Data literacy is the cornerstone and backbone of a successful business. Regardless of how widely disseminated and diverse the data information is, if business users are unable to handle it, it will be of little service to the company.
Data literacy should be prioritized for workers across sectors and at all organizational levels. It will help company leaders seeking to achieve a competitive edge. So, in whatever you do, strive to be the greatest; but if it involves data literacy, this guideline multiplies three times.
In addition to understanding how the company’s data functions and how it is used, employees who can hone their data literacy skills are someone the firm needs the most. Because they will be able to explain every organizational step in depth and simplify the entire process.
Data Literacy: What Is It?
The ability to interpret, write, and present data in context, including knowledge of data sources and constructions, analytical techniques used, and the use case, application, and resultant value, is called data literacy.
As a business owner, you must know the available data, how you may use it, and its limitations. You must be able to combine data from several sources or add trustworthy information from other sources if needed. Moreover, you must know how spatial context may result in a richer understanding and more wise choices. Business users must understand how important proactive data quality control is.
Of course, you can always turn to a data literacy consulting agency and make the process much easier. Much like literacy requires the ability to read and understand written material, data literacy requires the ability to find, understand, and share contextual data. A company can use data to achieve specific business goals by implementing a reliable data literacy program.
Why Is Data Literacy Critical to Your Company’s Success?
It is evident that data literacy skills are important for many IT business areas. But, it is often neglected that data sits at the core of all company functions and departments. Data literate employees may generate meaningful and valuable business insights by asking the right questions, collecting accurate data, and connecting the correct data facts. Additionally, it ensures that every employee knows how to store and use data ethically and legally.
Six thousand employees, including 1,200 executives, took part in a recent study on data literacy. The results showed that 85% of business leaders think that data literacy will be important for business success in the future. The survey also showed that most company executives predict that their teams will depend on and make their decisions on data.
Big data, artificial intelligence, and machine learning have all gained tremendous technological improvements. However, there aren’t enough experts with the knowledge and skills to use data efficiently. With the proper data literacy training, companies will be equipped with the internal know-how to optimize these cutting-edge technologies for different commercial and consumer use cases.
Data literacy is critical to the customer and user experience. It supports better productivity, data-driven critical thinking, and faster decision-making. Employees can improve their responsibilities and duties by using their data literacy skills to make working processes more effective, increase sales performance, and do other things. Customers reap the benefits of these changes by purchasing higher-quality goods.
Use Cases and Examples of Data Literacy
When the entire company is formed of data-literate staff, the important data management tasks and teams perform at their peak:
Data governance is a tool companies use to govern their data assets and keep them protected, accurate, and comprehensive. The success of data governance cannot be attributed to a single team; all employees must have the required level of data literacy.
All employees must understand and abide by the data policies many companies have. This involves understanding how to access sensitive data, maintain data security, and do other data-related tasks.
Data experts can correspond insights fetched from data more effectively by creating a visualization of the data. Like a graph or chart. Infographics, tables, films, charts, and maps can all be used in visualization, which is terrific. To understand the consequences of the data in front of them, stakeholders and the authors of these representations need to have at least a basic knowledge of data literacy.
A trustworthy data ecosystem we may build and maintain with the help of data literacy. This ecosystem can comprise physical infrastructures like service space or cloud storage and non-physical elements like software and data sources.
Turning unstructured data into one that is more readable and usable is known as “data wrangling.” Data manipulation reduces data mistakes. The duty of maintaining data in an appropriate shape is one that all employees who work with the data contribute to. A company may use people or automated tools for data wrangling.
Also Check: The Importance Of Data Analyst In A Business
Key Data Literacy Abilities
Know the differences between quantitative and qualitative data types, including nominal, discrete, continuous, and ordinal data. It is one of the most elementary skills in data literacy. Basic data skills include knowing how to identify the source of the data. Knowing the data type and assessing its quality can reduce bias and error and improve understanding.
People with a higher degree of data literacy begin to understand the intricacies and constraints of data. For example, rephrasing a survey question can provide drastically different responses and qualitative data. Data visualizations can also be deceptive. Data-literate people can spot trends, gaps, outliers, and patterns in data. So, they can assist experts in minimizing inaccurate interpretations of visual data.
Employees should understand data principles pertinent to their specific tasks. Regardless of how advanced or straightforward their broad understanding of data is. For example, understanding marketing data phrases like page views, site traffic, unique visitors, and impressions would benefit everyone working in digital marketing.
The benefits of data literacy to all of your employees may not be immediately apparent to you if you are a business owner. Still, the long-term benefits are undeniable: data-literate employees can analyze data logic and apply their skills to any business challenge.