We have often talked about data, and this is because their importance in the business system is such that they lead to success. Indeed, data-driven marketing is the science that creates personalized relationships between companies and customers to the point of transforming the organization into a data-driven company. However, transforming a company into a data-driven organization requires a data-centric culture. This is where data literacy plays a crucial role in this transformation, with data literacy being one of the priorities for company employees. Let’s explore together how companies should approach data and why it is so important today to humanize them as well as analyze them..
Data Literacy: what it is
“People don’t buy stories and services, they buy relationships, history, and magic.” Seth Godin
When we talk about digital transformation today, one of the first things that comes to mind is the almost automatic comparison with dehumanization in favor of technology and automation, the only ones capable of driving change and achieving significant results. In reality, what many companies still don’t realize (which is why they remain hesitant towards digitalization) is that digitizing a business does not mean diminishing the resources that inhabit it, which are and remain the lifeblood of every organization. Digitalizing today means changing direction, embracing a culture that sees data as a concrete aid and never as a substitute for the human element that breathes and lives within the company in all its particularities. This is to introduce data literacy and its role within the company. Indeed, for a company to be considered data-driven, it needs to focus on aspects that generate value. Because it’s not data in itself that holds value, but rather the way it is collected, analyzed, and prepared—this process creates the surplus value capable of making a difference. Specifically, data strategy is defined as the ability to read, understand, create, and communicate information, thus giving meaning to data, interpreting it correctly, and telling a story through it, by appropriately selecting the most relevant information. Starting from this definition, we can define data literacy as data literacy, which focuses on the skills related to working with data. Just as literacy (literally: the ability to read and write) refers to the skills needed to read and interpret a text, data literacy requires the skills to create the fertile environment needed to extract the essence of the data.
Data Literacy: why it is important and what the benefits are.
After defining it, it’s time to explain why it is so important for every company today, as well as to outline the advantages that its application brings. Let’s start by saying that in the era of data management in all its forms, data literacy can help base the security of the production chain on machine learning, guide marketing through automated campaigns, provide customer support using AI, and so on. In short, data literacy is concerned with everything that a company needs to improve productivity and competitiveness. Its main task is to make the right decisions in the company, creating value and, more importantly, communicating the deeper meaning to all company resources. Data literacy means improving not only results but also employee loyalty, making the company more competitive in its ever-evolving reference market, never “out of time.” But what are the concrete advantages that data literacy provides to a company?
- Thanks to data literacy, more demanding consumers are able to respond promptly in competitive contexts.
- A data-driven company that aims for data literacy is certainly more competitive in the global market thanks to the skills of its employees, no longer reserved solely for specialists but for all company resources.
- The data management of a data-driven company is no longer just an IT issue, but an opportunity for top and middle management to stay updated on the production or sales situation.
- Data literacy allows for improving the decision-making process of top and middle management, enabling them to access crucial information more quickly and immediately.
Data Literacy: development of a data culture
Embracing digital transformation for a company requires dedication and a desire for growth, and should particularly follow these steps:
prioritize cultural change; clearly define the role of the Chief Data Officer (CDO);
learn how to monetize your data; adopt “best practices” to promote transformation with a data-driven perspective.
Data Literacy: the most important things to do to become a data-driven company.
To promote business transformation with a focus on data, a company needs to adopt a path to follow, a strategy that constantly engages with data without ever altering its essence, thus keeping its value alive. Below is a list, according to Gartner, of the most important things to do to ensure that a company can be considered data-driven:
- Prioritize the data vision, involving the entire top management and dedicating priority investments.
- A clear and straightforward approach allows focusing on both the positive impacts of implemented initiatives and the negative ones, which should be avoided.
- Making data scientists happy is a priority, as their goal is to engage in challenging and fulfilling work that inspires and motivates each other.
- Ensure that in the sea of data, only the data necessary for a specific goal are considered.
- Data quality is not everything. It’s important to immediately understand in which areas data quality is crucial, while accepting gaps in other sectors. In this regard, it’s essential to define the KPIs for data quality (Key Quality Indicators, KQI): transparency of data quality, measurement of KQI, and reporting this indicator becomes a driver for improving data quality in the long term.
- The architecture of transformation requires smart approaches: it’s necessary to scale before reaching the point of no return. Speed and tangible results are essential to develop a better data culture. A scalable and sustainable architecture is easier to implement gradually.
- Last but not least, human qualities are essential to succeed in the endeavor, particularly: minds, to promote business value and other rational benefits, hearts to generate passion and enthusiasm. Success requires dedication and continuous training to provide the right skills to all employees.
Conclusion
While in small and medium-sized enterprises data management continues to be viewed with traditional logic, as “an IT problem,” large companies are seeing the need from various business functions to access data insights more quickly and autonomously.
Recently, there has been a significant shift that sees SMEs fully engaged in this change called digitalization, where there are no losers or winners, only people in search of a transformation aimed at improving individual resources and, consequently, the entire company. For this to be possible, the individual skills of company resources must be enhanced by involving them in high-value activities that make traditional reporting much more efficient. This is because data literacy includes the ability to explore and communicate with data, interpreting it and making decisions based on each individual data point, communicating its meaning and value to others. Their reputation has always worked against them, to the point of categorizing them as too technical or too difficult to interpret. In reality, the heart of data is much more “human” than one might think: they analyze to improve, dig deep to argue, shedding light on truths, thus contributing to a change called innovation. See you next time!
FAQ
1.What is meant by Data Literacy?
Data Literacy refers to the ability to read, use, analyze, and communicate with data. It is a skill that enables employees at all levels to ask the right questions to machines and data, as well as to create knowledge, make decisions, and communicate the meaning to others.
2.Why is it so important for every company to introduce data literacy within its organization?
Thanks to data literacy, the company will certainly be more competitive in the market due to the skills of all its employees. Furthermore, good data literacy improves the decision-making process of top and middle management, enabling them to access crucial information more quickly and immediately.
