction. Its wide range of offerings, which include smart phone products and
applications, Worldwide Prowling, Domestic and Global Messaging Services, a twenty-
four-hour Customer Service Center, Internet connectivity, domain inquests, short
messaging information systems, digital top-up, and Me2U services, serve as proof of this.
In terms of customer numbers, Airtel is Kenya's second-largest mobile phone service
provider, trailing only Safaricom

1.2 Statement of the problem

In the world of competition, change of consumer demand, influence of technology and
globalizations have led to need for better operational strategies. Large and small
organizations in developed and developing countries have embraced big data analytical
capabilities to improve operation agility. Many firms have also adopted BDA to enhance
customer service experience. There are limited studies done in developing countries to
establish the link between big data analytical capabilities and operational agility of big
firms (Wu, Straub & Liang, 2019).

Research conducted by Walker (2019) found that adoption of big data by an

organization is influenced by technological factors, organizational factors and
environmental factors. Some of the technological factors are (1) relative advantage-
benefits of adopting BDA relative to existing technology. (2) complexity- how
difficult the technology is to implement and use, (3) compatibility- how well the
technology fits in with existing needs, practices, and values of the organization, (4)
6
trial ability- the ability to test the technology prior to implementation and adoption
and (5) data quality- the relevance, timelines, accuracy and reliability of the data
collected.

Research shows that adoption of BDA by different industries is on the rise. The Dresner
Advisory Services firm in 2017 conducted a market survey on end-user trends and
intentions on BDA across different organizations globally. According to report,
telecommunications and financial services firms emerged as the leading adopters of BDA.
The study found that 53% of companies have adopted BDA up from 17% in 2015. By
region, North America leads adoption with 55% while EMEA (Europe, the Middle East
and Africa) follows closely with 53%. The Asia-Pacific region took third place with 44%
current adoption (Columbus, 2017)

Lack of ability is cited by Rowe and Pournader (2019) as the fundamental reason for not
applying BDA techniques within the supply chain. Therefore, strengthening of BDA
capabilities is thought of as a critical success factor for competitiveness of any SC (Tiwari
et al, 2018). Communication is also changing among customers; VoIP and internet
messaging are some of the cloud-based technologies that are changing the industry’s
landscape. Customers are becoming more sensitive to quality and on-time delivery thus
the ability to monitor and make real-time decisions on call quality and traffic of data will
give telecoms an edge hence better returns. (Call Centre Helper, 2020). However,
according to Business Daily (2020) appreciation of big data analytics in Kenya is very
low and its acceptance into business strategy is wanting since many of the companies are
finding it a challenge to convert big data into meaningful insights and have little or no
idea on the value they can derive from the insights.

Several research have been conducted on big data analytics and performance. Globally,
Nwanga, Omwuka and Aibuni (2015) researched on how service to the customer and
earning within Nigeria’s mobile phone industry was impacted by big data analytics. The
researchers found out that real-time analytics provided valuable insights that the providers
relied on to meet individual customer demands, improve profits and reduce overall
operational cost. Gunasekaran, Papadopoulos, Dubey, Wamba, Childe, Hazen and Akter
(2017) researched adaptation of big data and predictive analytics (BDPA) on organization
performance (OP) and SCP of technology and e-commerce firms, consulting firms and

7
manufacturing companies in Pune, Hyderabad and Bangalore cities of India. The
researchers‟
findings were that BDPA has potential to significantly reduce costs of running supply
chain, improved agility, enhanced supplier relations, higher sales and planning capacity.

Locally, Mugane (2018) reached the findings that the number of financial institutions
effectively using BDA was still small (23%).The most popular big data technologies used
by financial institutions were in-memory databases, artificial intelligence and prescriptive
analytics. Overall, adoption of BDA was found to lead to competitive advantage of banks
and fintech companies. Kibe, Kwanya and Owano (2020) researched the impact of BDA
on OP of Strathmore University (SU) and Technical University of Kenya (TUK) and
revealed that BDA was positively correlated with innovativeness, productiveness,
efficiency, creativeness and effectiveness in both institutions.

From the studies reviewed above, big data analytics methods have not been projected
systematically and sequentially. Additionally, there is no research found in Kenya which
has explored on the influence of big data analytics on innovation in the service sector in
Kenya therefore this study focused on the influence of big data on cost reduction,
decision making and customer experience at Airtel Kenya.

1.3 Purpose of the Study

The purpose of this study is to investigate the influence of big data on cost reduction,
decision making and customer experience at Airtel Kenya.
1.4 Research Questions

The study seeks to answers the following questions:

1.4.1 To what extent does big data analytics influence cost reduction at Airtel Kenya?

1.4.2 How does big data influence decision making at Airtel Kenya?

1.4.3 How does big data analytics influence customer experience at Airtel Kenya?

1.5 Significance of the Study

This study is expected to benefit various stakeholders as discussed in the subsections that
follow:

8
1.5.1 Decision Makers in Business

This study will help key decision makers of organizations to determine the
appropriateness of application of Big Data and in the designing of new products,
marketing communication strategies and to enhance customer relationship
management.

1.5.2 Researchers

As Big data is yet to be widely embraced and applied in Kenya due to the knowledge
gap that exists. This study will help in creating some insights that can be used by
other researchers to further research in this area to build a wider knowledge base of
this area.

1.5.3 Consumers in the Market

This study aims to review how businesses utilize big data to innovate in their
products and services and processes. This goes a long way in enabling them serve
customers better by being in a position to better understand, anticipate and meet their
needs. It will help them know which products to develop, when to do so and who to
target in their campaigns resulting in an enhanced customer experience.

1.5.4 Shareholders of the business

Through the application of big data in business innovation, the shareholders

benefited from improved profitability and thus a higher return on investment.

1.5.5 Employees

Employees of organizations that make the decision to employ big data to innovate
benefited from new and improved ways to perform their duties.

1.6 Scope of the Study

The purpose of this study is to investigate the influence of big data on cost reduction,
decision making and customer experience at Airtel Kenya. The study sought to answer
the following research questions: To what extent does big data analytics influence cost
reduction at Airtel Kenya? How does big data influence decision-making at Airtel Kenya
and how does big data analytics influence customer experience at Airtel Kenya. This
study employed descriptive research design. The target populations of this study are 1000

9
employees at Airtel Limited. This included 18 member of senior leadership, 35 middle
level managers and 947 general employees. The study was conducted between January to
August 2023.

1.7 Definition of Terms

1.7.1 Digital Transformation

“Digital transformation is the process of using digital technologies to create new or

modify existing business processes, culture, and customer experiences to meet
changing business and market requirements” (Soen, 2017)

1.7.2 Big Data

Big data refers to data sets whose size is beyond the ability of typical database
software tools to capture, store, manage and analyze (McAfee, 2012).

1.7.3 Data Analysis

Data analysis is a process of inspecting, cleansing, transforming, and modeling data

with the goal of discovering useful information, informing conclusions, and
supporting decision-making. (Ciampi, 2021)

1.7.4 Data Mining

Data mining is defined as a process used to extract usable data from a larger set of
any raw data. It implies analyzing data patterns in large batches of data using one or
more software (The Economic Times, n.d., para 1)

1.7.5 Service Sector

The services sector consists of wholesale and retail trade and restaurants and hotels;
transport, storage, and communications; financing, insurance, real estate, and
business services; and community, social, and personal services (Aizenman,2013)

1.8 Chapter Summary

The chapter reviews the research introduction part. The sections discussed in the
introduction are background of the study, statement of the problem, purpose of the study,
research questions, significance of the study, study scope and defining of key terms.
Chapter two covers the literature review on influence of big data analytics on innovation
in the service sector in Kenya Chapter three, research methodology, covers research
10
design, population and sampling design, data collection methods, data collection
procedure and data analysis method. The chapter has presented the results and findings of
the study; there has been a degree of variance between the dependent and independent
variables. Chapter five which succeeds this chapter presents the discussion, conclusions,
and recommendations to the policy makers.

11
 CHAPTER TWO
2.0 LITERATURE REVIEW

2.1 Introduction
This chapter focuses on influence of big data analytics on innovation in the service sector
in Kenya a case study of Airtel Limited. The study is anchored on three research
questions: The first one is how big data analytics influence decision-making at Airtel
Limited? The second one how data analytics influence decision-making at Airtel
Limited? The last one how big data analytics influences customer experience at Airtel
Limited.

2.2 Influence of big data analytics on cost reduction

`Globally it is found that big data analytics would not only improve the business
performance and data management but also increase the revenue and decrease the
operational costs (Verma & Bahttacharyya, 2019). Big data technologies such as Hadoop
and cloud-based analytics bring significant cost advantages when it comes to storing large
amounts of data and they can identify more efficient ways of doing business (Liu, 2019).
Therefore, the dimensions that can be used in measuring this variable are whether BDA
tools able to help organizations to reduce volume of data to store, find and reduce
operational inefficiencies.

In addition, big data can be used to automate and streamline the purchasing and
procurement process. For example, businesses can use big data to automate and optimize
the order placement process, which can reduce the time and effort required to complete
the process (AlNuaimi,2021). This can help to reduce costs and improve efficiency. Big
data also helps businesses and organizations to reduce their costs. By collecting and
analyzing data from multiple sources, companies can identify the most cost-effective
suppliers, which can help reduce costs. They can also track customer preferences and
trends, which can help them identify which products to purchase (Gholizadeh,2020). In
addition, companies can use big data to automate and optimize the order placement
process, which can reduce the time and effort required to complete the process. This can
help to reduce costs and improve efficiency.

The Nigeria telecommunication industry is an extremely competitive sector. According to

Nwakanma et al., (2018) indicates that Nigeria has amongst the largest
telecommunication sectors across the globe. The country was estimated to have 149.2
12
million subscribers and contributed 9.1% of the country’s GDP. The sector faces
challenging firm performance due to high competition amongst the players and
introduction of Mobile Number Portability (MNP). These factors have impacted on the
telecommunication industry firm performance as measured using service quality, network
coverage, and prices for the provided services.

