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.
Digital transformation has been recognized for its potential to contribute to sustainability goals. It requires companies to develop their Data Analytic Capability (DAC), defined as their ability to manage and analyze data effectively. Despite the governmental efforts to promote digitalization, there seems to be a knowledge gap on how to proceed, with 37% of Dutch SMEs reporting a lack of knowledge, and 33% reporting a lack of support in developing DAC. While extensive attention has been given to the technological aspects of DAC, the people, process, and organizational culture aspects are as important, requiring a comprehensive approach and thus a bundling of knowledge from different expertise. Therefore, the objective of this KIEM proposal is to identify organizational enablers and inhibitors of DAC through a series of interviews and case studies, and use these to formulate a preliminary roadmap to DAC.
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