The important role of data literacy in the digital age
Data has become one of the most valuable resources in the world today, and its importance cannot be overstated. Data is the driving force behind decision-making and business strategy, making it a critical skill for anyone who wants to remain relevant in the job market. This is where data literacy comes into play as one of the most essential skills that individuals can possess in today’s world.
What is data literacy?
Gartner1 defines data literacy as the ability to read, write and communicate data in context, with an understanding of the data sources and constructs, analytical methods and techniques applied and the ability to describe the use-case application and resulting business value or outcome. A data literate individual is able to read, analyse and interpret data, and use it to make informed decisions. It may involve having a basic understanding of statistical and quantitative concepts and being able to work with data using tools such as spreadsheets, databases, and data visualisation software. Data literacy enables individuals to effectively use and communicate with data to inform decision-making and gain insights.
Data literacy is becoming increasingly important, as more industries and fields rely on data to drive growth and success. People with strong data literacy skills are better equipped to understand and leverage the data that surrounds them, which can lead to better outcomes. Furthermore, data literate people can collaborate better with data scientists to transform data and bring value to organisations.
The current focus on data science
Data science has been the focus of most discussions on data for some time now. However, this focus may have been short-sighted in the grand scheme of things. It has seen an increase in demand for data scientists by business and the development of technical skills required to manipulate, manage and analyse data. While these technical skills are undoubtedly important, it is not enough to make a meaningful impact in business, government and society.
According to IBM, data science combines mathematics and statistics, specialised programming, advanced analytics, artificial intelligence (AI), and machine learning with specific subject matter expertise to uncover actionable insights hidden in an organisation’s data. These insights can be used to guide decision-making and strategic planning. An emerging challenge however is that many expect data scientists to ‘create magic’, as there remains a misalignment between the techies and the rest of business − a misalignment that often leads to missed opportunities for value creation and impact through data. The real challenge for leaders and human capital managers lies in developing data literacy skills for people across all levels of the organisation. This will ensure that the average employee can understand, interpret and communicate data in a way that is relevant to different stakeholders.
Data literacy advocacy
According to the World Economic Forum (WEF) Future of Jobs 2020 Report,2 94% of business leaders expect employees to pick up new skills on the job. A recent Gartner survey of chief data officers found that poor data literacy is one of the top three barriers in building strong data and analytics teams, while a data literacy survey by Accenture of more than 9 000 employees in a variety of roles found that only 21% were confident in their data literacy skills.
Despite the growing shift towards data driven organisations, according to Tableau not all organisations are promoting data literacy, and need help convincing people of the value of a data culture. As data touches every aspect of our lives, the need for data literacy has never been greater. Organisations need to consider data advocates and deploying necessary resources to upskill people and create sufficient awareness on the importance of data. This would enhance and leverage data skills, increase data use, and drive shifts towards analytics-driven organisations.
The competitive advantage in the data-driven world leverages technology and data. Leaders often make the mistake of assuming that everyone in the organisation is or will be aligned. They also underestimate the different roles that different people may need to play in achieving organisational objectives. Having senior leaders, key stakeholders, and participants comprehending the importance of data is insufficient. To explain the rationale for the implementation of data governance systems it is not enough to limit advocacy to top executives, IT players, and data specialists. Every data citizen must embrace the culture change and mental shift that comes with investing in the health of business data. They should appreciate that success depends on having a reliable, business-ready data environment and why everyone needs to align and work towards set objectives.
Education, learning and development
According to MIT Sloan, in a world of more data, organisations with more data-literate people are the ones that are going to win.3 There is value in teaching people to communicate and persuade with data. Data literacy has always been a requirement for business success, and professions like chartered accountancy have always been part of the structured data ecosystem, providing reliable data for decision-making. The ‘ball game’ has however changed significantly towards big and unstructured data sets. The world created, captured, copied, and consumed 2 zettabytes (ZB) of data in 2010 and 97 ZB in 2022. This number is projected to rise to 181 ZB by 2025.4
To work with all this data, mass education and training are necessary. Programmes and courses should be designed to teach individuals how to use data effectively, with a focus on teaching individuals how to use data in decision-making processes, how to communicate data insights to different stakeholders, and how to use data to drive innovation and growth. Reforms are necessary to promote data literacy as a necessary skill for the future. Government and private sector institutions alike should work together to develop programmes that focus on data literacy. The education system and universities should consider including data literacy as a subject, ensuring that learners and students are equipped with the skills they need to use data in their future careers.
Conclusion
Data literacy goes beyond the technical skills required to manipulate data (data scientists) and focuses on the ability to analyse and draw insights from data. While there are many pressing challenges experienced currently, we should not lose sight of what is coming. Data literacy is essential for society at large and as more data becomes available, it is necessary for individuals to use data to make informed decisions. Data literacy can be used to grow businesses and address social issues such as poverty, inequality, and healthcare. Data can be used to identify trends and patterns that can inform policy decisions and drive much needed social change. The data management value chain is also specifically creating new opportunities for employment and business.
In today’s world, individuals and businesses generate an enormous amount of data. This data can be used to improve business operations, drive innovation, and generate new revenue streams. However, to achieve these benefits, organisations need to have employees who are data literate. To succeed in the data-driven world, it is crucial for young people and professionals, the future workforce, and leaders to be data literate. The promotion of data literacy will benefit the business sector, government, and society at large.
NOTES
1 https://www.gartner.com/en/information-technology/glossary/data-literacy.
2 https://www.weforum.org/reports/the-future-of-jobs-report-2020/.
3 https://mitsloan.mit.edu/ideas-made-to-matter/how-to-build-data-literacy-your-company.
4 https://www.statista.com/statistics/871513/worldwide-data-created/.
AUTHOR
Msizi Gwala, Project Director: Enabling Competencies, SAICA