Why data literacy matters for business success
Recent findings from the Open Data Institute (ODI) concluded the UK government still requires a consistent definition of data literacy, and that there’s not enough emphasis on the non-technical skills also involved in understanding and communicating data.
Data is about facts, data literacy is about the ability to recognise, interpret and communicate the insights you can derive from these. This entails a range of skills, from the technical management and analysis of information, to the vital, albeit often neglected need for storytelling.
To make the most of data, organisations need to foster a strong data culture as part of a well-articulated data strategy, to develop these skills among an entire workforce no matter a person’s technical capability.
The importance of having a clear data strategy
Actualising a well-articulated data strategy means placing employees at the heart of data-related operations and must be aligned to an organisation’s overall business strategy. This involves establishing common repeatable methods, practices, and processes to analyse data, and being able to communicate insights across the business.
For organisations to get valuable insights from their data analytics it can’t be the responsibility of technical professionals alone. Various departments need access to insights relevant to their functions, which means they also have a stake in data literacy. Realising this will create a paradigm shift within the business, where data is leveraged as a tool for improved decision making, and insights will be regarded as more approachable, with employees coming to appreciate the value of data as a resource for improved performance, rather than avoiding it due to perceived inaccessibility.
Aligning data strategies with overall business strategy and operations is no mean feat. Chief Data Officers (CDOs) are ideal candidates in marrying together data analytics and the wider business, given their appreciation of informed decision making, and the desire to foster a data culture where internal information is properly managed and engaged with throughout the organisation. Moreover, their understanding of the technology landscape will assist when making platform and software selections.
This stands to benefit all departments, who’ll gain access to the tools and skills needed to work with data and derive insights. CDOs also embody the “can do” approach to professional development, believing it’s possible to train employees in data-related skills, regardless of their technical proficiency.
There’s a well-established correlation between hiring a CDO and business success, with research from Forrester suggesting 89% of organisations harnessing analytics to improve operations that appointed one to oversee the process have seen a positive business impact.