Kosior, (2018)conducted a study on digital transformation in the agro-food sector through

reviewing literature and collection of use cases deployed in agribusiness in selected
research projects and further confirmed that Big Data helped farmers to reduce cost of
input, improve yield and profitability. Farmers also benefitted by having access to
detailed weather forecast, predictions on pest infestations and fungus and this helped
them to solve problems in the farm on time. The study revealed that farmers were
supported in multiple stages of the production cycle starting from preparation of fields,
planting, care of crops, harvesting, drying and monitoring and control. Further, a study of
the grain industry in Australia outlined the benefits of application of big data in
agriculture and considered this one of the most important developments in this industry.

The influence that big data and AI will have on life insurance underwriting was
investigated by Burke (2021). Interviews with qualified witnesses were done in a semi-
structured format for the purpose of this study. It was decided to take a representative
sample of management-level personnel from a wide range of business operations within
the industry. These activities included actuarial work, machine learning, data analytics,
legal work, and data science. Throughout total, eight interviews with subject matter
experts took held in the month of March 2019. The results of the investigation were
examined using a technique called thematic content analysis. Throughout the course of
this research, a number of important findings emerged. It has been demonstrated and
validated that the utilization of accelerated underwriting as well as wearable technology
has the ability to bring about considerable performance gains to the operations of life
insurance companies. According to the findings of the study, two of the primary factors
contributing to this spread are falling prices and rising profits.

In Somalia, Mohamed (2018) noted that the telecommunication industry in the country is
extremely competitive. This is due to the high number of telecommunication sector
players with the country having six main mobile service providers including Hormuud
Telecom, Telecom Somalia, Telesom, Somafone, Nationlink, and Golis Telecom
13
(Mohamed, 2018). The many players in the telecommunication sector in Somalia led to
the price wars in the sector leading to the lower financial performance of the sector.
Amongst the competitive strategies that the telecommunication sector engaged in
included cost leadership strategy, differentiation strategy and focus strategy (Mohamed,
2018)

Locally according to a PwC research published in 2017, adoption of open-source software

is proliferating across industries. 48% of the financial services firms in Kenya take
advantage of open-source software in developing affordable IT services and improve the
infrastructure scalability. It was a bit eye-opening, however, to find that 45% of those
who uses open-source technologies confirm that it has enhanced their cyber security
posture. Over a third of financial services firms said they plan to invest in open-source
software solutions over the next 12 months (PwC, 2017)

Mohamed and Gichinga (2018) noted that amongst the aspects that were considered in
Somalia included low prices for services, production cost, develop new products,
reduction of operations costs and economies of scale. Similar to Abdi and Sasaka (2017),
Mohamed and Gichinga (2018) examined firm performance in the telecommunication
sector in terms of customer satisfaction, customer retention, customer loyalty, operational
efficiency, and company profitability aspects. Olu-Egbuniwe and Maeyouf (2019)
indicates that the firm performance of telecommunication industry was of importance in
Libya. In Rwanda, there is a nascent telecommunication sector in the country with four
telecommunication players that is Tigo, MTN Rwanda, Rwandatel and Airtel Rwanda
enjoy diverse firm performance in terms of market share, profitability and provision of
innovative products (Kule, Ntawiha,& Zenom, 2016).

Baroto, Madi and Abdullah (2017) carried out a study to examine among other factors the
effect of cost leadership in performance of telecommunication firms in Kenya. The study
established that the telecommunications firms engaged in vigorous pursuit of cost
reductions, tight cost and overhead control and cost minimization in areas such as sales
force, and advertising. The study concluded that cost strategy was related to the long-
term performance of organization in the telecommunication industry. Mutisya (2013) in a
study on competitive strategies adopted by telephony companies in Kenya observed that
cost leadership was a determinant of performance the firms and there for consistent with
the findings by Baroto et al., (2017).
14
Rotich and Anyango (2018) in a study on competitive strategies adopted by Airtel
Limited Company to gain competitive advantage concluded that cost leadership though
reduction of operational costs affected the level of performance of the company. These
findings are consistent with the findings by Kyengo (2016) who noted that cost leadership
in terms of low-cost manufacturing, process innovations, economics of scale and low
learning curve benefits resulted into improved performance of firms in
telecommunication industry. The study recommended the telecommunications firms in
Kenya to continuously keep evaluating their cost leadership since the market is highly
dynamic.

Bagale et al (2021) within the study on SMEs in India suggest that BDA can assist in
times of crisis management, for example BDA allowed for the COVID-19 pandemic to be
monitored in real time. A study conducted by Nayak (2021) found that the potential of
BDA and associated Industry 4.0 technologies which can assist in lowering operational
cost and standardizing processes in the health insurance firms would benefit these
organizations. Drydakis (2022) further suggest that AI advances BDA collection and
processing, analysis, drives conclusions and provides recommendations.

Big data uses innovative and cost-efficient technologies to solve problems through
computing environments (Nda & Hamid, 2020). This explosion of data has driven
organizations to look into information processing and analysis. Al-Sai, Abdullah and
Husin (2019) indicate that an organizations’ ability to be competitive depends on its level
of big data maturity. While it is well understood that big data analytics has an enormous
potential to generate value for business organizations, there is still vagueness around the
exploitation of value from big data and in particular big data analytic maturity is still an
unanswered question (Comuzzi & Patel, 2016).

2.3 Influence of big data analytics on decision-making

Decision making has been defined by decision-makers' intuition and experience, but it
can progress to better-informed decisions when integrated with data-driven decision-
making (Anderson, 2015; El Houari, Rhanoui, & El Asri, 2015; Schoemaker et al., 2018)
Globally Rousseaux (2017) proposes that using big data-driven predictive analytic in
knowledge collection can very creative, with BDA accuracy is no more only parameter
for knowledge improvement. Big data analytics are already adding and progressing
knowledge in many fields of research, big data is assisting in measuring economic effects
15
and outcomes. Many large commerce companies have employed combined resources of
(economists with statisticians and computer scientists) in online marking (Lugmayr,
Stockleben, Scheib, & Mailaparampil, 2017)

Big data is enabling businesses and organizations to make more informed decisions when
it comes to purchasing and procurement. By gathering and analyzing data from multiple
sources, companies are able to make better decisions about which suppliers to use, when
to buy and which products to purchase (Sundarakani,2021). For example, businesses can
use big data to identify the most cost-effective suppliers, which can help reduce costs.
They also use it to track customer preferences and trends, which can help them identify
which products to purchase. This data can also be used to determine which products are in
demand and which are not, allowing businesses to make more informed decisions about
which products to purchase (Moretto,2017). Big data is also helping businesses and
organizations to become more efficient in their purchasing and procurement processes.
By collecting and analyzing data from multiple sources, companies can identify the most
cost-effective suppliers, which can help reduce costs. They can also track customer
preferences and trends, which can help them identify which products to purchase.

GalbRaith, (2018) discusses the issues that come with a shift of power as well as real-time
decision making, and then describes how Nike Shoe Company came up with a digital
sports division to take advantage of big data to build a completely new income stream. He
then uses the Star Model™ framework to assess the impact of big data to an organizations
design. In this research challenges of big data are examined not only in the technical
aspect but also in the organizational aspect and the need for shifting power from
experienced and critical decision makers to data driven decision makers. For success, the
organization requires to perform a shift in power to data specialists who create fresh
perceptions from big data (GalbRaith, J. R., 2018)

Pijnenburg, Kowalczyk and Hel-van Dijk (2017) did a study that explored the practicality
of data analytics in supervision of taxpayer in The Netherlands, and in detail examining
how it contributes to compliance risk management. This study was conducted through a
case study of the Netherlands Tax and Customs Administration. From the study findings,
they concluded that the basics for tax compliance risk management could be improved
through data analytics, which leads to management of a tax administration making more
rational decision.
16
Chaudhuri R., Chatterjee S., Vrontis, D. & Thrassou A. (2021) researched on the adoption
of robust business analytics for product innovation and organizational performance. A set
of hypotheses are developed and validated statistically based on the responses of 513
employees. The findings of the study are that a business analytics has a notable impact on
product innovation and process improvement which results in business value through
improved organizational performance

A technology evaluation using Satellite Big Data Analytics was carried out by Nagendra
et al. (2022) for the Agri-Insurance sector of India. They present a case study on the
assessment of using satellite big data as a technology deployed in Northern India to solve
the afore-mentioned problems between the stakeholders in the agri-insurance claim
settlement process in this article. The technology was deployed in order to solve the
problems between the stakeholders in the agri-insurance claim settlement process. Agri-
insurers are able to conduct an assessment for the purpose of calculating the indemnity
payments by using satellite big data-based analytics because it provides an independent
data source and decision-making platform. The findings demonstrate how the increased
transparency made possible by satellite big data analytics helps to prevent the plausible
exploitation of the claim settlement process and ultimately results in increased efficiency
and effectiveness in the process of settling farmer claims.

A study that was conducted by Senousy, Mohamed, and Riad (2018) on recent trends in
big data analytics towards more improved insurance business models was presented. In
this piece of research, the authors examine the benefits that big data technology offers in
comparison to the requirements for data processing and decision-making in the insurance
industry. A case study analysis that centers on the most important applications of big data
in the insurance industry is also presented here. The paper also provides an overview of
the most important big data technologies and tools from the point of view of the insurance
industry. The report also gave some analytical review that validated a number of obtained
benefits by the insurance businesses. These benefits included the effective processing of
vast different data sets as well as the backing of better decision making. This article
provides a comprehensive assessment of the top seven use cases of big data in insurance,
as well as justifications for the use of each use case and the value that it adds. In addition
to this, it provided an overview of the most modern big data technologies and tools, with

17
a particular emphasis on the fundamental concepts behind them and the recommended
applications of each, illustrated with examples from the insurance business.

