In recent times business analytics act as the key driver for innovation and business growth. A research study highlighted the fact that any decisions made with the help of business analytics resulted in increased organizational productivity. Before implementing business analytics capabilities (BAC), organizations must make sure that its employees are well informed and knowledgeable on the BAC dimensions for the successful functioning of the organization. Knowledge oriented employees enriched with business analytics capabilities engage in enhanced decision-making process. Informed decision making coupled with business analytics aids in innovative business models. Thus, BAC dimensions act as mediators on the impact of the knowledge orientation dimensions on innovative business models. This study also investigated the direct impact of the knowledge orientation dimensions on the BAC dimensions and business model innovation. Furthermore, the direct impact of the BAC dimensions on business model innovation is also studied. The research study was conducted in a private organization in Chennai and the data was collected through a questionnaire. Structural equational modelling was done using AMOS version 24 to identify the direct effects and mediation analysis using SPSS version 23 was done to identify the indirect effect. Based on the results, suggestions were proposed by the authors for developing efficient innovative business model.