The Data Analytic Capability Wheel: An Implementation Framework for Digitalization

Abstract

For mature organizations to engage in digital transformation, they first must engage in digitization and digitalization. Digitalization requires the organizations to possess data analytic capability: the ability to transform data into useful insights in a way that creates or maintains competitive advantage. The purpose of this study was to formulate a practical framework for the implementation of digitalization. For this, a qualitative approach was used. Relevant aspects of data analytic capability were identified, based on a review of the literature supplemented with semi-structured interviews with organizations currently implementing digitalization. With these findings a preliminary implementation framework entitled the “Data Analytic Capability Wheel” was formulated. The aspects encompassed by this framework included data quality, data analytics, IT infrastructure, processes, employee knowledge and skills, and management. Future research should refine and validate this framework and examine whether it leads to the successful implementation of DAC in organizations.