This data can also be used to determine which products are in demand and which are not,
allowing businesses to make more informed decisions about which products to purchase.
Big data analytics allows business analysts and researchers to make fact-based decisions
by using data which was previously unusable or inaccessible. Some of the techniques
used to unearth value from this data include predictive analytics, machine learning, text
analytics and natural language processing. Analysts can use this data either independently
or in combination with their organizational data to help them arrive at new insights that
are used to make better decisions (IBM, 2018). The use of data to make decisions
therefore eliminates the risk of using intuition or gut feeling to make wrong decisions
which can be very expensive for a business

Govindaluri (2020) have developed a hybrid multi‐attribute decision‐making procedure

that can be utilized in ranking project proposals to use historical project data and reduce
the problems associated with predicting project performance, such as cost and schedule
overruns. Previous research studies also suggested that efficient and effective use of big
data sets affects the quality of decisions taken in projects (Kościelniak and Puto, 2015).
However, despite these studies on the influence of decision-making and big data on
projects in the extant literature, there are still ambiguities in the literature on whether big
data and big data analytics can eventually lead to enhancing the success rate of projects
(Narayan and Tan, 2019). Thus, there is a need to further explore the linkage between big
data analytics and project success by investigating whether big data impacts the decision-
making ability of project managers (Papadaki et al., 2019, Thirathon et al., 2017, Wang et
al., 2020). This leads to the identification of a gap in the knowledge base on whether there
is a relationship between big data analytics and project success. There is also a need to
understand the role of decision-making in this context and how decision-making impacts
the processing of big data in the project environment (Miller, 2018).

In their study (Jakku, 2018),showed that big data had the potential to transform Australian
agriculture through improving decision making in the farm as well as the broader industry
level, analysis and prediction that leads to increase efficiency in farm management, which
in turn helped the agricultural industry to overcome challenges in productivity and
sustainability. Further in their findings, they reported that farmers noted an increase in
18
production and thus an increase in profits as well as an improvement in farm management
and decision making. Along the supply chain the study further identified that Big Data
enabled optimization and improved decision making at the industry level.

Also, other scholars (Li & Xu, 2018) state that, for the purpose of their effectiveness,
technologies, with particular reference to corporate information systems, should be
congruent with the objectives pursued by companies, effectively manageable and
controllable by managers, to influence the behavior of the organization and provide
timely, accurate, and cost-effective information. Consistently, Duan et al. (2019) argue
that big data and artificial intelligence techniques, if used correctly, can contribute in a
decisive way to the improvement of organizational learning, impacting, and, ultimately,
on the effectiveness of decision-making systems

Florian (2018) analyzed the role of procurement in supply chain management and how
digitalization has affected that process. The core data for this study was gathered using a
quantitative strategy and an online survey. A total of 414 people from a wide range of
organizations and sectors provided usable data about procurement and related business
functions. The study found out that digitalizing the procurement process can help in a
number of ways. For example, it can help with day-to-day business and administrative
tasks, it can help with complex decision- making processes, it can help procurement
become more focused on strategic decisions and activities, it can help procurement
become a strategic interface to help organizations increase their efficiency, effectiveness
and profitability.

An investigative study by Galletti and Papadimitriou (2018) on how big data analytics
(BDA) can be seen as the major driver of operational capability in many large firms. The
authors assert that implementation of big data analytics at its infant stage can enhance
task delivery, especially in shortening decision-making phases. The study acknowledges
that there are hurdles in implementing big data analytics, thus delaying the course of task
completions. Since big data technologies cannot operate alone, skilled operators are
needed to make the progress anticipated while embracing big data analytics. The
mandate, capability, knowledge and the expertise of the staff engaged in handling big
data should also be key components of executing tasks using big data analytics. The study
had limitations which included the limited number of interviews to represent the entire

19
organization, and that the firms having BDA are still few in their early phases of the
process

According to Kiron (2017), many organizations struggle to incorporate data into their
everyday decision-making. This is mainly because managers are unwilling to
change their decision-making process since they are so accustomed to act on expertise,
intuition, and gut feeling. In a data-driven culture, expertise, intuition, and gut-feeling
must
go hand in hand with technological assets. Being truly data-driven is not only about
having
the right technology, but also about the mindset of all employees (Kiron, 2017; Mitzner,
2016). The vision of being data-driven must be explicitly stated from the senior
management.
Without their support, middle-managers and frontline personnel will not embrace and
fulfil
the use of analytics since their roles and responsibilities will change. Phillips-Wren and
Hoskinsson (2015) support this by arguing that a data-driven organization has achieved
alignment between business strategy and data-driven decision-making. Such
organizations
also treat data as a core asset (Kiron, 2017)

In Kenya In the study of Nithya and Kiruthika (2021), the researchers tried to measure the
impact of business intelligence on the performance of financial organizations (banks), the
study reviewed the previous literature, and came to the conclusion that the big data that is
processed through business intelligence approaches would enhance the foundations of
performance management by providing processed and reliable information that is able to
analyze the business environment, clarify the relationship between the bank and
customers, in addition to facilitating access to sound decision making foundations that
lead performance towards excel

Ndambo (2019) focused on big data as well as competitive advantage in insurance

companies as well as banks in Nairobi, Kenya. He sought to establish the extent to which
big data analytics was being used in this fields, determine the association of big data
analytics and competitive advantage and establish the challenges of big data analytics in
commercial Banks and insurance companies in Nairobi. A descriptive survey was
20
employed for the purpose of data collection, and it targeted commercial banks and
insurance companies in Nairobi, Kenya. Out of the 42 Commercial banks and 49
insurance companies in Nairobi, a sample of 20 Commercial banks and 25 insurance
companies were undertaken. The assumption was that the companies’ used big data
analytics. Data collection was done through structured questionnaires after which it was
analyzed using percentages, frequencies, mean, as well as standard deviation and
regression techniques. Findings were that companies in the financial industry specifically
commercial banks and insurance firms had invested in data storage facilities and
advanced tools in the area of business intelligence for reporting and analyzing consumer/
client behavior. These allowed the companies to anticipate consumer needs more
effectively, in addition to optimizing their operations.

Karuga (2019) study pursued to examine the extent by which telecoms,

telecommunication service providers, Information Communication Technology
companies and service providers and a major institute of higher learning in Kenya had
adopted big data analytics, the factors which influenced adoption process and the
suitability of the model used to establish this adoption in their operations. The study
employed a descriptive research design and semi structured questionnaires were used to
collect data. Multivariate regression was applied to find out the significantly the
independent variables affected adoption of BDA to drive decision making. The study
found that BDA had been adopted to a great extent by these companies. Organizations
used business intelligence and BDPA in their operations. The adoption of big data
analytics was influenced by TOE factors. The degree of compatibility of big data
analytics to the existing IT systems, top management support, size and structure of the
organization and the intensity of the competition were identified as the factors with
highest significant effect on BDA assimilation.

Wangari (2019) conducted a study to determine decision making capacities through

hedging on BDA. The study employed descriptive research design and the data was
collected from firms in telecommunication industry. A semi structured questionnaire was
used to collect primary data which was analyzed by Statistical Package for the Social
Science (SPSS). Application of multiple linear regressions was done. Technological,
environmental, and organizational factors were found to have a high significant effect on
the adoption of big data analytics.

21
Big Data analytics (BDA) and technology can promote data collection from multiple
sources, the ability to comprehensively analyze data and provide real time decision
making based on the data analysis results (Koh et al., 2019). Big data is a notion that
applies to enormous, diversified and complicated data points that influence a choice and
strategy as well as the organizational decision structure of the company’s plan (Srivastava
et al., 2021). Onu and Mbohwa (2021) suggest that BDA is more focused on what will
happen rather that what has happened and act as a prediction of the future possibilities or
unknown events. Talwar et al (2021) proposes that BDA can assist organizations in
improving operational performance by optimizing supply chain costs, reduce logistics
service costs, support information sharing and transparency in communication which
could lead to competitive advantage.

Big data analytics has enabled the possibility to generate value from volumes of raw data
allowing organizations to pursue incredible insights for effective decision making and
quality of service. Organizations are however hesitant to adopt big data solutions due to
several barriers including data storing and transmission, data scalability, quality of data,
its complexity, appropriateness, how secure, how private, how much it can be trusted,
data ownership, as well as transparency (Brohi, 2016)

This study addresses a number of gaps in the existing literature. Although the existing
literature has identified the influencers of big data decision-making quality, it has not
answered the question of how firms can enhance their big data decision-making
capabilities. The existing literature has not answered how, in the context of big data
decision making, DCs can be influenced by managerial factors (e.g., Martin & Bachrach,
2018). Furthermore, the existing research has limited itself to the construction and
investigation of big data analytics capability constructs, and sparse research has been
conducted on broader concepts like big data decision-making and management
capabilities, in general. The antecedents of big data decision-making capabilities need to
be investigated because big data decision-making quality depends not only on data quality
but also on a number of other key factors such as talent management, leadership and
organizational culture involved in the process.

2.4 Influence of big data analytics on customer experience

Big data analytics (BDA) is becoming a strategic tool to harness data to achieve business
efficiencies. While business-to-customer organizations have adopted BDA, its adoption in
22
business-to-business (B2B) has been slow, raising concerns about the lack of
understanding of the need to adopt BDA. Little knowledge exists on the subject and the
purpose of this study is to examine BDA adoption needs among B2B organizations (Ram
and Zhang, 2022). According to Teece and Leih (2016), effective CVM reduces
uncertainty in the market as products and services that are on-demand are the ones
produced. In established markets, a lot of organizations have decided to differentiate by
creating methods of discovering the value in their customers. This segmentation is useful
in the MNO industry as markets are saturated and face fierce competition from
competitors, both established and upcoming (Teece & Leih, 2016).

Globally Akter & Wamba, (2018) examined that big data and business analytics are
advanced technologies that help the retail sector firms to provide personalized customer
experience by predicting their preferences and choices. Big data provides relevant
customer information by analyzing the past purchasing statics, browsing behavior, and
credit card transactions. It helps in acquiring relevant consumer information and
forecasting customer spending. For example, big data and business analytics provide
merchandise suggestions based on past customer purchases to Amazon which helped it to
enhance sales of the company by 29%. On the other hand, Costco, a California based
company uses big data and business analytics to provide health information to customers
and keep them healthy. Additionally, brands such as Walgreens and Pantene have
collaborated with weather foresting channels to acquire relevant information about
weather forecasts. It helps the companies to promote their products to the consumers as
per weather alteration. As a result, Walgreens recorded an increase of 4% in sales in the
hair care segment and Pantene recorded an increase of 10% of sales in two months.

Capgemini Consulting (2019) conducted a study on how banks can gain by analyzing
their customers’ data across North America. Findings of the study showed that 60 percent
of
financial institutions surveyed believed that data analytics offered significant competitive
advantage. Over 70 percent of the banking executives agreed that customer centricity was
important to them and were relying on big data to achieve it. In sharp contrast, only 37 %
of customers believed banks understood them. The study also found that only 37 % of
commercial banks have practical experience in implementing big data technologies and
that the most of them were still at the piloting stage.

