Conceptualization, operationalization, and validation of the digital data stream Readiness Index

This article describes how in their search for value creation, companies are investing considerable resources in so-called "Big Data" initiatives. A peculiar aspect of these initiatives is the increasing availability of real-time streams of data. Successfully leveraging these streams to extract value is emerging as a critical competence for the modern firm. Despite the significant attention received, scholarly research on Digital Data Stream (DDS) remains insufficient. More importantly, there are no specialized definitions and measurement instruments that can move the field forward by initiating a cumulative research tradition. This article can provide clarification on key definitions, differentiating DDS from Big Data. Drawing on the organizational readiness concept, the DDS readiness index develops as a measure of organizational readiness to exploit real-time digital data. This article will conceptualize, define, operationalize and validate the index. By identifying the four dimensions of mindset, skillset, dataset and toolset as the elements of the DDS readiness index and discussing its managerial and research implications.