Data Literacy & The C-Suite

Literacy is not the same as mastery. It has more to do with information and communication. It is rather the inculcation of confidence, willingness and understanding of a certain concept.?

Similarly, data literacy does not imply becoming a data scientist, but simply having the ability to work with and understand data to drive impact. Data literacy can help one acquire information, review data and analyse it, and communicate insights to make informed decisions.

In the digital world, data is clearly the new fuel. Therefore, setting up a truly data-driven culture can give your organisation a competitive edge. In fact, one of the non-negotiables of modern leadership skills is trusting and promoting the use of data for making decisions.

Why Does Data Literacy Matter?

The world is quickly adopting new technologies such as AI and ML to solve real-world problems. Leaders who are data literate can identify opportunities where data can add value to their business. This includes goals like targeting marketing efforts to enhance sales. 87% of business leaders say that their organisations can benefit from frontline workers having the right data resources and capabilities to utilise these tools to guide decisions.

It is also essential to effectively communicate the business value of data science and machine learning right from the start. Once this is established, leaders can begin the appropriate learning initiatives for employees. This must involve every employee, right from support staff to C-level executives.?

Given how data analysis has evolved from simple statistics to a highly analytical tool, data has become even more relevant to business decisions.

Over the past few years, data has changed the way businesses operate across several industries. Any business that is able to generate data can utilise business intelligence. Yet, business intelligence was rather limited before the rise of big data.

Today, big data is able to capture minute customer actions and provide very specific insights which allows businesses to create highly personalised offers. It has also allowed businesses to look for ways to make processes run more efficiently while finding trends and accurately predicting future events within their own respective industries.

Using Data in Business

Choosing the right metrics is critical to the success of an organisation. Data-driven managers are aware of their operational data and the information they convey about the state of the business. They are focused on managing the right metrics for enhancing profits.?

An example of a company that is leveraging data on a continuous basis to drive successful business outcomes is Netflix. Netflix skillfully uses data-driven insights and predictive analysis to understand what their customers would want to watch. By analysing specific metrics related to viewer preferences, it launches engaging content, which has led to some widely-acclaimed hits. This in turn improved customer retention and traffic for the OTT.

DBS Bank has also been widely using data analytics, which has kept the bank ahead of the curve. Having invested heavily in AI and data analytics over the years, DBS is providing customers with hyper-personalised offerings for better financial outcomes. The bank offers intelligent banking solutions like stock recommendations based on investor profiles, notifications for favourable foreign exchange rates, and more.?

How To Become a Data Literate Leader?

To establish a data-first culture in the organisation, leaders must themselves understand enough about data to make the right decisions. Only then, can they drive data literacy across the organisation.?

Here are a few ways of creating a data-literate framework:

Assess your organisation’s current data literacy

Start by examining how employees are presently creating, using, and communicating data in their roles. It is essential to understand that there may be variations across teams. For instance, tech-oriented teams may use data more widely and effectively compared to the rest of the teams. Evaluate whether employees appreciate the use of data in business outcomes and how much they rely on it for everyday decisions.

Develop a data literacy training plan

Once you have an idea of where the organisation is currently positioned in terms of data literacy, it is time to chart out a concrete plan. This involves first identifying those who are fluent with data and can serve as mediators. Second, look into areas where there are skill gaps. Next, organise training and workshops aimed at filling up these gaps using real-life cases applicable to your business. Ensure that there is enough room for continuous learning.

Source: Tech Target

Separate data literacy from technical literacy

As mentioned earlier, some teams may be more comfortable with using data than others. Hence, it is important to distinguish between data literacy and technical literacy. Care must be taken to ensure that employees are not overwhelmed with the technical side of data, but rather, comfortable with effectively using data in their current roles.

Quantify and communicate the success of data literacy training?

Measure the effectiveness of data literacy training by defining and tracking relevant metrics. This can be obtained by associating the training to specific business outcomes and identifying metrics such as time taken for certain processes pre- and post- integration of data analytics. Regular employee feedback can also help keep efforts on track.?

Source: Gartner

Leading a data-driven organisation requires a workforce that is data-literate. To start with, this necessitates the need for leaders who understand and appreciate the role of data in effective decision making. Business leaders who want to make informed decisions for supporting favourable business outcomes can chart a detailed plan to cultivate a data-literate culture. Ultimately, they can leverage data-driven models to stay ahead of the competition and reach quicker decisions.