23
A study was carried on the interdependences and contextual factors that affect adoption of
big data analytics in Germany amongst 138 companies (Schüll & Maslan, 2018). It was
based on the technology, organization and environment framework. The main objective
of the research was to establish the factors that influenced BDA adoption. The study
found that technology was not amongst the most important internal factors that influenced
adoption. However, BDA skills and internal data usage were the most influential factors.
Other factors that were found to be significant were environmental factors such as
competition and market pressure. However, the study found no link between BDA
adoption and firm performance which could be explained by recency of BDA
investments. The study suggests that a study is carried over time to establish the influence
of BDA on firm performance.

According to Singla et al. (2017), consumers give high importance to the advantages
realized from giving away personal data as compared to the privacy itself. It was also
noticed that consumers would happily exchange information if they were likely to obtain
personal benefits that may have a role in their consumer experience. The Cambridge
Analytical case is a recent happening, due to which consumers have become cautious and
anxious. Consequently, public awareness regarding collecting and using personal data has
increased (Isaak & Hanna, 2018). Due to a lack of knowledge about constantly evolving
AI data-driven technologies, it can be claimed that consumers are still oblivious of data
privacy concerns.

In 2017, the value of Fast-Moving Consumer Goods (FMCG) market in Thailand about
4.42 hundred thousand baht that it was worst during last 10 year (-0.4%), however data
science teams predict its value will be better 3% in 2018 (Positioningmag, 2018). This
economy situation can be another cause to motivate entrepreneurs concern and adjust
their business for surviving with data analysis. Furthermore, the approach is a broader
undertaking that consumer loyalty is decreasing continuously. It is the fact that consumer
has many alternatives when he decides to buy or not buy any brand. The purpose of this
paper is to study marketing analysis in term of location based has influenced consumer
behavior in local convenient store with data analysis.

A systematic literature analysis on the use of big data in healthcare was carried out by
Senthilkumar et al. (2018). The review focused on publications published between 2010
and 2015. The study provided an overview of the definition, process, and applications of
24
big data in medical administration. The growth of unstructured data is significantly
outpacing that of both semi- structured and structured data. Data collecting, data storage,
data administration, data analysis on data, and data visualization are the primary steps of
big data management in the healthcare business. Ninety percent of big data is in the form
of unstructured data. Recent research has focused on various tools for visualizing large
amounts of data. The authors of this research conducted an analysis of the effective tools
now being used for the visualization of large amounts of data and made suggestions for
new visualization tools that may be utilized to better manage large amounts of data in the
healthcare business. According to the findings of the study, the most difficult aspects of
using big data in healthcare are understanding unstructured clinical notes in the
appropriate context and gleaning potentially useful information from them.

Sharma et al., (2019) examined that due to the adoption of business analytics, the firm
enhances its capabilities and creates appropriate business outcomes. The application of
business analytics in the retail sector helps in carrying out order management processes,
inventory management, and creating payment gateways. It also systemizes the supply
chain process and enhances customer relationship management attributes of the firm. For
example, business analytics is used by mega malls and outlets that assess the mega
datasets developed by them based on supplier data, in-store sales data, campaigning data,
in-store data, and e-commerce data. Business analytics helps in assessing these databases
with the help of customer profile analysis, market analysis, sales analysis, price analysis,
and inventory analysis. It helps in gaining a better understanding of the transformational
process in which business analytics converts information into knowledge, and knowledge
into the value. It facilitates company functionaries and enhances their abilities to serve the
customers adequately.

Caseiro and Coelho (2019) proposed in their study a model to determine the impact of
business intelligence on performance and the indirect effects of business intelligence such
as learning and innovation. (228) start-up companies were selected in several European
countries, and based on structural equation modeling, the study came to the conclusion
that there are positive effects of business intelligence and its capabilities on the
performance of organizations by stimulating network learning and innovation, which
leads to better performance, and network learning resulting from business intelligence
was one of the most impactful results on performance.

25
A study by Arora and Rahman (2020) regarding the study of big data analytics for
competitive advantage observed that there was likelihood of creating significant
opportunities in meeting customers’‟ expectations. Through identifying tasks which can
be implemented by use of big data analytics, it becomes possible to select the strategies
that have better operational performance than others. Their study proposed a theoretical
model on how big data can be applied to enhance performance of companies, arguing that
big data on its own cannot confer competitive advantage to any firm. The study by Arora
and Rahman further noted that competitive advantage through task capabilities was
through identifying ways in which big data should be handled to complement other firm
assets.

In Africa According to Ghani et al. (2020), brand authenticity is a strategic imperative

known for achieving significant results for a business. It examines customer perception
toward marketing for a fast-moving process of customer goods or services. The use of
advertising, social media, sponsorship, and corporate social responsibility to promote the
authenticity of products or services to achieve the company's mission is referred to as
brand authenticity. Social media is a type of brand marketing communication used to
determine the effectiveness of brand authenticity. Brand authenticity is one of the most
effective online communication channels for spreading information The concept of
extracting value from these huge data sets in order to unlock the transformative potential
of Big Data analytics is limited (CGIAR, 2018). The use of Big Data analytics stands
poised to be the next great revolution of agriculture, with the potential to help producers
of all sizes and enterprises produce more with less (Boettiger, Sara; Denis, Nicolas;
Sanghvi, 2019)

Big data analytics has enabled the possibility to generate value from volumes of raw data
allowing organizations to pursue incredible insights for effective decision making and
quality of service. Organizations are however hesitant to adopt big data solutions due to
several barriers including data storing and transmission, data scalability, quality of data,
its complexity, appropriateness, how secure, how private, how much it can be trusted,
data ownership, as well as transparency (Brohi et al., 2019)

Mugane (2019) conducted a study whose objectives were to determine the degree to
which big data analytics assimilation amongst banks and fintech companies in Kenya, to
establish the association between the adoption of BDA and competitive advantage and
26
finally to establish the challenges and opportunities of adopting BDA. Descriptive
research design was used. The population consisted of 42 commercial banks and 38
fintech companies in Kenya amongst whom a census survey was done. Data was captured
using questionnaires and analysis was performed using means, frequencies, standard
deviation and regression analysis. Multivariate regression technique was used to ascertain
the nature of association between the adoption of BDA while 23.1% were effectively
using the technology. The rest of the organizations were either planning to adopt or
testing their data models. The study found that adoption of big data analytics leads to
significant achievement of competitive advantage. It had also enabled the organizations
that were effectively using BDA to come up with new products and enter new markets. It
was also found that the organizations studied faced various challenges in the adoption of
BDA, some of which were integration of legacy systems with new technologies and poor
quality of data. Adoption of BDA presented the organization various opportunities which
could be exploited some of which were improving customer service, fact-based decision
making and operations management.

According to the Boston Consulting Group (Gerbert et al. 2016), data analytics is
expected to transform firm CRM strategy in all key areas encompassing marketing
effectiveness, pricing and revenue management, segmentation and personalization,
customer lifecycle assessment, and customer loyalty and churn analysis. Unlike
traditional CRM systems, big data technologies enable firms to collect and analyze
unfiltered customer opinions, understand customer attitudes and behaviors, and engage in
a two-way dialogue with their customers (Day, 2021). Benitez et al. (2019) demonstrated
ways in which firms use IT-enabled OTAs to achieve an advantage by strengthening
organizational capabilities, while Mikalef, Boura, et al. (Citation2019) and Conboy et al.
(Citation2020) both proposed research models that elucidate the ways in which the
adoption of big data analytics provides firms with dynamic marketing and technological
capabilities and thereby improves the competitive performance of OTAs. However, a
recent study noted that the potential of big data-related studies on OTAs in the tourism
and hospitality sector has been insufficiently researched, underscoring the need for the
present study (Nusair, Butt, and Nikhashemi Citation 2019).

Big data analytics is considered a key differentiator between firms that perform well and
those that underperform (Mikalef 2020), especially since it improves efficiency and

27
effectiveness, because of its high operational and strategic potential (Wamba, 2017).
Studies such as those conducted by (Hung, 2006; Tsai et al., 2015; Vidgen et al., 2017;
Wamba et al., 2017), show that the use of big data analytics as dynamic capability enables
managers, statisticians, trend analysts, among other professionals, to systematically
analyse rapidly incoming data. Capabilities “facilitate the most efficient, effective, and
competitive use of an organization’s assets, whether tangible or intangible” (Mikalef et
al., 2020). The study further indicates that capabilities operate differently from
organization to organization; hence, they result in varying levels of sustainable
competitive advantage. However, from this definition, it is apparent that dynamic
capabilities are needed to create value

2.5 Chapter Summary

This chapter presents relevant literature on influence of big data analytics on innovation
in the service sector in Kenya a case study of Airtel Limitedcompany. The study research
questions are: to what extent does big data analytics influence cost reduction at Airtel
Limited company? Does big data analytics influence decision-making at Airtel Limited
company and how and does big data analytics influence customer needs at Airtel Limited
company?Chapter three will contain research design, population and sampling design;
data collection methods, research procedure and data analysis methods.

28
 CHAPTER THREE
3.0 RESEARCH METHODLOGY

3.1 Introduction
In this chapter, the research methodology is presented. The methodology identifies the
specific procedures and techniques that were used to identify, select, process, and analyze
information about the research topic. Therefore, the study research design, population and
sampling design, data collection methods, research procedure and data analysis methods
are detailed here.

3.2 Research Design

The research design refers to the overall strategy that a given study intends to use in
collecting, analyzing, and interpreting data (De Vaus, 2011). This study employed
descriptive research design. This design is concerned with examining the status of the
research phenomenon and describing what exists concerning the research variables
(Creswell, 2013). It also entails observing variables in their natural setting without
manipulating them in any way. This design was selected because it suits the objective of
the study, which is to investigate influence of big data analytics on innovation in the
service sector in Kenya a case study of Airtel Limited Company. The descriptive design
is also more practical, less time-consuming, and cheaper than other designs because it
does not require manipulation of variables or collection of data from the same participants
at different points in time.

