A Data & Analytics Capability Model is a framework that organizations use to assess and improve their ability to leverage data and analytics for better decision-making and business outcomes. It outlines the various skills, processes, and technologies needed to effectively manage, analyze, and interpret data.

Source: Data & Analytics Capability Model | SAP Help Portal
Key aspects of a Data & Analytics Capability Model:
- Organizational Structure:
A model often includes elements like defining roles and responsibilities for data management and analytics.

- Data Management:
This covers areas like data collection, storage, quality, and governance.
- Analytics Operations:
This includes the tools, technologies, and processes for analyzing data and generating insights.
- Infrastructure:
This involves the physical and logical infrastructure needed to support data storage, processing, and analytics.
- Data Governance:
This ensures data is used ethically, securely, and in compliance with relevant regulations.
Benefits of using a Data & Analytics Capability Model:
- Improved Data-Driven Decision Making:
By understanding their data capabilities, organizations can make more informed decisions.

- Enhanced Business Performance:
Data analytics can lead to better operational efficiency, increased revenue, and improved customer experience.
- Increased Innovation:
Data can reveal new opportunities and trends, driving innovation within the organization.
- Better Resource Allocation:
A capability model can help organizations allocate resources effectively to support their data and analytics initiatives.
- Reduced Risk:
Strong data governance and security practices can minimize risks associated with data misuse or breaches.
Examples of Data & Analytics Capability Models:
- Data Analytics Capability Maturity Model (DACMM):
This model provides a roadmap for SMEs to improve their analytics capabilities, encompassing areas like organizational structure, analytics operations, infrastructure, data management, and data governance.
- SAP Data & Analytics Capability Model:
This model helps businesses identify the technology solutions needed to support specific data and analytics-related capabilities, such as data integration, data warehousing, and predictive analytics, according to the SAP Help Portal.
- Data Capability Framework (New Zealand):
This framework defines 25 capabilities associated with data use, covering areas like data literacy, data governance, and data quality.
In essence, a Data & Analytics Capability Model is a valuable tool for organizations to develop and enhance their ability to leverage data for strategic advantage and improved business outcomes.
Further Reading:
- Data & Analytics Capability Model | SAP Help Portal
- Developing data analytics capabilities: integrating the information systems success model and the resource-based view | Emerald Insight
- Data Analytics and Business Intelligence capabilities map
- Data capability framework guide – data.govt.nz
- AIS Electronic Library (AISeL) – ICIS 2024 Proceedings: A Data Analytics Capability Maturity Model for Small and Medium Enterprises: An Action Design Research
- Spotfire | Data Analytics: Powering Insight-Driven Organizations
- How a Data Catalog can Benefit Your Business | EPAM
- Big data analytics capabilities: Patchwork or progress? A systematic review of the status quo and implications for future research – ScienceDirect
- Creating a Data-Driven Culture: The Power of a Data Strategy Roadmap
- eBook: Integrating different data source views into 1… | VaultSpeed
- How To Achieve Effective Data Enablement in Your Organization | Secoda
- The Best Way to Build Data & Analytics Capabilities – RevGen
- 6 Vital Workstreams in a CDAO’s Playbook and How to Bring Them Together