A Capability Maturity Model for Developing and Improving Advanced Data Analytics Capabilities

Background: Advanced data analytics (ADA) is increasingly used in organizations to enhance decision-making, improve operational efficiency, and gain a competitive advantage. Yet, there is limited guidance available on the capabilities an organization should develop and improve on to effectively leverage ADA. To address this gap this study develops a capability maturity model answering the research question: “What are the key components of a capability maturity model that can effectively guide organizations in assessing and enhancing their advanced data analytics capabilities?” Method: A capability maturity model for advanced data analytics (ADA-CMM) was developed through a Delphi study using the design science research paradigm. To evaluate ADA-CMM for its utility interviews with practitioners were conducted on the use of ADA-CMM for assessing the maturity of a large company. To evaluate ADA-CMM effectiveness a nomological model was developed and tested using PLS-SEM based on a multi-company survey. Results: A comprehensive ADA capability maturity model prescribing necessary capabilities was presented. The model is deemed useful and effective and offers a method to assess ADA capabilities. The findings provide evidence supporting that ADA-CMM encompasses essential capabilities for creating value from ADA initiatives and can effectively measure an organization’s ADA capability maturity. Conclusion: This paper emphasizes the growing importance of ADA in enhancing business operations and competitiveness. Despite technological advancements, many organizations struggle to translate analytics efforts into tangible benefits. To address this, the paper proposes a Capability Maturity Model, ADA-CMM, to guide organizations in developing and improving ADA capabilities. This study contributes to literature by providing a well-structured and thoroughly evaluated capability maturity model for ADA, and to practice for navigating the challenges of ADA adoption and use.