3.3 Population
Novikov & Novikov (2013) argued that population is perceived as the total sum of units
or objects that display similar attributes and can be used to determine a specific problem
under investigation. In addition, Ritchie, Lewis, Nicholls & Ormston (2013) concur that it
is a class of items that can be sampled to ascertain a conclusion concerning a particular
problem under investigation. The target population of this study was 1000 employees of
Airtel Limited. This included 18 members of senior leadership, 35 middle level managers
and 947 general employees. Table 3.1 shows the distribution of the target population.

29
Table 3. 1: Target population

Level Population
Senior leadership 18
Middle level managers 35
General employees 947
Totals 1000

3.4 Sampling Design

Selvam (2017) refers sampling as the determination of certain cases from the entire
populace of study. It is the determination of some piece of a total or totality based on
which a judgment or surmising about a totality is made (Kothari & Garg, 2014)

3.4.1 Sampling Frame

The sampling frame is a list of the population's objective characteristics from which the
study could make a selection. A sampling frame is the collection of elements from which
the sample is obtained (Creswell, 2016). In this study the study sampling frame included
members of senior leadership, middle level managers and employees of Airtel Limited.

3.4.2 Sampling Technique

The sampling technique is the act of choosing the number of subjects to include in the
sample (Orodho, 2010). In this study, purposive sampling was used to select members of
senior leadership, middle level managers and general employees of Airtel Limited. The
main justification of this method is that it is a fair method of sampling, which, if applied
appropriately, helps to reduce any bias involved compared to any other sampling
methods. Simple random sampling was used to select employees of Airtel Limited

3.4.3 Sample Size

Sample size is the number of observations or replicates to include in a statistical sample

(Creswell & Creswell, 2018). In this study, the sample size in a survey refers to the
number of units that are chosen from which data is gathered. This study sample size was
99 respondents. Nassiuma’s (2008) formula was employed to determine the sample size
of general employee.

NC 2
n=
C 2 + ( N − 1)e 2
Where

30
n = Represents sample size,
N = Represents study population
C = Represents coefficient of variation (21% ≤ C ≤ 30%), and
e = Represents error margin (2% ≤ e ≤ 5%).
Sub-sample formula: -

A/b × c = z

b – Is the total target population

c – Is the total sample size

z – Is the number of respondents obtained from each stratum

Calculating the sample size,

n = ____1000 (0.21)2_____
0.212+ (1000-1)0.022
n = 99.3.3
n =99 respondents
From the above calculations therefore, the study sample size was 99 respondents.

Table 3.2 shows distribution of the sample size from each of department. The following
formula was used to get the sample size from each level Robbinson (2010).

Table 3. 2: sample size

Level Population Sample Size

Senior leadership 18 2
Middle level managers 35 4
General employees 947 93
Totals 1000 99

3.5 Data Collection Methods

The study used the questionnaire as the data collection instruments. Structured
questionnaires were utilized since they guarantee information with fewer incidences of
bias and error. The researchers also considered the same since it guarantees response from
a wide range of respondents hence variety. The questionnaire targeted members of senior
leadership, middle level managers and general employees of Airtel Limited. To capture
appropriate information, questionnaires were divided into sections and developed based
on the study objectives. This research used both open and close-ended questionnaires for

31
the respondents to have an opportunity to understand the study problem. For close-ended
questions, a Likert scale was used.

3.6 Research Procedures

Before carrying out a pilot test the researcher obtained the necessary permissions that
were needed to carry out the research. The researcher first obtained an acquisition letter
from
Chandaria School of business to authorize the carrying out of the study, the ethics
approval to be accredited by the Institutional Review Boards (IRB). Authorization was
sought from National Commission for Science, Technology, and Innovations (NACOSTI)
to collect data from the respondents. Both the introduction letter from the university and
the research permit from NACOSTI clearly outlined the name of the researcher and the
purpose of the study. With both the letter, the researcher proceeded to visit the
respondents. Data was collected using the drop-and-pick-later method which was
collected after two weeks. The researcher utilized research assistants to collect data from
the respondents. The researcher also did quality checks to ensure that no question was left
unanswered or to find out if the data provided was out of range.

3.5.1 Validity of Research Instruments

(Krosnick, 2018) defines content validity based on the research results as the accuracy
and meaningfulness of inferences. This, therefore, implies that; validity is how much the
results obtained from the analysis of the data represent the phenomenon under the study.
The researcher sought help from research professionals, experienced graduates, and
lecturers to ensure the research instruments' face and content validity, and their advice
was incorporated in the final draft of the instruments. Piloting was also utilized to
improve face validity by assisting the researcher in identifying items in the study
instrument that may be confusing in eliciting meaningful information.

3.5.2 Reliability of research Instruments

Reliability is a measure of the extent to which a research instrument yields consistent

results or data after repeated trials (Crosnick, 2018). Reliability allows the estimation of
errors and the making of the necessary corrections by the researchers. There is an inverse
relationship between the reliability and the error that is the larger the reliability the
smaller the error and vice versa. The ability of the research instruments to yield constant

32
results after repeated trials were enhanced by pre-testing the questionnaire with a selected
sample that was not included in the main study. Cronbach’s Alpha was used as an internal
consistency technique. Evaluation of the degree to which different test items that probe
the same construct produce similar results is measured by the internal consistency
reliability. The higher the value of alpha the more desirable it is. Crosnick (2018) noted
that as a rule of thumb, a reliability of 0.70 or higher (obtained on a substantial sample) is
acceptable.
Table 3. 3: Results of Reliability Testing

Study Variable Number of Items Cronbach’s Alpha

Coefficient
Cost Reduction 5 0.768
Decision-Making 5 0.878
Customer experience 5 0.793

Average 0.832

3.5.3 Pilot Test

A pilot study was conducted at Safaricom limited Nairobi. This area was chosen because
it has the homogenous characteristics of the study area. Where 10 questionnaires were
given out and then analyzed. According to Kothari and Garg (2014), 10% of the sample
population was used for the pilot study.

3.7 Data Analysis Methods

Data was collected, analysed, and coded using SPSS software. The study then analyzed
quantitative data through descriptive analysis. Data was checked and edited especially
for quantitative analysis to attain completeness, clarity, uniformity, legibility, suitability,
and relevance. Collected data was analyzed qualitatively using the Statistical Package for
Social Scientists (SPSS) version 25.0. Inferential statistic will be used to determine the
relationship between variables Before starting the analysis process, the researcher
processed the data by scanning and editing, coding, categorizing, and tabulating it
appropriately. The selection of method of analysis must be suitable to the study purpose
and measure the research questions or hypotheses (Kothari, 2004). Presentation of the
analysed data was through tables and pie charts. This was important because they were

33
easy to interpret and understand by users of this research. The multiple regression model
was used in analysing the data through the equation given below.

Y= β0+ β 1x1+ β2x2+ β3x3 +ε

Where;

Y= Big Data Analytics

e= error term,

β1, β2, β3, = Regression weights for each variable,

X1= Cost Reduction

X2= Decision-Making

X3= Customer Needs

3.8 Chapter Summary

This chapter has covered the research methodology. The study used a descriptive survey
research design; the target populations were senior leadership, middle level manager’s
general employees of Airtel Limited. The data collection tool was the questionnaire while
data analysis was done using descriptive and inferential statistics. Chapter four has results
and findings and analysis.

34
 CHAPTER FOUR

4.0 FINDINGS AND DISCUSSIONS

4.1 Introduction
This chapter presents findings and discussions on influence of big data analytics on
innovation in the service sector in Kenya. The first part presents the response rate and
demographic information. The descriptive and inferential findings respectively are then
presented and discussed. The findings are in line with the objectives of the study.
4.2 Background Information

4.2.1 Response Rate

Response rate is defined as the number of questionnaires that are filled completely and
returned or collected against the questionnaires that are issued to the respondents
Maxwell, (2015).
Table 4. 1: Response Rate

No. of respondents No. of questionnaires Returned Response Rate (%)

99 87 88

To this effect, 99 questionnaires were issued out of which 87 were fully completed
representing 88% response rate. According to Mugenda and Mugenda (2003), a 50%
response rate is adequate, 60% good and above 70% rated as very good. This response
was therefore rated as very good for the study.

4.2.2 Respondents Background

The study examined the respondent’s information in respect to their gender, age and
academic level in the organization.

4.2.2.1 Gender of the respondents

The researcher was interested in knowing the gender of the respondents. The findings are
as shown in the figure 4.1. From the findings 57% of the respondents were male while
43% of the respondents were female. This indicates that majority of the respondents were
male. The findings imply that the organization has meet the third gender rule as
postulated in the Kenya constitution.
35
 Female Male
43% 57%

Figure 4. 1: Gender of the respondents

4.2.2.2 Age of the respondents

The researcher was interested in knowing the age bracket of the respondents. Table 4.3
illustrates respondents spread in terms of age bracket. It was established that 38% of the
respondents were in the age of 21-30years, 31% of the respondents stated that they were
in the age bracket of 31-40 years, 14% of the respondents were in the age of 41-50 years
while 17% of the respondents indicated they were above the age of 51 years. This
indicates that majority of the respondents were in the age of 21-30 years.
Table 4. 2: Age of the respondents

Age Frequency Percent (%)

21-30 Years 33 38%
31-40 Years 27 31%
41 – 50 years 12 14%
Above 51 years 15 17%

Total 87 100

4.2.2.3 Highest Level of Education

The highest level of education of the respondents was determined. The results from the
analysis are presented in figure 4.2. From the analysis 24% of the sampled population

36
stated that they had attained secondary level of education, 31% of the respondents stated
that they had attained college level of education, 21% of the sampled population stated
that they had attained university level of education while 24% of the respondents stated
that they had attained post graduate level of education. This implies that the respondents
had enough education level of education to answer the questioner correctly.

