To compete in a globalized world, organizations need develop their data analytic capability. Using a review of the literature and case studies, this study examines how organizations acquire and orchestrate the necessary resources to build their data analytic capability in a way that fits their organization and context. The literature review identified six categories of assets and resources needed for the development of data analytic capability, namely data, data analytics, technology, structure and processes, management, and knowledge and skills. The case study findings showed that their impact is interlinked, with the presence of technical knowledge in the organization being essential.
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A practical framework for the implementation of digitalization entitled the “Data Analytic Capability Wheel” was presented. The aspects encompassed by this framework included data quality, data analytics, IT infrastructure, processes, employee knowledge and skills, and management.
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In pursuit of competitive advantage in an increasingly globalized and complex environment, organizations are turning to continuous improvement and digitalization to achieve operational excellence. Viewed through the lens of Dynamic Capabilities Theory, the similarities complementarities, and synergies of continuous improvement capability and data analytic capability are examined. Bridging the gap between theory and practice, continuous improvement routines and practices that can be harnessed to accelerate the implementation of data analytical capability are identified. These include Hoshin Kanri to link digitalization projects to organizational strategic, training to develop organizational knowledge of digitalization, problem solving teams to break knowledge silos, and the use of PDCA-type processes for adopting and monitoring the performance of digital technologies.
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This study was presented at the Bled eConference and received the Outstanding Paper Award. The study examines how two organizational aspects, Transformational Leadership and Employee Empowerment contribute to companies harnessing their Data Analytic Capability to develop a Data Driven Culture. The findings of a cross-sectional survey design show that Transformational Leadership compounds the positive effect of Data Analytic Capability on Data Driven Culture.
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