Digital Analytics Won't Guarantee Project Efficiency, People Will

28.09.2026

Data-Driven Analytics Delivers Stronger Project Results Depending on Dimensions of Cross-Functional Coordination

For years, organisations have invested heavily in digital analytics to improve performance, streamline operations, and support better decision-making. Yet new research suggests that technology alone is not enough to deliver meaningful improvements in project outcomes.

A collaborative study between Wittenborg and Prince Mohammad Bin Fahd University published in the Journal of Project Management explores how capabilities of digital analytics influence project efficiency.

The study examines how dimensions of cross-functional coordination moderate the effect on project efficiency results. Findings revealed that timely data-driven decisions depend on employees' empowerment, communication skills, and management transparency, which strongly influence effective information exchange across the functions of projects.

Turning Data Into Action

The study found that digital analytics can help organisations identify trends, monitor performance, and make decisions based on changing conditions. Yet the research suggests that insights alone do not improve the efficiency of projects.

Instead, the real challenge lies in turning information into action across organisational functions.

For example, analytics may reveal changing customer needs, project risks, or opportunities to improve resource allocation. However, those insights only create value when different teams can interpret the information, make timely decisions, and collaborate together.

The findings show that organisations are more likely to reduce inefficiencies, improve responsiveness, and deliver stronger project outcomes when departments work in a coordinated way rather than operating in isolation.

Why Communication Matters

One of the study's most significant findings was the importance of communication, management, transparency, and empowering staff.

Among all the dimensions of cross-functional coordination examined, decision-making capabilities and communication skills emerged as the strongest contributors to project efficiency.

The researchers found that organisations achieve better results when management can share information clearly, make evidence-based decisions, and translate analytical insights into practical actions. In project environments where multiple departments are involved, these skills help teams respond more effectively and minimise delays, duplication of effort, and misunderstandings.

Employee empowerment, collaboration and knowledge sharing, transparency of information sharing and management support were also found to play important roles in strengthening project performance.

A Framework for Industry

The research also provides practical guidance for organisations seeking to improve project efficiency in increasingly data-driven environments.

By demonstrating how digital analytics and cross-functional coordination work together, the study offers an evidence-based framework for managers looking to improve responsiveness, optimise resource utilisation, and strengthen decision-making across projects.

Reflecting on the findings, one of the researchers, Emad Tariq, said: "Data alone does not improve performance. Our findings show that project efficiency improves when digital insights are supported by strong communication, empowerment, and transparency of management to improve decision-making across the organisation."

The study concludes that digital transformation is most effective when technology is supported by the organisational capabilities needed to act on data. While analytics can generate valuable insights, organisations achieve the greatest benefits when those insights are shared, understood, and applied across functional boundaries.