35%

30%
Percentage

25%

20%

15% 31%
24%
10%
21% 24%
5%

0%

Secondary
college
unversity
Post graduate

Figure 4. 2: Highest Level of Education

4.3 Influence of big data analytics on cost reduction at Airtel Kenya

4.3.1 Descriptive Analysis of big data analytics on cost reduction at Airtel Kenya

The researcher sought to determine influence of big data analytics on cost reduction in the
service sector in Kenya. Table 4.3 shows the respondent’s views. From the findings,
majority of the respondents agreed with a (mean = 4.012; std = 1.062) that big data
analytics not only improve the business performance and data management but also
increase the revenue and decrease the operational costs in the organization in addition
majority of respondents agreed with (mean =.4.056; std = 0.894) that the organization has
engaged in vigorous pursuit of cost reductions using big data analytics. Majority of the
respondents from Airtel Kenya concluded that cost leadership though reduction of
operational costs affected the level of performance of the company with a (mean = 4.333;
37
std = 0.898). The respondents agreed that big data analytics can help companies make
more accurate demand forecasts, which can reduce excess inventory and associated costs
with a (mean = 3.943; std = 1.297). Finally, majority of the respondents with a (mean =
4.012; std= 1.176) agreed that big data analytics has a significant impact on optimizing
pricing strategies.
Table 4. 3: Influence of big data analytics on cost reduction

Statement SD D U A SA Mean Std

Percentage (%) (%) (%) (%) (%) (%)
Big data analytics not only 7% 2% 6% 51% 33% 4.012 1.062
improve the business
performance and data
management but also
increase the revenue and
decrease the operational
costs in the organization
The organization has 3% 3% 6% 59% 29% 4.056 0.894
engaged in vigorous pursuit
of cost reductions using big
data analytics
Airtel Limited Company to 2% 3% 5% 38% 52% 4.333 0.898
gain competitive advantage
concluded that cost
leadership though reduction
of operational costs affected
the level of performance of
the company
Big data analytics can help 8% 12% 3% 32% 45% 3.943 1.297
companies make more
accurate demand forecasts,
which can reduce excess
inventory and associated
costs
Big data analytics have a 8% 5% 6% 41% 40% 4.012 1.176
significant impact on
optimizing pricing strategies.

4.3.2 Inferential Statistics for cost reduction

4.3.2.1 Correlation of big data analytics on cost reduction at Airtel Kenya

38
The study sought to establish the correlation between the influences of big data on cost
reduction at Airtel Kenya. The findings of the study are as shown in Table 4.4.
Table 4. 4: Correlation of big data analytics on cost reduction at Airtel Kenya

Cost reduction
Big data Analytics Pearson Correlation .336**
Sig. (2-tailed) .001
N 87
**. Correlation is significant at the 0.05 level (2-tailed).
As indicated in Table 4.4, the study indicates that there was a positive and statistically
significant correlation between big data analytics and cost reduction at Airtel Kenya. (r=
0.336; sig < 0.05). This implies that big data analytics enhances cost reductions at Airtel
Kenya.

4.3.2.2 Regression Analysis for cost reduction at Airtel Kenya

The study evaluated how big data analytics influences cost reduction influence at Airtel
Kenya using multiple regression analysis. The R-Squared is the proportion of variance in
the dependent variable which can be explained by the independent variables. The value of
R in this study was 0.336, which shows that the big data analytics can explain 33.6% of
influence of cost reduction in the service sector in Kenya.

Table 4. 5: Regression Coefficients of cost reduction

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.738 .441 6.203 .000
1 Big data .352 .107 .336 3.294 .001
analytics
a. Dependent Variable: Cost reduction

The interpretations of the findings indicated follow the following regression model.

Y= β0 + β1X1

Therefore,

Y= 2.361+ 0.352X1

39
Table 4. 6: Model Summary For Cost Reduction

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 0.336 0.113 0.103 .475

4.3.3 Analysis of Variance

The analysis of variance in this study was used to determine whether the model is a good
fit for the data. From the findings, the p-value was 0.001 which is less than 0.05 and
hence the model is good in predicting how big data analytics (y) influences cost reduction
at Airtel Kenya. The F-calculated (10.853) was more than the F-critical which shows that
the model was fit in predicting the influence of the independent variables on the
dependent variable.

Table 4. 7: Analysis of Variance of cost reduction

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 2.451 1 2.451 10.853 .001b
1 Residual 19.199 85 .226
Total 21.651 86
a. Dependent Variable: Cost Reduction
b. Predictors: (Constant), Big data analytics

4.4 Influence of Big Data Analytics on decision-making at Airtel Kenya

4.4.1 Descriptive Analysis of decision-making at Airtel Kenya

The researcher sought to determine level of agreement on influence big data analytics on
decision-making at Airtel limited Kenya. Table 4.4 shows the respondent’s views. From
the findings, majority of the respondents agreed with a (mean = 4.035; std = 1.195) that
big data analytics improve accuracy and speed of decision-making in addition the
respondents agreed with (mean =.4.2391; std = 0.812) that big data analytics improve
challenges associated with its implementation, including data quality and privacy
concerns. From findings the respondents agreed that decision-makers in the analytics

40
process ensure that the insights generated from big data are actionable and relevant to the
organization's goals with a (mean = 4.322; std = 1.050). Additionally, majority of
respondents with a (mean = 4.080; std= 1.080) agreed that big data analytics in the
organization help objectivity, accuracy, and efficiency. Finally, majority of the
respondents agreed that big data analytics support HR functions, including recruitment,
performance evaluation, talent management, and employee engagement with a mean =
4.425; std= 0.939).
Table 4. 8: Influence of big data analytics on decision-making at Airtel Kenya
Statement SD D U A SA Mean Std
Percentage (%) (%) (%) (%) (%) (%)

Big data analytics 8% 6% 3% 40% 43% 4.035 1.195

improve accuracy and
speed of decision-
making
Big data analytics 1% 3% 3% 39% 53% 4.391 0.812
improve challenges
associated with its
implementation,
including data quality
and privacy concerns.
Decision-makers in the 3% 6% 6% 25% 60% 4.322 1.050
analytics process
ensure that the insights
generated from big
data are actionable and
relevant to the
organization's goals.
Big data analytics in 7% 2% 6% 46% 39% 4.080 1.080
the organization help
objectivity, accuracy,
and efficiency.
Big data analytics 2% 7% 1% 25% 64% 4.425 0.939
support HR functions,
including recruitment,
performance
evaluation, talent
management, and
employee engagement

41
4.4.2 Inferential Statistics for decision-making

4.4.2.1 Correlation of big data analytics on decision-making at Airtel Kenya

The study sought to establish the correlation between the influences of big data analytics
on decision-making at Airtel Kenya. The findings of the study are as shown in Table 4.9.
Table 4. 9: Correlation of big data analytics on decision-making

Decision making at Airtel

Kenya
Big Data analytics Pearson Correlation .046**
Sig. (2-tailed) .009
N 87
**. Correlation is significant at the 0.05 level (2-tailed).
As indicated in Table 4.9, the study indicates that there was a positive and statistically
significant correlation between big data analytics and decision-making at Airtel Kenya.
(r= 0.046; sig < 0.069). This implies that big data analytics enhances decision-making at
Airtel Kenya.

4.4.2.2 Regression Analysis for decision-making

The study evaluated how big data analytics influences decision-making at Airtel Kenya.
Using multiple regression analysis. The R-Squared is the proportion of variance in the
dependent variable which can be explained by the independent variables. The value of R
in this study was 0.046, which shows that the decision-making can explain 4.6% of
influence of big data analytics on decision-making in the service sector in Kenya.

Table 4. 10: Regression Coefficients of decision-making

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 4.372 .449 9.743 .000
1 Big Data .045 .105 .046 .428 . 009
analytics
a. Dependent Variable: Decision-making

The interpretations of the findings indicated follow the following regression model.

42
Y= β0 + β1X1

Therefore,

Y= 4.372+ 0.045X2

Table 4. 11: Model Summary for decision-making

Model Summary
Model R R Adjusted R Square Std. Error of the Estimate
Square

1 .046a .002 -.010 .50415

a. Predictors: (Constant), Big Data Analytics
4.4.3 Analysis of Variance (ANOVA)

The analysis of variance in this study was used to determine whether the model is a good
fit for the data. From the findings, the p-value was 0.009 which is less than 0.05 and
hence the model is good in predicting how big data analytics influences(y) decision-
making at Kenya the F-calculated (0.184) was more than the F-critical which shows that
the model was fit in predicting the influence of the independent variables on the
dependent variable.

Table 4. 12: Analysis of Variance of decision-making

ANOVAa
Model Sum of df Mean Square F Sig.
Squares
Regression .047 1 .047 .184 .009b
1 Residual 21.604 85 .254
Total 21.651 86
a. Dependent Variable: Decision-making
b. Predictors: (Constant), Big data analytics
4.5 Big data analytics influence on customer experience at Airtel Kenya

4.5.1 Descriptive Analysis of customer experience at Airtel Kenya

The research sought to determine level of agreement on big data analytics influence on
customer experience at Airtel Limited. Table 4.13 shows the respondent’s views. After

43
the analysis, majority of the respondents agreed that big data analytics significantly
enhance the ability to identify customer needs and tailor products and services
accordingly with a (mean = 3.897; std = 1.137). The findings showed that majority of the
respondents agreed with (mean = 4.092; std = 0.982) that big data analytics can lead to
improved customer satisfaction further majority of the respondents agreed that big data
analytics can lead to increase in customer loyalty, and ultimately, increased revenue for
businesses with a (mean = 4.333; std = 0.897). Additionally, majority of respondents
(mean = 4.223; std= 1.064) agreed that big data analytics can help businesses understand
customer behavior, preferences, and needs, leading to improved customer satisfaction.
Finally, majority of the respondents with a (mean = 4.207; std= 1.013) that big data
analytics help businesses identify patterns in customer behavior and preferences.

Table 4. 13: Big data analytics influence customer experience at Airtel Kenya
Statement SD D U A SA Mean Std
Percentage (%) (%) (%) (%) (%) (%)
Big data analytics 9% 4% 9% 41% 36% 3.897 1.211
significantly enhance the
ability to identify customer
needs and tailor products
and services accordingly
Big data analytics can lead 7% 5% 5% 40% 44% 4.092 1.137
to improved customer
satisfaction
Big data analytics can lead 1% 7% 1% 39% 52% 4.333 0.897
to increase customer
loyalty, and ultimately,
increased revenue for
businesses.
Big data analytics can help 3% 7% 6% 31% 53% 4.223 1.064
businesses understand
customer behavior,
preferences, and needs,
leading to improved
customer satisfaction
Big data analytics help 5% 2% 8% 38% 47% 4.207 1.013
businesses identify patterns
in customer behavior and
preferences

44
4.5.2 Inferential Statistics of customer experience

4.5.2.1 Correlation of big data analytics and customer experience at Airtel Kenya.
The study sought to establish the correlation between the influences of big data analytics
on customer experience at Airtel Kenya. The findings of the study are as shown in Table
4.14.
Table 4. 14: Correlation of big data on customer experience at Airtel Kenya

Customer experience in the

Service Sector
Big data analytics Pearson Correlation .133**
Sig. (2-tailed) .019
N 87
**. Correlation is significant at the 0.05 level (2-tailed).
As indicated in Table 4.14, the study indicates that there was a positive and statistically
significant correlation between big data analytics and customer experience in the service
sector. (r= 0.133; sig < 0.019). This implies that big data analytics enhanced customer
experience in the service sector in Kenya.

