Data literacy: Why it matters to business

What does a data literacy expert bring to the table? In an increasingly data-driven business environment, just collecting information isn’t enough; the ability to understand data is what separates the wheat from the cuff. This is where the data literacy expert comes in.

In the modern world, individuals and organizations rely heavily on data to guide strategy, decision-making and operations; knowing the data is a key enabler to driving business outcomes. Data literacy is essential for understanding trends, making predictions and driving innovation. There’s an increasing need for this specific skill, yet the role and benefits of that expertise are somehow unclear to many organizations.

What exactly does a data literacy expert do? They understand complicated things behind the curtain from a business viewpoint. In short, it’s about the ability to read, write and communicate data in context, understanding data sources and constructs, analytical methods and AI techniques. Normally, they possess strong knowledge in data analysis, statistics, visualization and effective communication of data-driven insights.

Benefits of data literacy

The data literacy expert – aka “the missing link” – helps other people in the organization identify, understand, interpret and act on data within a business context to influence business value or outcomes. Among other things, they provide training and education, develop data tools, support data-driven projects, implement data governance policies and translate complex data findings into actionable insights. In our projects, we often see them as part of the business and IT alignment.

The advantages of data literacy in an organization are several:

• Improved decision quality. Enhances decision-making capabilities at all levels of an organization by ensuring data is accurately interpreted.
  
  
• Competitive advantage. Organizations with strong data literacy are better positioned to capitalize on data insights and outpace competitors when it comes to innovation and growth.
  
  
• Increased efficiency. Minimizes errors and reduces time spent on data interpretation, leading to streamlined operations.
  
  
• Future-proofing the workforce. Equips employees with critical skills for the digital era, ensuring adaptability to future technological changes.

How secure this core competence? 

Nearly every business is dealing with an incredible amount of data, making data literacy a core competency across all industries. How do you grow data literacy within the organization then? Can you foster a data-literate workforce yourself? Based on our experience, most organizations face a critical skills gap in this area. Low data literacy is holding many teams back and stalling data analysis and digital transformation initiatives across the enterprise. 

Enabling data literacy through the organization often requires external training. At Cognizant, where data expertise always has been a key component of our offering, we provide this as part of a data-intensive project or as a standalone project. Whatever way you choose, investing in data literacy experts is essential for organizations looking to thrive in a data-driven world, ensuring they can leverage data effectively to drive growth and innovation.

Visit our Data and AI section of the web or contact Ali Salih to learn more.