A successful business necessitates the ability to comprehend, work with, analyze, and argue with information, which is known as data literacy.
Data has evolved into a universal language as a result of the growing prevalence of automation, robotics, and artificial intelligence. Those who master it are poised to realize the benefits. Nevertheless, it is not merely an individual skill set; it is a cultural perspective that must be ingrained throughout an organization in order to deliver the most significant value.
Enhanced enterprise value
Qlik commissioned the Data Literacy Index, which was conducted by IHS Markit and Wharton School academicians. The results of the index indicate that data-literate firms have an enterprise value that is between 3% and 5% higher.
Companies that experienced an increase in valuations also experienced comparable enhancements in productivity, gross margin, and other corporate performance metrics. This was facilitated by the democratization of data throughout the enterprise, not just in IT, and the general empowerment of employees to make data-driven decisions.
Data has the potential to drive more profitable operations, regardless of the department or business function, especially as firms navigate the Fourth Industrial Revolution and contend with an uncertain economic outlook.
By empowering employees to make more informed decisions at every level, data literacy contributes to the transformation of organizations. This includes the management of hospital beds, the comprehension of the role of discounts in enhancing sales, and the informing of product design.
Ultimately, organizations can enhance their bottom line by making better decisions based on insight and experience, rather than instinct, with the appropriate consumable information at their fingertips.
Incorporating data abilities
To become a data-literate organization, it is necessary to have a top-down vision, support, and investment. Management is required to inform employees of the significance of utilizing data in decision-making, provide guidance on the technical and human resources available to facilitate this, and synchronize the access and utilization of data throughout the organization. It is crucial that each individual comprehends the critical role they play in the exchange of data-driven knowledge and techniques with their peers.
In order to facilitate workforce development, certain organizations may opt to incorporate data literacy into their existing skills initiatives, while others may acquire learning software and literature on data.
Above all, the establishment of a strategic framework will provide employees with the autonomy and structure necessary to encourage them to consider the potential applications of data on a daily basis. The Data Literacy Project offers a variety of complimentary resources, such as an adoptive framework, free courses, and accreditations, to assist individuals in enhancing their data-related skills.
These components are essential for businesses that aspire to establish a robust foundation of data literacy and capitalize on its advantages.
In the short term, companies will gain an advantage by seizing the opportunity; however, it will become indispensable for their survival in the future.