4.5.2.2 Regression Analysis for customer experience

The study evaluated how big data analytics influenced customer experience Airtel Kenya.
Using multiple regression analysis. The R-Squared is the proportion of variance in the
dependent variable which can be explained by the independent variables. The value of R
in this study was 0.046, which shows that the big data analytics can explain 13.3% of
influence of customer experience at Airtel Kenya.

Table 4. 15: Regression Coefficients of customer experience

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients

B Std. Error Beta

(Constant) 3.570 .497 7.186 .000
1 Big data .147 .119 .133 1.238 .019
analytics
a. Dependent Variable: Customer experience
The interpretations of the findings indicated follow the following regression model.
45
Y= β0 + β3X3

Therefore,

Y= 3.570+ 0.147X2

Table 4. 16: Model Summary of customer experience

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .133 .018 .006 .50020
a. Predictors: (Constant), big data analytics

4.5.3 Analysis of Variance (ANOVA)

The analysis of variance in this study was used to determine whether the model is a good
fit for the data. From the findings, the p-value was 0.019 which is less than 0.05 and
hence the model is good in predicting how decision-making (y) influence of big data
analytics on innovation in the service sector in Kenya the F-calculated (0.532) was more
than the F-critical which shows that the model was fit in predicting the influence of the
independent variables on the dependent variable.

Table 4. 17: Analysis of Variance of customer experience

ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression .383 1 .383 1.532 .019b
1 Residual 21.267 85 .250
Total 21.651 86
a. Dependent Variable: customer experience
b. Predictors: (Constant), big data analytics

4.6 Summary
The chapter has presented the results and findings of the study; there has been a degree of
variance between the dependent and independent variables. Chapter five which succeeds
this chapter presents the discussion, conclusions, and recommendations to the policy
makers.
46
 CHAPTER FIVE
5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction
This chapter focuses on the discussion findings of the study; both descriptive and
inferential. This is followed by a presentation of the conclusions inferred from the
findings. The relevant recommendations are then suggested. Finally, the chapter outlines
the areas suggested for further research.

5.2 Summary of the Findings

The purpose of this study is to investigate influence of big data analytics on innovation in
the service sector in Kenya a case study of Airtel Limited company. The study was
guided by three research question; to what extent does big data analytics influence cost
reduction at Airtel Limited? How does big data analytics influence customer needs at
Airtel Limited? To this effect, 99 questionnaires were issued out of which 87 were fully
completed representing 88% response rate. Majority of the respondents were male who
were in the age of 18-25 years. The findings imply that the organization has met the third
gender rule as postulated in the Kenya constitution.

5.2.1 Influence of big data analytics on cost reduction at Airtel Limited.

From the findings, majority of the respondents agreed (mean = 4.012; std = 1.062) that
big data analytics not only improve the business performance and data management but
also increase the revenue and decrease the operational costs in the organization in
addition majority of respondents agreed with (mean =.4.056; std = 0.894) that the
organization has engaged in vigorous pursuit of cost reductions using big data analytics.
Majority of the respondents agreed that Airtel Limited Company to gain competitive
advantage concluded that cost leadership though reduction of operational costs affected
the level of performance of the company with a (mean = 4.333; std = 0.898). The
respondents agreed that big data analytics can help companies make more accurate
demand forecasts, which can reduce excess inventory and associated costs with a (mean =
3.943; std = 1.297). Finally, majority of the respondents with a (mean = 4.012; std=
1.176) agreed that big data analytics have a significant impact on optimizing pricing
strategies. The study indicates that there was a positive and statistically significant

47
correlation between big data analytics and cost reduction in the service sector. (r= 0.336;
sig < 0.05).

5.2.2. Influence of big data analytics on decision-making at Airtel Limited

From the findings, majority of the respondents agreed with a (mean = 4.035; std = 1.195)
that big data analytics improve accuracy and speed of decision-making in addition the
respondents agreed with (mean =.4.2391; std = 0.812) that big data analytics improve
challenges associated with its implementation, including data quality and privacy
concerns. From findings the respondents agreed that decision-makers in the analytics
process ensure that the insights generated from big data are actionable and relevant to the
organization's goals with a (mean = 4.322; std = 1.050). Additionally, majority of
respondents with a (mean = 4.080; std= 1.080) agreed that big data analytics in the
organization help objectivity, accuracy, and efficiency. Finally, majority of the
respondents agreed that big data analytics support HR functions, including recruitment,
performance evaluation, talent management, and employee engagement with a mean =
4.425; std= 0.939). The study indicates that there was a positive and statistically
significant correlation between big data analytics and decision-making in the service
sector. (r= 0.046; sig < 0.069).

5.2.3 Influence of big data analytics on customer experience at Airtel Limited

After most of the respondents agreed that big data analytics significantly enhance the
ability to identify customer needs and tailor products and services accordingly with a
(mean = 3.897; std = 1.137). The findings showed that majority of the respondents agreed
with (mean = 4.092; std = 0.982) that big data analytics can lead to improved customer
satisfaction further majority of the respondents agreed that big data analytics can lead to
increase customer loyalty, and ultimately, increased revenue for businesses with a (mean
= 4.333; std = 0.897). Additionally, majority of respondents (mean = 4.223; std= 1.064)
agreed that big data analytics can help businesses understand customer behavior,
preferences, and needs, leading to improved customer satisfaction. Finally, majority of
the respondents with a (mean = 4.207; std= 1.013) that big data analytics help businesses
identify patterns in customer behavior and preferences the study indicates that there was a
positive and statistically significant correlation between big data analytics and customer
experience the service sector. (r= 0.133; sig < 0.019).

48
5.3 Discussions

5.3.1 Influence of big data analytics on cost reduction at Airtel Limited

Majority of the respondents 88% agreed that big data analytics not only improve the
business performance and data management but also increase the revenue and decrease
the operational costs in the organization. The finding is supported by (Verma &
Bahttacharyya, 2019). Who found that big data analytics would not only improve the
business performance and data management but also increase the revenue and decrease
the operational costs. Further 88% of the respondents agreed that the organization has
engaged in vigorous pursuit of cost reductions using big data analytics. The respondents
agreed that big data analytics help companies make more accurate demand forecasts,
which can reduce excess inventory and associated costs. The findings agree with Baroto,
Madi and Abdullah (2017) who established that the telecommunications firms engaged in
vigorous pursuit of cost reductions, tight cost and overhead control and cost minimization
in areas such as sales force, and advertising. According to the findings, the study indicates
that there was a positive and statistically significant correlation between big data analytics
and cost reduction in the service sector. (r= 0.336; sig < 0.05). The p-value is less than
0.05 and hence the association was significant.

5.3.2 Influence of big data analytics on decision-making at Airtel Limited.

Majority of the respondents agreed that big data analytics improve accuracy and speed of
decision-making. The findings are in line with Rousseaux (2017) who proposes that using
big data-driven predictive analytic in knowledge collection can very creative, with BDA
accuracy is no more only parameter for knowledge improvement. The respondents agreed
that big data analytics improve challenges associated with its implementation, including
data quality and privacy concerns further the respondents agreed that big data analytics
support HR functions, including recruitment, performance evaluation, talent management,
and employee engagement. The findings agree with Kiron (2017) who found that many
organizations struggle to incorporate data into their everyday decision-making. This is
mainly because managers are unwilling to change their decision-making process since
they are so accustomed to act on expertise, intuition, and gut feeling. In a data-driven
culture, expertise, intuition, and gut-feeling must go hand in hand with technological
assets. The study indicates that there was a positive and statistically significant

49
correlation between big data analytics and decision-making (r= 0.133; sig < 0.019). The
p-value is less than 0.05 and hence the association was significant.

5.3.3. Influence of big data analytics on customer experience at Airtel Limited

The study findings indicated the respondents agreed that big data analytics significantly
enhance the ability to identify customer needs and tailor products and services
accordingly. 88% of the respondents agreed that big data analytics help businesses
understand customer behavior, preferences, and needs, leading to improved customer
satisfaction. The findings are in line with Akter & Wamba, (2018) who found that big
data provides relevant customer information by analyzing the past purchasing statics,
browsing behavior, and credit card transactions. It helps in acquiring relevant consumer
information and forecasting customer spending. The study established that there is a
positive association between big data analytics and customer experience in the service
sector in Kenya. The p-value is less than 0.05 and hence the association was significant.

5.4 Conclusions

5.4.1 Influence of big data analytics on cost reduction at Airtel Limited

The research concluded that big data analytics not only improve the business performance
and data management but also increase the revenue and decrease the operational costs in
the organization further the organization has engaged in vigorous pursuit of cost
reductions using big data analytics. The study concluded that for Airtel Limited
Company to gain competitive advantage the company should do reduction of operational
costs which affect the level of performance of the company. Big data analytics help the
organization make more accurate demand forecasts, which can reduce excess inventory
and associated costs. Big data analytics have a significant impact on optimizing pricing
strategies.

5.4.2. Influence of big data analytics on decision-making at Airtel Limited.

In relation to the second objective the researcher concluded that big data analytics
improve accuracy and speed of decision-making in addition big data analytics improve
challenges associated with its implementation, including data quality and privacy
concerns. Decision-makers in the analytics process ensure that the insights generated
from big data are actionable and relevant to the organization's goals. Big data analytics

50
support human resource functions, including recruitment, performance evaluation, talent
management, and employee engagement.

5.4.3 Influence of big data analytics on customer experience at Airtel Limited

On the third objective the research concludes that big data analytics significantly
enhanced the ability to identify customer needs and tailor products and services
accordingly also it leads to improved customer satisfaction. Big data analytics lead to
increase customer loyalty, and ultimately, increased revenue for businesses. Big data
analytics help businesses understand customer behavior, preferences, and needs, leading
to improved customer satisfaction. Finally big data analytics help businesses identify
patterns in customer behavior and preferences.

5.5 Recommendations

5.5.1 Recommendations for Improvement

5.5.1.1 Influence of big data analytics on cost reduction at Airtel Limited

The study found a significant relationship between big data analytics on cost reduction at
Airtel Limited. Therefore, this study recommends that Airtel Limited should invest in big
data to be able to help organizations to reduce volume of data to store, find and reduce
operational inefficiencies. This will ensure that telecommunications industry improve on
their performance and ensure they get a competitive edge. Given that the research
indicates that big data analytics can improve business performance, data management,
increase revenue, and decrease operational costs, it is recommended that Airtel Limited
continues to invest in and expand its use of big data analytics tools and technologies. The
study highlights the importance of cost reduction for gaining a competitive advantage.
Airtel should prioritize efforts to identify areas where operational costs can be reduced
using big data analytics. This could involve optimizing processes, identifying
inefficiencies, and streamlining operations. Utilize big data analytics to enhance demand
forecasting. By making more accurate demand forecasts, Airtel can reduce excess
inventory and associated costs. This will not only help in cost reduction but also improve
inventory management.

51
5.5.1.2. Influence of big data analytics on decision-making at Airtel Limited.

The researcher recommends that there is a significant relationship between big data
analytics on decision-making at Airtel Limited. Therefore, this study recommends that
Airtel Limited should invest in big data analytics and advanced tools in the area of
business intelligence for reporting and analyzing consumer behavior. These allowed the
organization to anticipate consumer needs more effectively, in addition to optimizing
their operations. Encourage decision-makers within the organization to actively
incorporate big data analytics into their decision-making processes. Emphasize the
benefits of improved accuracy and speed in decision-making that were highlighted in the
research. Recognize that data quality and privacy concerns can be challenges when
implementing big data analytics. Invest in data quality assurance processes and ensure
that privacy regulations are strictly followed to mitigate these concerns. Promote
collaboration between the HR department and data analytics teams. Effective
communication between these departments can lead to better utilization of data for HR
purposes. Stay informed about emerging trends and technologies in big data analytics and
HR. Be prepared to adapt strategies and tools as the field evolves to maintain a
competitive edge.

5.5.1.3 Influence of big data analytics on customer needs at Airtel Limited

Finally, the researcher recommends that there is a significant relationship between data
analytics on customer needs at Airtel Limited. Therefore, this study recommends that
Airtel Limited should invest in big data analytics to enhance the firm’s precision
marketing strategies including precision marketing model development, which will enable
the firm to identify customer patterns and trends, which can be used in offering
personalized product recommendations as well as targeted advertisements and
promotions. This will ensure the firm is able to create intimate and profitable relations
with the customer.

To foster innovation using big data, organizations should allocate resources, especially
capital, strategically. Ensuring access to sufficient funding can empower teams to
experiment, research, and implement innovative ideas effectively. Therefore,
organizations should prioritize securing adequate capital to support big data analytics
initiatives. Building a team with diverse skills and expertise is crucial for innovation.

52
Organizations should focus on recruiting, retaining, and upskilling their workforce to
ensure they have the necessary skills to drive innovation using big data analytics.
Furthermore, fostering a culture of continuous learning and development can contribute to
ongoing innovation. Despite the difficulties in measuring innovation outcomes,
organizations should invest in robust measurement systems. Implementing key
performance indicators (KPIs) and tracking innovation metrics can provide valuable
insights into the impact of innovation initiatives. Regularly reviewing and analyzing these
metrics can help organizations refine their innovation strategies. Organizations should
invest in understanding the underlying drivers of big data analytics. This involves
conducting research and analysis to identify the specific factors that contribute to
successful implementation and utilization of big data analytics. Tailoring strategies to
these drivers can enhance the effectiveness of innovation efforts.

5.5.2 Suggestions for Further Research

The study recommends a similar study would also be undertaken with more factors and
challenges investigated and therefore determine whether there is a significant change
between the findings of such a study and this study.

53
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 APPENDICES

Appendix I: Respondents Consent Form

I am Sophie Thairu, a master’s student at United States International University- Africa.
In order to fulfill the requirements of this course, am conducting a study titled THE
INFLUENCE OF BIG DATA ON COST REDUCTION, DECISION MAKING
AND CUSTOMER EXPERIENCE AT AIRTEL KENYA. I am kindly inviting you to
participate in this study by filling the provided questionnaire.

Participation in the study is entirely voluntary; participants may withdraw from the study
in case they feel uncomfortable. The study participants are students, directors, senior
manager, marketing department and information technology department. Questionnaires
are used for data collection.

The study does not involve any risks since it is entirely academic. No penalties will come
as a result of non-participation. Those who may discontinue participation will not be
penalised. You may skip questions that you don’t feel comfortable answering.

The collected data will be stored in the University database and University repository and
it will be accessible to authorised individuals

My Consent to Participate:

By signing below, I confirm my questions have been answered I consent to participate in

this study.

Signature of Participant ………………………………. Date……………………………...

Principal Researcher……………………………………Date……………………………...

57
 Appendix II: Letter of Introduction
To the respondent(s)
Dear sir/madam
RE: REQUEST FOR YOUR PARTICIPATION
My name is Sophie Thairu, a graduate student at United States International
University in Nairobi conducting a study on the “THE INFLUENCE OF BIG
DATA ON COST REDUCTION, DECISION MAKING AND CUSTOMER
EXPERIENCE AT AIRTEL KENYA. The purpose of this letter is to request your
consent to participate in a short survey by filling out the attached questionnaire.
Respondents are encouraged to fill out the questions in the questionnaire truthfully
and objectively, and should you require any clarification, kindly seek clarification
and/or assistance.
The information collected will be treated as confidential and will only be used for
academic purposes of the study.

Your participation is highly appreciated.

Yours sincerely

Sophie Thairu,

58
 Appendix III: Research Questionnaire
The purpose of the questionnaire is to collect data on influence of big data analytics on
innovation in the service sector in Kenya. A case study of Airtel limited. Kindly take your
time and respond to all the questions to the best of your knowledge and ability. Tick the
applicable answer in every question.

SECTION A: PROFILE OF THE RESPONDENT

1. Gender
Male ( ) Female ( )
2. Age
21-30 years ( ) 31-40 years ( ) 41-50 years ( ) above 51 years ( )

3. What is your highest level of education

Secondary school ( ) College ( ) University ( ) Postgraduate ( )

PART B: COST REDUCTION

4. Indicate the level of agreement or disagreement with the following on extent big data
analytics influence cost reduction on innovation in the Airtel limited Kenya. (1, Strongly
Disagree; 2, Disagree; 3, Undecided; 4, Agree and 5, Strongly Agree, Tick where
appropriate)

Statements 1 2 3 4 5
Big data analytics not only improve the business performance
and data management but also increase the revenue and
decrease the operational costs in the organization
The organization has engaged in vigorous pursuit of cost
reductions using Big data analytics
Airtel Limited Company to gain competitive advantage
concluded that cost leadership though reduction of operational
costs affected the level of performance of the company
Big data analytics can help companies make more accurate
demand forecasts, which can reduce excess inventory and
associated costs
Big data analytics have a significant impact on optimizing
pricing strategies.

59
PART C: DECISION-MAKING
5. Indicate the level of agreement or disagreement with the following on how big data
analytics influence decision-making on innovation at Airtel limited Kenya. (1, Strongly
Disagree; 2, Disagree; 3, Undecided; 4, Agree and 5, Strongly Agree, Tick where
appropriate)

Statements 1 2 3 4 5
Big data analytics improve accuracy and speed of decision-
making
Big data analytics improve challenges associated with its
implementation, including data quality and privacy concerns.
Decision-makers in the analytics process ensure that the
insights generated from big data are actionable and relevant to
the organization's goals.
Big data analytics in the organization help objectivity,
accuracy, and efficiency.
Bid data analytics support HR functions, including
recruitment, performance evaluation, talent management, and
employee engagement

PART D: CUSTOMER EXPERIENCE

6. Indicate the level of agreement or disagreement with the following on how big data
analytics influence customer experience at Airtel Limited.(1, Strongly Disagree; 2,
Disagree; 3, Undecided ; 4, Agree and 5, Strongly Agree, Tick where appropriate)

Statements 1 2 3 4 5
Big data analytics significantly enhance the ability to identify
customer needs and tailor products and services accordingly
Big data analytics can lead to improved customer satisfaction
Big data analytics can lead to increase customer loyalty, and
ultimately, increased revenue for businesses.
Big data analytics can help businesses understand customer
behavior, preferences, and needs, leading to improved
customer satisfaction

Big data analytics help businesses identify patterns in

customer behavior and preferences

60
 Appendix VI: Debrief Form
Thank you for participating in this study. The purpose of this study is to gain an
understanding of the influence of big data analytics on innovation in the service sector in
Kenya a case study of Airtel Limitedcompany.

You are reminded that your original consent document included the following
information:
your right to withdraw from the study at any time without any implications to me. If you
have any concerns about your participation or the information you provided in the light of
this disclosure, please discuss with me. I will be happy to provide any information I can
help answer questions you have about this study. If your concerns are such that you
would now like to have your data withdrawn, and the data is identifiable, I will do so.

The main researcher conducting this study is Sophie Thairu, a graduate student at the
United States International University-Africa, Department of Business Administration. If
you have questions about your participation in the study, please contact me on
0714411465

Final Report: If you would like to receive a copy of the final report of this study or a
summary of the findings when it is completed, please feel free to contact the researcher.

Your signature below indicates that you have been debriefed, and have been given an
opportunity to ask questions about the study, and all the questions asked have been
answered to the best of the participant’s knowledge and ability. A copy of this debriefing
form has been provided to the participant.

Signature of Participant ………………………………. Date……………………………...

Principal Researcher……………………………………Date……………………………...

61
Appendix V: IRB Ethical Certificate

62
Appendix VI: Research Permit

63